Duluth, MN (NNCNOW.com) --- Wednesday night the Duluth Economic and Development Authority approved a financing plan for new development along the city's waterfront .
Developers of the 'Silos at Pier B' say tax increment financing is necessary for the project because of extra funds needed to pay for contamination clean-up and seaway wall repairs.
The pending approval of the TIF plan is the last piece needed for financing for the project to come together.
Officials say the value of the property will rise once construction begins, but with a TIF in place, tax payers won't feel the burden.
"That increment that you would have been paying, that additional amount, goes back into the property. So we pay our taxes but twice a year that money comes back to the project that we are then able to use to pay on the debt service, to pay those additional funds that we had to borrow just to get the property back into a state that we can build on," said Alex Giuliani, co-developer of the project.
The TIF plan will have to get approval from the City Council.
Posted to the web by: Elsa Robins