In a tax increment financing, a redevelopment commission or redevelopment authority issues bonds payable directly or indirectly from property taxes attributable to the increase in assessed value of the property within a specified area. Typically, the proceeds from the bonds are applied to acquire, construct, renovate or equip facilities which are projected to increase the assessed value of the area by an amount that will generate property taxes sufficient to pay debt service on the bonds.
Tax increment financing is available for:
- Land acquisition
- Clearance of blighted areas
- Construction of local public improvements
Barnes & Thornburg has served as bond counsel in a variety of tax increment financings.