Essentially, the TIF districts trap any new property revenues generated from improvements that would otherwise go to the city, county and school board. Instead, those gains are deposited into a bank account controlled by the city to fund public projects like roads, sewers or parks within, or nearby, that designated zone, and to repay any debt the city incurs as a result.
After the term expires, all that new revenue lands back into the coffers of those participating in the TIF project.
If approved, the Cooper River Bridge TIF, set to expire in 2032, would extend through 2042; and the Morrison Drive TIF, which is set to end in 2049, would run through 2059.
“There’s not a lot of life left on those two TIFs,” Cogswell told a City Council committee last month while trying to get them on board. “A big funding source for that vertical (construction) and the infrastructure needed would be those two TIFs.”
Cogswell said he wants the city to partner with a private developer to build on the Morrison Drive properties, and that the funds from the TIF districts could not only help lay the groundwork but also subsidize affordable units there.
By extending just the county’s portion of taxes paid into the district, Cogswell said, “I do think it could be a pretty meaningful impact.”
What are the TIF districts worth?
Last fiscal year, the Cooper River Bridge TIF district generated more than $8 million, according to Charleston County tax records. About half of that total came from taxes diverted from the school district, whose participation Cogswell is not seeking to extend.
Only about $610,000 came from last year’s taxes that would have gone to the county.
Since 2017, when the current Cooper River Bridge TIF began to amass revenue, less than $3.5 million has been diverted from the county, according to a Post and Courier analysis of county tax records.
Property taxes are only captured within the TIF district once the city issues bonds, which is essentially borrowing against the future revenue expected by the redevelopment within the district. The city is expected to incur debt in the Morrison Drive TIF for the first time this year.
