Huntsville is proposing up to $230 million in infrastructure investments for its rapidly developing western corridor, including a new school, major road projects and improvements surrounding the future $6 billion-plus Eli Lilly campus.
The proposed Tax Increment Financing district, known as TIF 8, encompasses nearly 9,092 acres of Huntsville-annexed Limestone County on both sides of Interstate 565.
The Huntsville City Council is expected to vote on the district Oct. 8.
Under the proposed project plan, Huntsville has identified 11 projects totaling up to $230 million, with transportation accounting for much of the investment.
The largest individual project is a $50 million widening of Swancott Road, followed by $40 million for relocating and upgrading County Line Road.
Another $40 million is designated for construction of a new K-8 school, with an additional $15 million for a new road to serve the school.
Other proposed projects include $15 million for improvements to the Interstate 565 Exit 3 interchange at Alabama 20; $10 million each for Pryor and Peoples roads; $8 million for Greenbrier Parkway and Greenbrier Road improvements; $15 million for sanitary sewer expansion; and $5 million for improvements to Fire Station 18.
The plan also includes $22 million to acquire land for a 21st Century Manufacturing Zone. The city said the acquisition would fall under Alabama’s Major 21st Century Manufacturing Zone Act and is intended to encourage additional job creation and private investment.
The proposed TIF district includes the site of Eli Lilly and Company’s planned pharmaceutical manufacturing campus, an investment of more than $6 billion.
“The western corridor of Huntsville continues to be an area with ample land to create new jobs and induce future private investments,” Mayor Tommy Battle said. “By establishing this TIF 8 District and completing of the proposed public infrastructure, we believe the area will experience new investments and the creation of new jobs that will benefit, Huntsville, Limestone County, and the region.”
How a TIF works
Tax increment financing allows a city to pay for public improvements using future increases in property tax revenue generated by development within a designated area.
Rather than increasing the property tax rate, the city uses the growth in tax revenue above the district’s existing property tax base to finance qualifying projects.
Huntsville officials emphasized that establishing TIF 8 would not raise property tax rates or reduce the existing tax revenue currently flowing to Huntsville, Limestone County or public schools.
The city has identified eight areas within the proposed district that officials believe have significant potential for new investment or redevelopment following the infrastructure improvements.
Under state law, the proposed infrastructure projects would be underway within five years.
Huntsville has used TIF districts to finance infrastructure and redevelopment projects since 2000.
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