The city of Urbandale says one area of town needs major improvements, but money to pay for the program could come out of your pocketbook.
It's called TIF, or tax increment financing, and the city says it will help attract new businesses and money to their city by sprucing up and making improvements to the area. However, you could end up fronting some of the cost, and there's no guarantee the program will be successful.
Here's how it works: the city would freeze the value of a parcel of land for a certain amount time, usually 10 to 20 years. They then would make renovations in the area. Every year that the value of the land goes up, the city takes that money and uses it to pay off the money they borrowed for the improvements.
"We feel like there's some ways over time to we can make some improvements in the corridor here on Merle Hay Road," says Urbandale city council member Mike Carver.
City leaders want to put Merle Hay Mall, and the area of land west of Merle Hay Road from Aurora Ave. all the way to the freeway in the TIF program. They say they need to make improvements the area now, in order to attract more businesses and shoppers to the area in the future.
"Anything we can do to encourage and promote redevelopment and strengthen business in the area, if we can help through the TIF program we want to do that."
It's worked in Urbandale before. In 1995, the city put the area around 70th and Douglas Ave. on the TIF program. They added street lights, repaved the road, and beautified the area, and it attracted new businesses, who built brand new buildings.
"The idea of TIF is very good. It can spur economic development and improvement in areas most of the time," says Jeff Riece, President of the Des Moines Polk Tax Payers Association.
Reice says the TIF program is a good fit for Urbandale. The city already has great attractions, but a little sprucing up could pay off in a big way down the road.
"If the plans are good people should come. Just like the Field of Dreams baseball field in Iowa, if they build it people should come."
Here's the risk: Riece says residents in Urbandale will see their property taxes increase until the TIF pays off. He says it's a short term investment in hopes of a long term payoff. The only way it would fail, he says, is if the value of the land in Urbandale decreases over time.
The council will discuss the idea during a public forum during Tuesday's city council meeting.
It's called TIF, or tax increment financing, and the city says it will help attract new businesses and money to their city by sprucing up and making improvements to the area. However, you could end up fronting some of the cost, and there's no guarantee the program will be successful.
Here's how it works: the city would freeze the value of a parcel of land for a certain amount time, usually 10 to 20 years. They then would make renovations in the area. Every year that the value of the land goes up, the city takes that money and uses it to pay off the money they borrowed for the improvements.
"We feel like there's some ways over time to we can make some improvements in the corridor here on Merle Hay Road," says Urbandale city council member Mike Carver.
City leaders want to put Merle Hay Mall, and the area of land west of Merle Hay Road from Aurora Ave. all the way to the freeway in the TIF program. They say they need to make improvements the area now, in order to attract more businesses and shoppers to the area in the future.
"Anything we can do to encourage and promote redevelopment and strengthen business in the area, if we can help through the TIF program we want to do that."
It's worked in Urbandale before. In 1995, the city put the area around 70th and Douglas Ave. on the TIF program. They added street lights, repaved the road, and beautified the area, and it attracted new businesses, who built brand new buildings.
"The idea of TIF is very good. It can spur economic development and improvement in areas most of the time," says Jeff Riece, President of the Des Moines Polk Tax Payers Association.
Reice says the TIF program is a good fit for Urbandale. The city already has great attractions, but a little sprucing up could pay off in a big way down the road.
"If the plans are good people should come. Just like the Field of Dreams baseball field in Iowa, if they build it people should come."
Here's the risk: Riece says residents in Urbandale will see their property taxes increase until the TIF pays off. He says it's a short term investment in hopes of a long term payoff. The only way it would fail, he says, is if the value of the land in Urbandale decreases over time.
The council will discuss the idea during a public forum during Tuesday's city council meeting.
