HUNTSVILLE — On Thursday evening, the Huntsville City Council unanimously approved a new tax increment financing (TIF) district in the municipality's downtown area to help generate $220 million for various infrastructure projects.
According to the City, the TIF will not increase property tax rates and does not reduce existing tax revenues currently going to the City, Madison County or public schools. Additionally, under no circumstances will the funds generated by TIF 9 be used for any project not listed in the approved final project plan.
Funding from TIF 9 will assist with the following projects:
- Approximately $200 million for the expansion of Von Braun Center's North Hall, upgrades to the facility's food service areas, new meeting rooms, conference and exhibit space, upgraded parking, new South Hall entrances, a new access bridge, outdoor concourses, public drainage and VBC utilities.
- Approximately $5 million for Low Avenue improvements and upgrades to associated educational facilities for a new Huntsville Junior High School within the project area, including changes to an existing portion of Low Avenue from its current configuration to accommodate growing traffic. Pedestrian facilities will be updated for safety, necessary changes to public drainage and educational facilities will also be made, as well as capital infrastructure related to the construction of the junior high school.
- Approximately $5 million for renovations to the former federal courthouse on Holmes Avenue, which is also in the project area. Upgrades will be made to the "deteriorating interior components" of the building. Additionally, ADA improvements and other necessary changes to infrastructure will be made for the Madison County Commission to be able to continue providing government services.
- Approximately $5 million for the provision of funding for the design and construction of the North Huntsville Beltline Greenway System, including right of way or easement acquisition, public land, greenway infrastructure, lighting, landscape, hardscape, safety equipment, and any necessary public drainage utilities
- Approximately $5 million for a new public park associated with the U.S. HUD Choice Neighborhood Mill Creek redevelopment project. The funding will be used specifically to enclose an existing drainage channel, construct a new open space public park and install equipment. Furnishing, landscaping, lighting, and other necessary public drainage utilities and infrastructure needs will also be addressed.
By law, the infrastructure projects must be implemented within five years. Huntsville has 30 years to pay off the $220 million under the new district structure.
The Madison County Commission approved the establishment of TIF 9 at a July meeting.
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