Huntsville closes out 3 TIF districts years ahead of schedule

HUNTSVILLE — In a demonstration of Huntsville’s economic resiliency, the city closed out three tax increment financing (TIF) districts years before the due date, officials announced. On average, the three TIF districts closed 13 years early, completing the $31.4 million payoff.

Huntsville has now closed out five of its eight TIF districts.

“To be able to pay off these TIFs well ahead of schedule is a monumental achievement,” Mayor Tommy Battle said. “Students and residents in Huntsville have been beneficiaries of this success and providing those opportunities is a goal we strive to reach every day.”

TIF districts, located throughout Huntsville, are designed to stimulate economic development in designated areas and benefit schools. As development occurs, the value of property increases within the district and leads to greater revenues in property taxes.

Through a TIF, the city is allowed to use the growing property tax to pay for the improvements it made to support the development and to help pay for other public infrastructure improvements such as new schools.

The closeout of the three TIFS will send ad valorem taxes back to the appropriate entities, which in the 2025 fiscal year totaled more than $19.6 million.

The districts closed out are:

• TIF 2
  Established in 2000, the TIF financed $15.5 million. The city provided $10 million to the Huntsville Board of Education through the TIF. Another objective was the revitalization of the retail district where Parkway Place now stands with the city funding a $5.5 million public parking garage. TIF2 had a required closeout in 2030.
• TIF 4
  Established in 2006, the TIF financed $30 million. The city provided $13 million to Huntsville City Schools to help rebuild Lee High School and renovate Butler High School. Other projects included the construction of Harris Hills Boulevard to incentive retail development on Highway 72 and construction/expansion of several public facilities. These included the downtown public safety precinct, the Von Braun Center and the Huntsville Museum of Art. TIF4 had a required closeout in 2036.
• TIF 6
  Established in 2015, the TIF financed $14 million. The objective was to spur economic development along Interstate 565 in western Madison and eastern Limestone counties. The area has become a manufacturing hub for north Alabama and the TIF funding covered infrastructure improvements in the area, helping attract companies such as Polaris, Mazda Toyota and Amazon.