Montville, CT

Tax Increment Financing

Overview

Montville is evaluating two TIF Districts:

The Town Center District encompasses an expanse of developed and undeveloped land surrounding Town Hall, extending along the RT 32 corridor.  Its limits are depicted on the Draft Town Center District map here.  The purpose is to support a new vibrant, walkable and business rich environment developed in a cohesive New England setting.

The Gateway North District focuses at the predominately commercial district of RT 32 and RT 2A interchange.  Its limits are depicted on the Draft Gateway North District map here.  The purpose of this district is to create a welcoming gateway with infrastructure that accommodates pedestrians and vehicles in a balanced, safe and sustainable manner.

Tax Increment Financing (TIF) is an economic development financing tool authorized under Connecticut law (2015).  It was revised from a prior unusable statute.  Highlights of TIF include:

  • TIF does not create a new tax or increase the mill rate
  • It allows a municipality to reinvest future increases in property tax revenue from a defined geographic area (TIF District) back into the District
  • Not all tax revenue must be used for the district, a specific percent (i.e. 50%, 75%...) can be identified in the financing plan established by the Council
  • TIF can be used to facilitate development that may not otherwise occur
  • TIF is more than a promise to invest, it tells developers and businesses the municipality is dedicated to a specific area through TIF District adoption.
  • The District remains in place for the duration set during adoption
  • A district is adopted through a public hearing process and must be approved by the Town Council
  • The district can be modified at any time, following the same process of adoption

More information can be found here: CT Main Street Publication