Tax increment financing (TIF) is a tool that allows future tax revenues from new development in a designated area to pay for public infrastructure improvements in that area. TIF districts are established to promote development in blighted, contaminated, conservation or enterprise zones. The tax increment is the difference between taxes collected from property values before and after improvements. This increment is used to finance things like streets, sewers and parking in support of the new development. Ottawa, Kansas has several eligible areas for potential TIF districts, including industrial parks and corridors that could be annexed into city limits. The process involves establishing the district boundaries, approving a redevelopment plan, and issuing bonds or other financing to fund approved infrastructure projects.

1. Understanding Tax Increment Financing (TIF)

9. Calculating the Increment

14. Value of the Increment $33,281 $665,623 All things being equal, the increment over the life of the TIF district will generate $665,623 in property taxes to be used for public improvements within the TIF district.

16. Financing TIF

19. TIF Eligibility

22. Areas Eligible in the Ottawa Area

23. Areas Eligible in the Ottawa Area: Franklin County Enterprise Zones within city limits High Priority Enterprise Zones within city limits Enterprise Zones outside city limits

24. Areas Eligible in the Ottawa Area: City of Ottawa Enterprise Zones within city limits High Priority Enterprise Zones within city limits

25. Areas Eligible in the Ottawa Area: Northeast Industrial Park

26. Areas Eligible in the Ottawa Area: K-68 Corridor * *Requires annexation into the city limits

27. Areas Eligible in the Ottawa Area: 15 th and 17 th Streets

28. Areas Eligible in the Ottawa Area: The Granger Property * *Requires annexation into the city limits

29. Areas Eligible in the Ottawa Area: Fogle Quarry * *Requires annexation into the city limits

30. The TIF Process

34. Olathe’s Success Story: 151 st Street $6.9 million in public improvements 5 commercial entities 214 acres of vacant field developed into commercial district

35. Questions or Comments?