North Charleston has expanded a special tax-financing district that will channel some future city, county and school district property taxes into the city's redevelopment initiatives.
Initially, the funding will mostly support the ongoing development of the city-sponsored Oak Terrace Preserve subdivision near Park Circle. Funds could also be used throughout the designated areas for things such as street and utility improvements, and parks.
The way it works is, the city has expanded what's known as a tax increment financing district, with the county and school district's approval. The deal extends by 10 years a TIF district that was due to expire in 2018, and increases the size of that TIF district to nearly 700 acres.
Within the TIF district, for the next 15 years, property taxes generated by new development and rising property values will be used to pay for city-chosen improvements within that same area.
The Beach Company's Garco Mill development and the former Naval Hospital are both within the TIF area.
New property tax revenues from development and rising real estate values would have gone to the city, county and school district general funds, if there were no TIF district. The TIF concept is that public improvements will increase property values, which will create tax revenues, which will repay money borrowed to fund the improvements.
The school district accounts for the largest share of property tax revenue, and will keep 12.5 percent of the new property tax revenues that it would have otherwise received, under an agreement with the city. The TIF district will get the rest.
Reach David Slade at 937-5552