Tax increment financing (TIF) is a public financing method that is used as a subsidy for redevelopment, infrastructure, and other community-improvement projects in many countries, including the United States. Similar or related value capture strategies are used around the world.
Through the use of TIF, municipalities typically divert future property tax revenue increases from a defined area or district toward an economic development project or public improvement project in the community. TIF subsidies are not appropriated directly from a city's budget, but the city incurs loss through foregone tax revenue.[1] The first TIF was used in California in 1952. By 2004, all 50 American states had authorized the use of TIF. The first TIF in Canada was used in 2007.
The Missoula Redevelopment Agency (MRA) is a public agency created in 1978 that operates in accordance with state law to revitalize Missoula's Urban Renewal Districts. MRA partners with public and private entities to help improve economic vitality, create jobs and encourage investment in the Districts. MRA also invests in public improvements like parks, trails, streets and sidewalks.
All decisions about MRA projects are made by a five-member Board of Commissioners who are appointed by the Mayor and approved by City Council.