TIF coming to Brighton in 2020

BRIGHTON - With the addition of the new Dollar General store, the City of Brighton hopes to use some of the increased taxable values in the area to help the community.

For the last two years, since word first came the new store was locating in Brighton, the council had been discussing the addition of a Tax Increment Finance (TIF) district to the area. In February, the city council voted to approve the TIF for the area running from the intersection of Ginkgo Avenue and Highway 78, through town, and end at the cemetery on Highway 1. A TIF district, which is a revenue-generating program set up by the state during the 1980s, returns additional taxes gathered due to increases in valuation for city use.

'There was discussion about putting a sidewalk to the cemetery at some point,” Brighton city administrator Amy Dailey said.

Speculations show the city may receive an additional $20,000 to $30,000 per year revenue from the TIF. Many steps will be taken to form the TIF through July. Work has to be complete prior to Dec. 1 in order for the TIF to be certified with the county. If approved, the first TIF funds would be received July 1, 2020.

Brent Hinson, city administrator of Washington, runs a consulting firm that has been hired to help Brighton set up the TIF. He and former Washington Economic Development Group (WEDG) director Ed Raber had discussed installing a TIF when it was first learned Dollar General would locate in Brighton. Hinson explained TIF revenues can be used for public improvements. He said the original use for TIFs was the removal of slum and blight. In addition to aiding with the formation of the TIF, Hinson is also working with the city to create an urban renewal plan.

'It's an attempt to take the benefits of the development and spread those into various projects for Brighton,” he said.

Hinson explained there is great leeway in how the city uses TIF funds. In some cases, a tax rebate can be offered to a business for locating in a TIF. The more common use in Washington is for installation of infrastructure for a new business. In Brighton, Hinson said the city is considering such things as downtown improvements and abatement of dangerous buildings.

'When you are a small town with a limited budget it is always nice to have a funding source to deal with some problems,” Hinson said.

A TIF can last for up to 20 years or, if being used for abating slum and blight, it can last indefinitely. Hinson explained the downtown TIF in the City of Washington is a slum and blight TIF and is used for redevelopment. He said if the council opts to go with the slum and blight designation, it would be with the goal of redeveloping and improving infrastructure in the core part of town.