Tax Increment Financing (TIF) is one of the most popular tools used by state and local governments to foster local economic development. Under this approach property tax revenue generated by development in a TIF designated area is deposited into a special fund and is used to pay for public improvements within that same TIF designated area or zone. When it comes to assessing outcomes of TIF practices, the literature has been preoccupied with the notion of effectiveness typically measured as an increase in property values. Furthermore, these evaluations of TIF have yielded consistently mixed results. There has been little evaluation of the process by which TIF outcomes are a function of a community’s redevelopment needs, goals, and adopted policies and projects.

First, this study explores the types of redevelopment policies, programs and projects that are being financed through the use of TIF funds in Florida. Second, this study seeks to determine if the selection of TIF supported redevelopment is a rational function of a community’s redevelopment needs and goals. Both objectives are achieved through a content analysis of state-mandated TIF-related redevelopment documents for a large sample of Florida TIF districts. More specifically, this research has identified 241 TIF districts in the state of Florida. 108 Findings of Necessity or blight studies and 172 redevelopment plans have been collected as part of this research effort.

This research developed a typology of TIF district development that enables a comprehensive assessment of the types of redevelopment activities that are intended to generate investment for local governments. The findings from the content analysis show that the policies, programs, and projects financed by TIF in Florida occur under eight categories: basic services infrastructure, transportation infrastructure, urban design, housing, land development, business development, neighborhood and community development, and destination development. The research findings also suggest that there are few links between the data collected to establish a TIF district and the selection of redevelopment policies, programs or projects. Taken together, the research findings indicate that a reconsideration of the legislative requirements necessary to establish a TIF district is in order.