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Labor Coalition, City Spar Over TIF Use

DENVER-In its third in a series of reports on tax increment financing, the Front Range Economic Strategic Center charges Denver isn't getting its money's worth. The city, however, rebuts that the income stream from developments that received TIFs would not exist if not for the subsidy.

By John Rebchook | Updated on January 03, 2006

DENVER-The City of Denver has invested more than $500 million in tax increment financing for some of the highest-profile developments in the city, such as Stapleton, the Denver Pavilions Downtown and other projects. But in the third and final installment of an analysis of TIFs, the locally based Front Range Economic Strategic Center, which has ties to labor unions and neighborhood organizations, charges the city isn’t creating the kind of jobs it should be with TIFs. However, the city and some of the retailers cited question the report’s veracity.

The group is not against TIFs, Chris Nevitt, one of the authors of the report tells GlobeSt.com. “Tax increment financing subsidies are one of the most powerful and important tools currently available to promote redevelopment of blight properties,” the report notes. “TIF is like a redevelopment credit card–we can buy new projects now and pay them off with future tax revenues.”

The report notes that like a credit card, TIF subsidies pose risks and should be used carefully. “In Denver, we have already mortgaged over $500 million in future tax revenues to pay off existing TIF subsidies to private developers,” the report claims.

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