Huntsville's TIF 9 aims for big Von Braun Center work
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The Space and Missile Defense Symposium is an annual staple at the Von Braun Center. Photo: Derek Lacey/Axios
Huntsville is finalizing plans for a ninth tax increment financing (TIF) district that the city hopes will fund $220 million in infrastructure projects.
Why it matters: The improvements are expected to boost development and property values, increasing property tax collections by an estimated $15 million to $20 million.
Zoom in: That was the message from Shane Davis, Huntsville's director of economic and urban development, at last week's City Council meeting, where he laid out five projects the nearly 3,700-acre downtown TIF will fund:
- The marquee project is a $200 million expansion to the Von Braun Center's North Hall with new exhibit, food service and meeting areas as well as upgraded parking, new South Hall entrances, exterior concourse upgrades and a new access bridge.
- The remaining four projects, each with an expected $5 million cost, are a North Huntsville Beltline Greenway, new Mill Creek Park, improvements to Lowe Avenue and renovations to the former federal courthouse.
Driving the news: Work at the VBC is prioritized, Davis said, to help keep major conferences that bring big business to Huntsville as other cities make big civic center upgrades, like Nashville's $600 million project.
- "Those conferences have grown such that everybody that wants to have a booth or attend those conferences .... can't get to the conference," he said.
How it works: TIFs don't change the tax rate, but as development happens and property values increase, new tax revenue is generated.
- The TIF allows the city to borrow money for projects inside its boundaries, repaying that debt over time via the new tax revenue from development spurred by those projects.
What we're watching: The council didn't take any formal action at last Thursday's meeting, but will adopt the final plan at its May 28 meeting, after which the Madison County Commission must do the same.
- After that, an application can be made to the county tax assessor to enact the TIF district.
More from Axios: How TIFs work