City's TIF revenue sees steady increase

The tax dollars are speaking: Le Mars is seeing growth in areas pegged for development.

That showed up in two areas designated as urban renewal areas by the city: one around the western quadrant of Le Mars, including industrial and commercial areas, and one around the former Westmar University.

In an urban renewal area, the governing body can use Tax Increment Financing (TIF) to collect and use any increase in property tax revenue there to pay for debt relief or improvements within that designated area. To measure the increase, a starting date is set, with that date's property tax level as the base. Anything above that base, then, is collected as TIF revenue.

In the Le Mars Urban Renewal area, which includes industries like BoDeans, Schuster Trucking and Le Mars Public Storage, and businesses like 4 Brothers Restaurant, the TIF dollar numbers for the coming year are predicted to go up about $200,000.

"We're definitely seeing good growth there," said City Administrator Scott Langel, pointing to expansions by several companies including BoDeans and Le Mars Public Storage.

TIF revenue in the Le Mars Urban Renewal area was just under $2.8 million in fiscal year 2007, budgeted at $3 million for the 2008 fiscal year, and expected to be about $3.2 million for fiscal year 2009, Langel said.

In the past, TIF revenue from this area has helped pay for the roads, water and other work in the Two Rivers Center, which includes 4 Brothers Restaurant and the Holiday Inn Express.

In the Westmar Urban Renewal Area, TIF revenue is predicted to have jumped by about $15,000.

"The reason that area is showing growth is probably primarily construction of residential housing, along 15th Street and in the Lancaster addition," Langel said.

In fiscal year 2007, the Westmar Urban Renewal Area captured about $227,953, then in fiscal year 2008, about $230,760 was estimated, although numbers are not final yet. Another increase is planned in the fiscal year 2009 projection, estimated at $242,900.

The TIF revenue there, Langel said, is used for debt retirement and improvements there.