Tax Increment Financing
Flexible gap financing options are available for qualified real estate development projects within active Tax Increment Districts (TIDs). The City of Verona currently has two active TIDs. TID 8 includes portions of Verona Technology Park on the City's southeast side. TID 9 is located along West Verona Avenue. Municipalities utilize Tax Increment Financing (TIF) as a finance tool for infrastructure and improvement projects located within a specific, contiguous geographic area targeted for development or redevelopment. This geographical area is designated as a Tax Increment District (TID) and must have a project plan which describes the following:
- District boundaries
- Estimated project costs
- Methods of financing the project costs
- Maps identifying existing uses, proposed improvements and any proposed zoning changes
- Findings include, but are not limited to the following:
- The improvement of the area is likely to increase the value of the properties within the district
- 50% or more of the property located within the district is blighted, in need of conservation or rehabilitation, suitable for industrial use or suitable for mixed-use development
The project plan for each district must be adopted by the Plan Commission, City Council and be reviewed by the Joint Review Board. The Joint Review Board has representatives from the school district, county, technical college, the city and one public member. The TID's base value is established upon the creation of the district and the tax revenue collected over the life of the TID is allocated to the overlying tax jurisdictions the same way as before the TID was created. As property values within the district increase, the amount of tax increment generated over the base value is used to finance eligible project costs. The maximum lifetime of the district depends on the type of district, when it was created, and when the total tax increment collected exceeds to the approved project costs. Any surplus revenues at the time of termination of the district are reallocated to the overlying taxing jurisdictions.
Revolving Loan Fund
The objective of the Verona Economic Development Commission (VEDC) is to provide capital financing to encourage business development within the City. VEDC loans are intended to be used in conjunction with conventional private financing to fill in financing needs and gaps and to serve as an economic development tool to encourage business expansion, employment opportunities, and investment in the community. While encouraging development, principal and interest payments on the loans would provide for the recapitalization and growth of the VEDC.
Applications may be submitted by a sole proprietor, Chief Executive Officer, or other authorized representative of any business wishing to expand an existing operation or establish a new operation in the city of Verona. For additional information please contact Economic Development Manager, Dayna Sarver.
- Building acquisition
- Building construction, including site preparation and demolition
- Building rehabilitation or renovation
- Energy efficiency upgrades
- Land acquisition
- Machinery & equipment