TIF (Tax Incremental Financing)
TIF (Tax Incremental Financing)
Since the City of Sioux Falls established its first Tax Increment Financing District in 1989, the City has taken a conservative approach to the establishment of TIF Districts in Sioux Falls. The City has effectively and reasonably used TIF as a development incentive for blighted areas within the core of our community.
Tax Increment Financing assists local governments in attracting private development and new businesses into blighted areas. New businesses mean more jobs, more customers, and in turn, more private investment. The jobs and additional investment, both private and public, mean more money for the community.
TIF Diagram - Explanation:
- Upon establishment of the TIF District boundary - the base assessed value is established.
- The property taxes collected from the base valuation continue to be distributed to the city, county and school district jurisdictions throughout the life of the TIF District.
- Additional property taxes that are collected from the increased valuation due to the improvements that will be made go into a TIF Fund. Those additional property taxes collected within the TIF fund are known as the increment. The increment can be used to reimburse the cost of a wide variety of development expenses; including but not limited to: public improvements, site preparation, remediation, architectural fees, land acquisition write down, utilities, and financing costs.
- The increment is determined by conservatively estimating what the anticipated assessed value will be after project completion.
- After the project is completed and the TIF increment is paid out, the TIF District is dissolved, and ALL property taxes are then distributed to the city, county, and school district jurisdictions.
- The City of Sioux Falls uses SDCL 11-9 as a regulatory guide for the use of TIF in Sioux Falls. All requests for the establishment of TIF Districts are reviewed with both the Sioux Falls School District and the Minnehaha County Commissioners prior to being reviewed for approval by the Sioux Falls Planning Commission and the Sioux Falls City Council.
Current TIF Districts:
- TIF District #7
- was created in 2007 to facilitate the development of the Minnesota Center office building.
- Download Map of TIF District #7
- Approved TIF District #7 Project Plan
TIF District #10
- was created in 2010 for the construction of the CNA office building at the site of the former Schoeneman's Lumber Company.
- Download Map of TIF District #10
- Approved TIF District #10 Project Plan
TIF District #11
- was created in 2011 for the clean-up of property near Terry Redlin Elementary which helped lead to the Bancroft Place development.
- Download Map of TIF District #11
- Approved TIF District #11 Project Plan
TIF District #12
- was created in 2011 for the continued redevelopment of property in the vicinity of Phillips to the Falls and to initially support the Dekalb Lofts project. TIF District #8 was terminated in creating TIF #12.
- Download Map of TIF District #12
- Approved TIF District #12 Project Plan
TIF District #13
- was created in 2011 to support public improvements as part of Raven Industries’ major investment in a headquarters facility in Downtown Sioux Falls.
- Download Map of TIF District #13
- Approved TIF District #13 Project Plan
TIF District #14
- was created in 2012 for the construction of the Downtown Hilton Garden Inn building at the site of the former Schoeneman's Lumber Company.
- Download Map of TIF District #14
- Approved TIF District #14 Project Plan
TIF District #15
- was created in 2012 as a public-private partnership to develop a sports complex, recreation area, and commercial development in partnership with the Sanford Health Organization.
- Download Map of TIF District #15
- Approved TIF District #15 Project Plan
TIF District #16
- was created in 2012 to mitigate challenging topography and site clean-up for the construction of 80 affordable single family homes referred to as Whittier Heights. The proposed project is located east of north Cliff Avenue and north of East 1st Street.
- Download Map of TIF District #16
- Approved TIF District #16 Project Plan
TIF District #18
- was created in 2013 to help alleviate environmental challenges that occurred from prior land use activity along Phillips Avenue for construction of a mixed use development. The site is located north of west 4th Street and west of Phillips Avenue.
- Download Map of TIF District #18
- Approved TIF District #18 Project Plan
TIF District #20
was created in 2015 to construct a mixed-use building at 120 West 12th Street to provide economic stimulus and improve a blighted area. The site is bordered by South Main Avenue to the west, West 12th Street to the south, and West 11th Street to the north. The property is directly east of the Washington Pavilion.
Download Map of TIF District #20
Approved TIF District #20 Project Plan
TIF District #21
was created in 2017 as part of an extension of Phillips Avenue to Falls Park for development of City-owned property. The site is bordered by North Main Avenue to the west, West 2nd Street to the north, and North Phillips Avenue to the east.
Download Map of TIF District #21
Approved TIF District #21 Project Plan
TIF District #22
was created in 2020 to construct a mixed-use development at the old Sioux Steel site downtown to stimulate economic development of the site by supporting the construction of a parking ramp to support the public's access to the development. The site is bordered by Falls Park West to the west and north, West 6th Street to the south, and the Big Sioux River to the east.
Download Map if TIF District #22
Approved TIF District #22 Project Plan