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TIF extended for retailer
POCATELLO - In an effort to draw an undisclosed large retailer to the area, the duration of the North Yellowstone Tax Increment Financing District was extended by a decade Wednesday.
The area under consideration by the business is located west of Chili's restaurant near the corner of Yellowstone Avenue and Flandro Drive and is speculated to be the site of a Costco Wholesale warehouse. During the Pocatello Development Authority meeting, however, city officials, wouldn't identify the name of the business considering coming here. ''We have been working closely with a company that wants to locate there,'' said Robert Chambers, the city's Planning and Development Services director.
The North Yellowstone TIF district was created in 2004 to promote commercial development in that area, also home to the new Pocatello Square Subdivision, anchored by Lowe's Home Improvements. The original term of the TIF was 14 years, but the PDA, which administers the city's TIFs, agreed to extend it to 24 years. In a TIF district, property taxes generated from enhanced property values due to development are diverted from the general taxing rolls and used to finance infrastructure in a designated area. Once the infrastructure is paid in full, the TIF can be retired.
PDA has agreed to allocate $1 million from the North Yellowstone TIF to assist the possible incoming business. The land involved was purchased from the U.S. Forest Service by a group of developers from California. The city then bought the land and turned it over to Salt Lake City-based PEG Development.
The PDA agreed to work with PEG Development to prepare the parcel specifically for a future tenant. Although PDA Chairman Steve Brown agreed to the TIF extension, he expressed concern about using the maximum 24 years as the term.
''Twenty-four months doesn't sound bad, but 24 years is a lifetime,'' Brown said. ''Like we always do, we'll try to pay this off as quickly as possible.'' Mayor Roger Chase, however, wasn't concerned about the extension because of the city's success in quickly retiring TIFs.
''It's our tradition to retire these early,'' he said. ''We understand how to use them, and once they've served their purpose, we retire them.'' Article RatingReader CommentsSubmit a CommentCommenting RulesWe encourage your feedback and dialog. All comments are subject to deletion by our Web staff.
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