Creation of TID 14 a good move for future of city, region
In the hands of a skilled surgeon, a sharp scalpel is a lifesaving tool.
When used with skill and precision, tax incremental districts can be equally as effective in bringing new life to communities.
The city of Medford has started the process of creating Tax Incremental District No. 14. On Monday, the Joint Review Board met and the city planning commission gave its stamp of endorsement to the project plan.
TIDs are economic development tools where, rather than property taxes being split between different layers of government, the total amount of taxes collected on improvements in the district are kept by the city to pay for development costs.
Medford has successfully used TIDs for decades to expand its industrial and retail base. Now, the city is focusing on using the tool to expand housing opportunities in order to grow the city’s economic base.
Statewide communities have had mixed success with TIDs. Some, like Medford’s, have been successful, others have been less so. A major part of the city’s success with TIDs is the focus on project specific districts with a clear anchor which will cash flow the project. This model has proven successful over the years with TIDs involving Nestle, Marathon Cheese, Walmart and others, assisting with expansions and benefiting the entire region.
Luck is always a factor in economic development. However, has the saying goes, “Luck favors the prepared.” The city of Medford’s economic strategy as been to use past success as a stepping stone for future growth. While there have been the occasional setbacks, by keeping the TIDs focused and relatively small, the city has been able to minimize risk.
In the process of creating the new TID, the city will be closing the wildly successful TID 12 and TID 8, putting the millions of dollars of improvements that have occurred in those districts onto the general tax rolls. This will be a boost to overlying taxing districts who already have been reaping the economic benefits of the jobs created in these districts. It is the attraction of these jobs that has allowed the city and county to maintain its populations at a time when rural counties across the state are losing residents.
The proposed TID will focus on redeveloping what had been planned for industrial expansion along Pep’s Drive south of CTH O into a residential area with apartments to the north and single family homes to the south. This will provide much-needed housing opportunities while bringing city-owned land back on the tax rolls and into productive service. The city council and representatives from the overlying taxing districts should quickly move to approve the creation of this TID and help bring the next era of economic growth to reality.
