It’s time for TIF reform in New York State. TIF stands for “tax increment financing,” a community development vehicle that is widely used in states other than New York. While we’re one of the 49 states with a TIF law, ours is hardly ever used.

But most of you still don’t know how this works. The idea behind a TIF makes a lot of sense. Let’s take Midtown Plaza as an example. Here’s a prime piece of real estate in the middle of Rochester that is just waiting to be developed. Oh, there’s an asbestos-laden, largely empty, decaying shell in the way? Well, in the tradition of economists everywhere, let’s just assume that the building is gone. THEN we’ll have a nicely located, developable parcel. And that parcel, being developed, will generate tax revenue. And the land around it will generate more tax revenue, as it no longer sits next to a nearly-empty eyesore.

ASSUMING we could get rid of the building. Read the rest of this entry »