Unique Financing Ability of P3
As an Urban Renewal Authority, P3 has access to unique financial tools to encourage redevelopment, namely Tax Increment Financing, or TIF. In order to take advantage of this tool, the redevelopment area must demonstrate certain conditions that are described as Blight.
What is Blight?
According to Colorado State Statute, an area is considered blighted when at least four of the following elements exist:
YOUR GUIDE TO TAX INCREMENT FINANCING
The use of TIF is governed by state law. It enables URAs, like P3, to collect the new property and/or sales tax revenues generated within a designated urban renewal area to help finance further improvements. TIF is not a separate tax. It is the increase in property and sales tax revenues that would not otherwise be available but for the redevelopment project. A URA can capture these incremental revenues for a period of up to 25 years.
TIF dollars can be used to:
Finance the issuance of bonds
Reimburse developers for a portion of their project costs
Make public improvements to support redevelopment efforts