November 17, 2023
Today's episode of "Can We Believe the Arena-Entertainment District Hype"
No so long ago, in our own Norman community, City Council was forced to negotiate a very bad deal to end the UNP TIF siphon from the general fund. 25 year deals are highly risky and ill-advised.
A little reminder about the risk of TIF which diverts sales taxes. Unless the TIF is used to create NET NEW activity (as opposed to moving where activity occurs) and the increase in taxable sales covers the expenditure (including financing costs) then TIF will take a bit out of the general fund budget.
Don't be fooled by the narrative that TIF does not come out of the general fund. Fact is, the $ is diverted before it gets to the general fund thus reducing general fund revenues.
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