Confused? Try this Quick Guide to the TIF

TIF stands for Tax Increment Financing. Under the TIF Act, a town can designate a TIF district by committee, or commission. Usually the districts are “blighted” or otherwise undesirable for development. In Willow Springs, the TIF district is limited exclusively to the area which used to be the old Willow Springs motel.
 
Incrementally increasing tax revenues happen when there is an increase in economic activity. In this case, there has been no economic activity in the TIF district since 2016. With the construction of a retail store, real estate taxes will help the developer to recover some of their investment in Willow Springs. 
 
The redevelopment plan approved by the TIF Commission and the City Council in Willow Springs will clear the vacant buildings from the lot located at the corner of North Cherry St. and East Main St. and build a new Family Dollar retail store. 
 
The TIF area does not negatively affect taxes in any other area or on any other business.  
 
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The New TIF District in Willow Springs
 
What is it?
* A TIF is Tax Increment Financing using the increased revenues from new economic activity to partially reimburse a risktaker (Guffey Properties) for their $1.2 million investment in Willow Springs. The developer expects to recover about $869,250 from the TIF. 
* A committee must define the geographical area of the TIF district, and this cannot change without further action of the committee. This TIF district is ONLY the area where the new Family Dollar will be built. 
* This TIF will affect only the new store and lasts for 23 years.
* If the Family Dollar closes before the 23 years, the TIF will cease to exist, and the remaining funds will not be collected.
 
What is it Not?
* It is not an increase in sales taxes throughout Willow Springs. 
* It is not an addition to property taxes throughout Willow Springs. 
* It does not take funds from existing tax programs. 
* It does not automatically transfer to any other tax area if the Family Dollar closes before the 23 years are up.
 
What is the Benefit?
* The TIF will be used to pay for redevelopment of a derelict property without negatively impacting other businesses or the City of Willow Springs. 
* The new retail store will bring jobs to Willow Springs.
* This will likely improve property values near the location.
* The Family Dollar is a new prototype for select markets only. The closest Family Dollar stores to Willow Springs are in West Plains and Seymour.  That means this new store has the potential to bring in customers from other areas where there is not a Family Dollar, generating additional revenue for the town. 
 
Want more details? See the full report on the TIF Commission’s meeting
 

Howell County News

110 W. Main St.,
Willow Springs, MO 65793
417-252-2123

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