County OKs TIF 9

Madison County approved Huntsville's proposed Tax Increment Financing District on Wednesday.

Why it matters: The decision allows the city to move forward with its proposed TIF 9, and subsequently big investment in downtown infrastructure.

Catch up quick: Huntsville City Council postponed a vote on a proposed 1% lodging tax increase last week, awaiting this decision from the county.

• Now that it's approved, the city can move forward with presentations and decisions on the TIF and tax proposals, since both are aimed at funding a $200 million expansion at the Von Braun Center.
• The TIF will also fund $20 million in four other projects, each with a $5 million price tag, including renovations at the former federal courthouse and the North Huntsville Beltline Greenway.

What they're saying: Commissioners voiced concerns over tax revenues for the county and its schools, each of which would lose out on the incremental increases over the life of the TIF.

• "For us to give up any money when we've got big projects coming, it's not easy," District 4 Commissioner Phil Vandiver said. "But I do think in the long run this project will pay off and be a big advantage for downtown Huntsville along with Madison County."

Zoom in: The proposed TIF covers 3,700 acres of Huntsville's central downtown core, and won't change the tax rate, but will capture increases in tax revenues resulting from rising property values in the defined area.

• School board members have also raised questions on what the funding disruption would mean.

Driving the news: The county has projects in the works, too, namely its work to construct a new $100-million courthouse.

What we're watching: The City Council next meets on July 9, when it is expected to hold the final vote for the creation of the TIF, confirms Paul Gattis, communications specialist with the city.

• That will create the TIF, but there will be other votes relating to the TIF in the future, he said.