What is Urban Renewal?
Urban renewal is a financing tool used to stimulate suitably-located growth in underdeveloped areas. The tool is called “Tax Increment Financing” – funding derived from the increase in taxable property values over time within an urban renewal area (URA). As property values increase within the district because of new investment and appreciation of existing property, the resulting increase in property taxes (the ‘tax increment’) is captured and used to pay off the bonds.
