The City of Huntsville is taking the first steps toward creating a new tax increment financing district in the rapidly developing Limestone County portion of the city.

The Huntsville City Council authorized the city to prepare a project plan for a potential TIF 8 district, which would encompass annexed portions of Limestone County.

Once the draft project plan is completed, it will return to the City Council for consideration and approval before the TIF district can be created.

The proposed district comes as the Limestone County side of Huntsville continues to see significant industrial and residential growth. The area includes major employers and developments such as Mazda Toyota Manufacturing, Polaris and Amazon, as well as the future Eli Lilly manufacturing facility.

Tax increment financing allows municipalities to use future increases in property tax revenue generated by new development within a designated area to pay for public infrastructure improvements.

According to the city, creation of a TIF district does not increase property tax rates. It also does not reduce existing property tax revenue currently going to Huntsville, Limestone County or public schools. Instead, a portion of the additional tax revenue generated as property values and development increase within the district can be directed toward infrastructure serving the area.

Infrastructure needs have become increasingly important as development pushes farther into western Huntsville and Limestone County, particularly around the Interstate 565, Greenbrier and Huntsville-Brownsferry corridors.

The proposed TIF 8 area would generally extend from County Line Road on the east to Greenbrier Parkway and Pryor Road on the west, with Old Highway 20 to the north and Wall Street to the south, according to information presented about the proposal.

The district would include property both north and south of I-565, including the site planned for Eli Lilly’s new Huntsville manufacturing operation.

The City Council has also set a Sept. 10 public hearing on the proposed TIF district.

The project plan now being developed will provide additional details about the district and the public improvements that could be financed through it.

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