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Newspaper
Cedar Rapids Gazette
Location
Cedar Rapids, Iowa, United States of America
Date
Jul 22, 2001
Page
23
Cedar Rapids and Linn County officials debate tax increment financing as a tool to spur development. Proponents cite added tax value and job creation while noting funds stay out of general taxes. critics warn of shifted costs and uneven regional impact. The Cedar Rapids school district and Linn County preview how changes in TIF law affect schools and budgets.
Kirkwood's job training now relies more on state income tax withholdings and less on tax increment financing. The college covers seven counties Linn Johnson Iowa Benton Cedar Washington and Jones. TIF funded about 25 percent of the program formerly and was the backbone for financing new training efforts. The college uses a mix of trainers staff and consultants to provide customized programs for manufacturing processing assembly R&D and related sectors.
Enterprise zones in Cedar Rapids provide state tax relief for distressed businesses for 10 to 20 years. The zones, created in 1998 and expanded in 2000, offer exemptions, credits, and refunds for locating or expanding firms that create at least 10 full time jobs, meet wage and insurance requirements, invest at least 500000, and avoid retail status. Companies mentioned include Cargill, The Gazette, Hawkeye Rubber, Penford, Quaker Oats, Ralston Foods, Cedar Rapids Inc, Pillsbury, and Weyerhaeuser.
Cedar Rapids considers expanding tax incremental financing to subsidize low income housing. Scott Olson argues TIF funds could cut building costs by funding streets and sewers and encourage core city development. The OSADA project is currently the housing TIF example with a 10 year exemption and 30 year tax reinvestment.
TIF districts in Link County hold a total taxable value of 1.27 billion with a base value of 932 million. The increment nears 343 million, driving about 9.6 million yearly tax returns to fund district improvements and job training. Kirkwood Community College receives roughly 1.7 million of that total. Additional notes cover Hiawatha and Marion districts with similar structures, increments, and distributions among local taxing bodies.
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