The City is exploring a Tax Increment Financing District to promote redevelopment of two mixed use neighborhoods. Simplified, TIF Districts leverage the increased tax assessment that is realized over a baseline assessment value. The tax revenue generated is placed into its own account and can be reinvested into the District for public infrastructure improvements (i.e. utilities, streets, walks, recreation, etc.), used to assist with private development, or moved into the general fund for other purposes.
The City is exploring a TIF district along the Thames/Bridge Street corridor from I-95 to Eastern Point Road and extending through the Five Corners area to Clearance B Sharp highway. Please refer to the map below. While still in draft form and evolving as research continues, the districts are subject to approval by City Council.
There is a process which the City must follow in order to establish a TIF district. First, a policy must be created to guide the parameters of establishing the district and how it will be managed. The City has drafted such a policy and the City Council approved it on September 4, 2018. The next step is to create a master plan for the district. The master plan is a written document outlining the types of projects and initiatives funds will be used for and description of the long term vision for the district. The master plan must also be established by a vote of the City Council and through a public hearing process.
The Town of Groton may also participate in the approval a TIF master plan. Through the Town’s participation the full assessed value can be utilized. If the Town does not participate, only the City’s assessment can be used for the District, which is a significantly small amount in comparison to the full assessed value.