Business View Magazine - November 2016

Business View Magazine - November 2016 129 commercial, retail, and industrial ventures. In addi- tion, the city government, via its Economic Develop- ment Office, has implemented a specific strategy – the creation of Tax Financing Incentive (TIF) districts - in order to cultivate the growth of new businesses. Through the use of TIFs, municipalities typically divert future property tax revenue increases from a defined area or district toward an economic development proj- ect or public improvement project in the community. Pollard explains that once a TIF district is delineated, a baseline is set for what the value of the district is prior to development. “Once development occurs, you’re measuring the difference between the original value balance of the district and the post-development value of the district. And then, you’re capturing that incre- ment in tax revenue,” she says. Instead of putting those future real estate tax increases into the city’s general fund, they’re used to re-pay the monies that are bor- rowed for the infrastructure improvements within the district. “We take that increment – the new value in tax revenue - and pay the bond for all the roads, and water, and sewer extensions, and new traffic signals.” Rochester has created three TIF districts, so far; two that are industrial and one that is commercial. And in each case, the city has developed strong relation- ships with individual companies. “In the case of our AT A GLANCE WHO: Rochester, New Hampshire WHAT: A city of 30,000 WHERE: Southwest, New Hampshire, 80 miles north of Boston WEBSITE : www.rochesternh.net