Tax Increment Financing and Economic Development: Uses, Structures, and Impact

368 Pages·2019·3.072 MB·English

by  Craig L. Johnson, Kenneth A. Kriz

TAX INCREMENT FINANCING
AND ECONOMIC DEVELOPMENT
Second Edition

TAX INCREMENT FINANCING
AND ECONOMIC DEVELOPMENT
Second Edition
USES, STRUCTURES, AND IMPACT
EDITED BY
CRAIG L. JOHNSON AND KENNETH A. KRIZ
Published by State University of New York Press, Albany
© 2019 State University of New York
All rights reserved
Printed in the United States of America
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For information, contact State University of New York Press, Albany, NY
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Library of Congress Cataloging-in-Publication Data
Names: Johnson, Craig L. (Craig Lawrence) editor. | Kriz, Kenneth A., editor.
Title: Tax increment financing and economic development / Uses, Structures,
and Impact / Craig L. Johnson and Kenneth A. Kriz, editors.
Description: Second edition. | Albany : State University of New York Press,
[2019] | Revised edition of Tax increment financing and economic
development, c2001. | Includes bibliographical references and index.
Identifiers: LCCN 2018035977 | ISBN 9781438474977 (hardcover : alk. paper) |
ISBN 9781438474984 (pbk. : alk. paper) | ISBN 9781438474991 (ebook)
Subjects: LCSH: Tax increment financing—United States. | Urban renewal—United
States—Finance.
Classification: LCC HT175 .T38 2019 | DDC 336.22/0973—dc23
LC record available at https://lccn.loc.gov/2018035977
10 9 8 7 6 5 4 3 2 1
Contents
List of Figures and Tables ix
Acknowledgments xv
Part I. Background
Chapter 1
Introduction 3
Craig L. Johnson and Kenneth A. Kriz
Chapter 2
A Primer on Tax Increment Financing 13
Craig L. Johnson and Kenneth A. Kriz
Chapter 3
A Review of State Tax Increment Financing Laws 31
Kenneth A. Kriz and Craig L. Johnson
Chapter 4
The Use of Debt in Tax Increment Financing 57
Martin J. Luby, Tima T. Moldogaziev, Craig L. Johnson,
and Ruth Winecoff
Part II. Implementation, Uses, and Structure
Chapter 5
The Port Covington TIF: Did Baltimore “Protect This House”? 83
Roy T. Meyers
vi Contents
Chapter 6
TIF for Major Project Development: The Case of the Stapleton
Airport Redevelopment 101
Christine R. Martell
Chapter 7
An Incentive Program Grows Up: The Evolution of TIF in Chicago 117
Andrea Craft and Rachel Weber
Chapter 8
TIF in California: Birth, Growth, Death, and Resurrection 147
Catherine Horiuchi and Jeffrey I. Chapman
Chapter 9
The (D)Evolution of TIF Use: Redevelopment to Land
Development in Nebraska 173
Craig S. Maher, Sungho Park and Ji Hyung Park
Chapter 10
Using TIF for Brownfields Redevelopment 199
E. Evans Paull
Chapter 11
State Super TIF Programs: New Tools for Transformative
Urban Redevelopment 223
E. Evans Paull
Part III. Economic, Social,
and Fiscal Impact
Chapter 12
The Theory and Economic Impact of Tax Increment Financing 243
Kenneth A. Kriz
Chapter 13
Tax Increment Financing and Spatial Spillovers 257
Anita Yadavalli and Michael Delgado
Contents vii
Chapter 14
The Conceptual Pliability of TIF and the Political Rhetoric of
Environmental Remediation: Groundwater Pollution and
Tax “Decrement” Financing in Wichita 277
Chase M. Billingham and Sean Sandefur
Chapter 15
TIF and Education Funding: Issues and Impact 297
Phuong Nguyen-Hoang
Chapter 16
TIF Legislation in Indiana: Agile and Adaptive 315
Perry Burnett, Mohammed Khayum, Sudesh Mujumdar,
and Daniel Friesner
Chapter 17
Conclusion 329
Craig L. Johnson and Kenneth A. Kriz
Contributors 333
Author Index 339
Subject Index 343

Figures and Tables
Chapter 2
Figure 2.1 The TIF Increment: Property Assessed Value (AV)
and Tax Revenue 16
Table 2.1 The Creation of Tax Increment Revenue 19
Figure 2.2 The Stages of TIF 22
Chapter 3
Table 3.1 TIF Enabling Statute Provisions for the Project
Initiation, Plan Formulation, and Plan Adoption
Stages 34
Table 3.2 TIF Enabling Statute Provisions for the Plan
Implementation, Evaluation, and Termination Stages 48
Chapter 4
Figure 4.1 TIF Issuance: California vs. All Other States,
2000–2016 59
Figure 4.2 Top Five TIF Issuing States, Excluding California,
2000–2008 60
Figure 4.3 Top Five TIF Issuing States, Excluding California,
2009–2016 61
ix