Creation of an urban renewal area in Remsen could generate money to extend public utilities to a new business and tear down old buildings in its downtown.

An urban renewal area is a district which designates where Tax Increment Financing (TIF) revenue can be spent. TIF is created based on taxes from designated structures built within the district. Those taxes can be collected for 20 years.

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"We are using all of the taxes to upgrade the city infrastructure," said Barry Thompson, Remsen city attorney. "That's what we can use the money for."

TIF revenue will extend public utilities to Bavarian Meadows Assisted Living Facility being constructed north and west of the Golden Pheasant off Highway 3.

The tax money will also finance sewer, water and sidewalk repairs, and buy and destroy dilapidated buildings in downtown Remsen.

"Hopefully we can try to get some new businesses in town if we provide them with some space," Thompson said.

Remsen Medical Clinic, Bavarian Meadows Assisted Living Facility, a proposed American Bank along Highway 3, and the existing business district on Washington Street will be included in the urban renewal area.

Thompson said there are no numbers yet as to how much money will be generated in TIF from that area as those valuations are still being calculated.

City officials took the first step to set up the urban renewal district Aug. 1 when they met with and notified Plymouth County and the Remsen-Union School District officials of the plan.

Creating an urban renewal area to pay for projects such as these is a benefit to smaller communities because it means not raising property taxes for residents, Thompson said

"It's the only way you are going to get the small towns to expand," he said. "These small communities have to do some of that stuff to make it work."