Tax Increment Financing (TIF)

• View the Tax Increment Financing (TIF) Policy

Over the past 20 years, the City’s use of TIF has helped create nearly 2,000 affordable housing units, including 400 single-family homes and over 1,500 multi-family rental units. 

The City’s use of TIF has also helped to create and retain over 1,600 jobs in the City over the past 20 years. In the past 10 years, the City’s use of TIF for redevelopment has created an estimated $456 million in new assessed market value and generated nearly $7 million in new tax capacity for the City of Rochester. 

The City has historically been pretty conservative with the use of TIF. Only 1.6% of the City’s tax capacity is located within TIF districts.

• It does not draw funding away from the existing tax base or other taxing entities.
• It utilizes the increased property valuation resulting from the new development that would not have existed without the assistance provided to the project. 

TIF is generally used to offset the costs of things like:

• land or building acquisition;
• utility relocation;
• site improvements or preparation, such as demolition;
• and the installation of public infrastructure such as streets, sidewalks, parking, and storm sewers.

The typical types of TIF districts that are found in the City of Rochester are:

• Redevelopment TIF districts: These TIF districts aim to remove blighted conditions, stabilize neighborhoods, and increase the local tax base.
• Housing TIF districts; and
• Economic Development TIF districts.

Redevelopment TIF districts have the objective of removing blighting conditions, stabilizing a neighborhood, and increasing the community's tax base. 

Housing TIF districts are intended to facilitate the construction of affordable workforce housing in the community. 

Economic Development TIF districts have the objective of creating new jobs and retaining living-wage jobs in the community.