Tax increment financing (TIF) is a program that allows the increase in assessed valuation and tax revenues attributed to the new development pay for eligible new development costs. The program is designed to encourage development that would not otherwise occur, and it is the joint responsibility of the City and Port Authority to assure the project would not occur “but for” the assistance provided through tax increment financing.
Eligible Uses for TIF:
Tax increment financing will be considered to assist private development only in those circumstances in which the proposed private projects meet one or more of the following uses:
- To develop blighted or under-utilized areas of the community;
- To meet the following housing-related uses:
- To provide a diversity of housing adjacent to the downtown area;
- To provide a variety of housing ownership alternatives and housing choices;
- To promote affordable housing for low- or moderate-income individuals; or
- To promote neighborhood stabilization and revitalization by the removal of blight and the upgrading of existing housing stock in residential areas.
- To remove blight and encourage redevelopment in the commercial and industrial areas of the community in order to encourage high levels of property maintenance and private reinvestment in those areas;
- To increase the tax base of the City in order to ensure the city’s long-term ability to provide adequate services for its residents while lessening the reliance on residential property tax;
- To retain local jobs, increase the local job base, and provide diversity in that job base;
- To increase the local business and industrial market potential of the City;
- To provide adequate short-term business and shopper parking, and resident parking;
- To encourage additional unsubsidized private development in the area, either directly or through secondary “spin-off” development;
- To offset increased costs of redevelopment, over and above those costs that a developer would incur in normal urban and suburban development;
- To accelerate the development process and to achieve development on sites which would not be developed without this assistance; or
- To meet other uses of public policy, as adopted by the City/Port Authority from time to time, including promotion of quality urban design, quality architectural design, energy conservation, decreasing the capital and operating costs of local government, etc.
Please reach out to the Lake City Port Authority Director or City Administrator to begin the Tax Increment Financing (TIF) Process.
Lake City TIF Policy
Tax abatement is the process by which a portion of property taxes are rebated back to the property owner, who then uses it to help offset development or redevelopment costs. Tax abatement is simpler and less restrictive than tax increment financing and is quite useful for smaller projects. Tax abatements can be provided for any type of property as long as it meets a public benefit test. The project must provide one or more of the following public benefits:
- Increase or preserve tax base
- Result in job creation or retention
- Redevelop blighted areas
- Provide services not currently available to the residents of Lake City
The availability of tax abatement is limited. In any given year, for all economic development projects taking place, the City can abate an amount equaling no more than 10% of its current net tax capacity, or $200,000, whichever is greater.
Please reach out to the Lake City Port Authority to begin the Tax Abatement Process.
The Lake City Revolving Loan Fund (RLF) is a public source of money from which loans are made for business development projects. The RLF is a low-interest, deferred-payment loan program that can be used to leverage additional private sources of funding. The RLF may not be used as the primary source of financing for a project and is typically used to fill a “financing gap” in a project if a business owner lacks the funds to meet the equity requirements of traditional bank financing. When interest and principal payments are made to the RLF from outstanding loans, the money “revolves” and can be made available to other borrowers.
Businesses must be located, or willing to relocate, within the corporate boundaries of the City of Lake City.
Eligible Uses of RLF Funds:
- Land and Building Acquisition
- Land Improvements
- New Building Construction
- Building Renovation
- Purchase of Machinery, Furniture, Fixtures, or Equipment
Ineligible Uses of RLF Funds:
- Debt Refinancing
- Working Capital
- Equipment Relocation
- Routine maintenance that does not extend the life of the structure
Please reach out to the Lake City Port Authority to begin the Revolving Loan Process.
Revolving Loan Fund Forms
The Lake City Facade Improvement Program (FIP) is a public source of money from which loans are made to eligible applicants for the rehabilitation of business building exteriors.
Businesses must be located in Zoning District B1 – Central Business District or B2 – Highway Commercial within the corporate boundaries of the City of Lake City to be considered for a loan. Vacant properties are not eligible unless an occupancy plan is in place.
Eligible Uses of FIP Include:
- Exterior Improvements
- Examples: tuck-pointing, cleaning of bricks, window replacement, installation of signage
- Code Compliance
- Examples: exterior correction of code violations, mitigation of safety hazards
- Increasing Handicap Accessibility
- Examples: installation of ramps or handrails, entrance modifications
- Historical Building Preservation
- Examples: restoring original building features or design
- Exterior Improvements
Please reach out to the Lake City Port Authority to begin the Facade Improvement Loan Process.
Facade Improvement Program Forms