Two midtown Gainesville developments will be aided by tax incentives from the city after the Gainesville City Council approved them for the city’s Midtown Tax Allocation District at a Tuesday meeting.
Properties that are approved for a tax allocation district are taxed at the rate established in the TAD’s base year, which is 2006 for the city’s midtown district. When a property is developed, its value will go up, and so will its taxes. The higher amount paid in property taxes instead goes into the TAD fund for the agreed time. Developers or property owners can use money from the TAD fund to pay for improvements to the property.
The Enclave, a townhome community in midtown, already has 45 homes but will soon get an additional seven homes on Wills Street. The expansion will receive about $93,000 in TAD funding, with $25,000 of the funding given upfront for demolition and grading and the remaining $68,000 would be paid in increments annually over a maximum of 15 years.
The other development is a commercial space at 743 Main St. Lamb, Britt, Gilmer and Associates, a sales and marketing company, has plans to relocate within Gainesville to the space. $75,000 will be paid upfront, and once that amount has been replenished by the TAD increments generated, the applicant can then keep the extra funds generated above the base value. The project can remain in the TAD for a maximum of 15 years.
The TAD funding was approved unanimously as part of council members’ consent agenda Tuesday.