PADUCAH, Ky. (KFVS) - More than $21 million was approved for tax increment funding in Paducah, Kentucky.
The City of Paducah announced the funding during a Kentucky Economic Development Finance Authority meeting on Thursday morning, March 25.
The city said its TIF has the goals of revitalizing the downtown area, capturing state dollars and reinvesting local dollars and helping developers with public infrastructure costs.
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“As a city government, we look for opportunities to spark development and set the right foundation for growth, job creation, and business expansion,” said Mayor George P. Bray. “Paducah’s downtown is the heart of this city, and we want to keep it healthy by reinvesting in long-term economic success. I’m thrilled that KEDFA has provided a generous final approval for Paducah’s TIF.”
The TIF district will include a premier project that revitalizes the block bounded by Second Street, North Water Street, Broadway and Jefferson Street.
City Block, an approximately $21 million private investment, includes the development of a hotel, parking, open space and mixed-use residential buildings.
In August 2019, the city received preliminary approval from KEDFA to establish the TIF.
Tax increment financing is an economic developing tool that permits local governments to capture future increases in property and other taxes generated by new development within a geographic area.
The city said it’s not a new tax, it’s reinvestment in the district based on growth.
In Kentucky, taxes collected by the state also are eligible to be directed back to the city, which produces a new revenue source for the city.