Memphis Officials Use Tax Increment Financing to Fix Blighted Areas, but Not the Same Way Nashville Does

 

Memphis officials are mandating that a select group of taxpayers pay into a Tax Increment Financing fund designed to revitalize the city’s blighted areas.

But, unlike what Nashville does, Memphis has a different version of TIF, said Andrew Murray, director of planning and community development for Memphis’ Community Redevelopment Agency.

According to its website, the CRA oversees the TIF revenue.

As The Tennessee Star reported, Nashville officials use TIF to award special tax incentives to real estate developers to spruce up supposedly blighted parts of town.

“Our purpose and our statue is a little different than how they do it in Nashville. The TIF districts that we have here with the CRA are community-led, so there is a community plan, and then the residents of the community have a say in how the money is spent,” Murray told The Star.

“So, yes, it’s the same mechanism, but it’s kind of a different purpose. Our purpose is for fixing blight and providing affordable housing. Basically, we do neighborhood rebuilding.”

In Memphis, TIF revenue pays for more alleys, roads, lights, cameras, affordable housing units, and parks, Murray said.

Nobody gets their taxes waived — although people in a TIF district generate revenue by paying property taxes, Murray said.

“These people are paying property taxes they have already paid,” Murray said.

“It just gets captured and reinvested in the neighborhood that they are in.”

The CRA has $95 million to spend during a 14-year timespan, Murray said. The majority comes from Harbor Town and Mud Island, which Murray said has a new housing development on the Mississippi River.

Members of the Memphis City Council are currently discussing whether to expand TIF between St. Jude and Le Bonheur around Carnes to include Smokey City and New Chicago, according to a recent council newsletter.

“The expansion of this TIF will ensure that funds for development include areas of Smokey City and New Chicago,” according to the newsletter.

“The discussion of this item will continue at our next Council Meeting on August 6.”

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Chris Butler is an investigative journalist at The Tennessee Star. Follow Chris on Facebook. Email tips to [email protected].
Photo “Memphis City Hall” by Thomas R Machnitzki.  CC BY 3.o.