Tax Increment Financing Plan Approved By County Leaders For Northgate Mall

northgate-mall-entranceThis week the Coffee County Commission met and approved by a vote of 21-0 a Tax Increment Financing plan (TIF) for Northgate Mall in Tullahoma. The infrastructure improvements are designed to finance these projects through future property tax abatements. The approval is for 10 years instead of the 14 requested by Tullahoma Area Economic Development Corp.
In addition to the proposed public improvements of up to $1.8 million, Northgate LLC plans to invest an additional $12-14 million in upgrades to the mall itself in an attempt to attract new, higher-end retailers.
The $1.8 million portion designated for government financing involves upgrades that benefit the public, such as paving, drainage improvements and landscaping. The remaining $12 million or so of improvements are designed to enhance the mall’s commercial appeal to attract more and better stores.
According to the Tullahoma Area Economic Development Corporation, tax-increment financing is a way for counties and municipalities to attract retail and other types of development at minimal risk to the taxpayer and reduced cost to the developer at the same time.