ELKINS, WV (LOOTPRESS) – The City of Elkins confirmed on Friday that the city’s application for designation as a TIF District had been approved by the West Virginia Department of Economic Development.
TIF, or Tax Increment Financing, districts are areas which have been determined to be lacking in economic viability and thus potentially requiring government intervention to sustain essential revenue streams. Funds issued in areas qualifying as such are intended to promote growth and future economic viability within these areas.
The approval was issued just before Thursday’s meeting of the Elkins City Council, according to a release from the city. The city will now be authorized under West Virginia law to establish the TIF district as proposed.
Moving forward, City Council will be presented with an ordinance which will require approval to facilitate the enactment of the TIF district.
“TIF is a mechanism created in state law to help cities and counties pay for needed projects when other financing is not available,” read a release from Elkins City Hall detailing the development. “At the heart of the TIF is the concept of reserving future increases in property tax revenues for local use, while avoiding the need to increase property-tax rates.”
According to the application approval letter submitted to the City of Elkins by the West Virginia Department of Economic Development, the proposed project plans have been approved with bond financing not to exceed the amount of $25,000,000.
The aforementioned funds are earmarked for the utilization of capital improvements within or in service to the proposed TIF district area, “including the design, permitting, acquisition, construction, and equipping of site, infrastructure, and other improvements, both public and private, that will facilitate development within.”
It has been asserted that the approval of the TIF district and anticipated issuance of funds to the city will not impact tax rates, nor will it impact school system revenues, which are protected under the School Aid Formula of West Virginia.
Additional information on the application and approval can be found at the City of Elkins website.
