Both the Cities of Farmington and Farmington Hills, through an inter-local agreement signed in 2012, provided each Corridor Improvement Authority with $30,000 annually for the first three years to jump start revitalization efforts. The initial seed money is currently the only funding available for CIA efforts.
Tax Increment Financing
Tax increment Financing (TIF) is being pursued as the primary funding mechanism for the Corridor redevelopment efforts of both communities. Once a baseline is established, TIF captures the growth in tax revenue from increased property values. These funds, rather than going to certain local taxing jurisdictions, are invested in the Redevelopment Area by the CIA to facilitate new private sector investment. Once the TIF Plan is terminated, following a period of investment and property value growth, local taxing jurisdictions once again capture 100% of the tax revenue.
Special Assessment Districts
A Special Assessment District (SAD) is a special tax on real estate within a defined area to pay for public projects where a specific benefit is realized by the real property owner.
Grants, Donations and Other Sources
The CIAs are eligible to receive donations and apply for certain grants to perform their functions. Additionally, either City Council can authorize other legally available funding options to finance the development programs.