TIF FAQs

What is Tax Increment Financing (TIF)?

Tax Increment Financing is an economic development mechanism available to local governments in Ohio to finance public infrastructure improvements.

How does a TIF work?

A TIF works by locking in a taxable worth of real property at the value it holds at the time the authorization was approved. Payments from the increased assessed value of any improvement to real property beyond that amount are directed toward a separate fund to finance the construction of public infrastructure defined within the TIF legislation.

What is the Parkway Centre TIF?

In 2002, the Parkway Centre retail development prompted Grove City’s first TIF agreement between Franklin County, Jackson Township and the South-Western City Schools. This agreement helped expedite infrastructure and utility improvements along Stringtown Road and also the extension of Buckeye Parkway from Stringtown Road to White Road.

Is this new money for the schools?

No. The agreement has been in place since 2002 with the first payments to the school district due within 90 days after the end of calendar year 2008. This money has been budgeted for in the five year forecast.

Is this the same as a tax abatement?

No. There is no reduction of taxes and no tax break. The businesses still pay the same tax they would pay if there wasn’t a TIF. The monies are just used in terms of the construction of public infrastructure improvements such as roadways, water lines, sanitary sewer.

What are the benefits then?

Parkway Centre would not have been built up as quickly as it was without the TIF. It could have taken seven or eight years longer to build up without the public infrastructure improvements. As additional development occurs, a larger tax base is created and the partners realize a larger return. The development of Parkway Centre provides job creation, income tax, and area amenities such as transportation, shopping, and recreation offerings - enhancements that would have taken much longer without the TIF.