The Front Row development on Clinton is among new projects whose addition to the tax base will be captured for the latest Tax Increment Financing District. Photo: Derek Lacey/Axios
Huntsville's latest Tax Increment Financing District has been created.
Why it matters: The City Council's approval, which followed collaboration with the Board of Education and a nod from the Madison County Commission, creates the funding framework for $200 million in upgrades at the Von Braun Center.
Catch up quick: Check out our TIF explainer here, and our earlier coverage of the lodging tax here.
The two votes came after little fanfare or discussion at last week's council meeting, and both were unanimous.
How it works: The TIF creates a 3,700-acre district downtown where property tax collections will be maintained at their 2025 levels, with the same distribution going to schools and other tax money recipients.
New tax money generated from increased property value thanks to new development inside the district, like the recently-opened Front Row multi-use complex right across the street from the VBC, will be captured and collected into a special account.
From that account, the city will pay down debt service for money borrowed to construct a $200 million expansion at the VBC and four other projects in the area at $5 million each.
By the numbers: Thursday's vote on the lodging tax brings the total tax paid on hotel room nights in Huntsville to 10%, with the new percentage earmarked for the VBC work.
Based on recent collections, that 1% should raise just under $200,000 annually, with shares of the tax also going to recreational facilities and tourism promotion.
