The primary tool provided by state law to encourage redevelopment is tax incremental financing (TIF).
This is how TIF works: An economic redevelopment area is designated with specific boundaries and a base tax year is established. Then, for a period of up to 25 years, all increases in business property taxes, not single family house taxes, in excess of the amount received in the base year go into a fund for redevelopment. That redevelopment fund is used to pay interest and principal on loans to redevelop the area. The proceeds of the bonds are used to facilitate the redevelopment of the project, sometimes for parking structures, streetscapes and other improvements.
“TIF is a Gift for Future Generations” - Carmel Mayor Brainard
Map of Carmel Clay Tax Increment Financing (TIF) Distircts (Carmel Clay only)