The Madison County Commission voted Wednesday to approve the City of Huntsville’s proposed Tax Increment Financing district, clearing a key hurdle for a plan to help fund a $200 million expansion of the Von Braun Center and several other downtown infrastructure projects.

The approval allows the City of Huntsville to move forward with creating its proposed TIF 9 district, which city leaders unveiled earlier this year as a financing mechanism for major public improvements across downtown and north Huntsville.

Under Alabama law, a Tax Increment Financing district allows a municipality to use future increases in property tax revenue generated within a designated area to pay for public infrastructure improvements. The program does not increase property tax rates but captures the incremental growth in property tax values created by new development.

The proposed TIF district encompasses approximately 3,700 acres of Huntsville’s central downtown area.

City officials have proposed directing about $200 million generated through the district toward a major expansion of the Von Braun Center, including more than 100,000 square feet of new event and exhibit space, additional meeting rooms and conference facilities, parking improvements and related infrastructure.

Another $20 million would fund four additional public projects, including renovations to the former federal courthouse on Holmes Avenue for future Madison County Commission offices, construction of the North Huntsville Beltline Greenway, development of a public park connected to the Mill Creek Choice Neighborhood redevelopment and roadway and pedestrian improvements along Lowe Avenue associated with the future relocation of Huntsville Junior High School.

The county’s approval came after weeks of discussion over the financial impact the district could have on Madison County and local school systems, which will forgo future incremental property tax growth generated within the district during the life of the TIF.

The county itself is pursuing several major capital projects, including construction of a new courthouse estimated to cost approximately $100 million.

The City of Huntsville has used Tax Increment Financing districts since 2000 to support economic development and public infrastructure projects throughout the city.

With county approval secured, the Huntsville City Council is expected to consider final action on creating the TIF district during its July 9 meeting. City officials have also indicated future council votes will be required as financing for the projects moves forward.

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