Business View Magazine
3
commercial, retail, and industrial ventures. In addi-
tion, the city government, via its Economic Develop-
ment Office, has implemented a specific strategy – the
creation of Tax Financing Incentive (TIF) districts - in
order to cultivate the growth of new businesses.
Through the use of TIFs, municipalities typically divert
future property tax revenue increases from a defined
area or district toward an economic development proj-
ect or public improvement project in the community.
Pollard explains that once a TIF district is delineated, a
baseline is set for what the value of the district is prior
to development. “Once development occurs, you’re
measuring the difference between the original value
balance of the district and the post-development value
of the district. And then, you’re capturing that incre-
ment in tax revenue,” she says. Instead of putting those
future real estate tax increases into the city’s general
fund, they’re used to re-pay the monies that are bor-
rowed for the infrastructure improvements within the
district. “We take that increment – the new value in
tax revenue - and pay the bond for all the roads, and
water, and sewer extensions, and new traffic signals.”
Rochester has created three TIF districts, so far; two
that are industrial and one that is commercial. And in
each case, the city has developed strong relationships
with individual companies. “In the case of our
AT A GLANCE
WHO:
Rochester, New Hampshire
WHAT:
A city of 30,000
WHERE:
Southwest, New Hampshire, 80 miles
north of Boston
WEBSITE
:
