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City Ordinance Brings Accountability and Transparency for Redevelopment Tax Increment Financing

Neighborhoods can flourish through Tax Increment Financing and deserve detailed plans, goals, and objectives.
February 03, 2025

The Albuquerque City Council approved O-24-68 amending the City’s Metropolitan Redevelopment Agency Ordinance relating to Tax Increment Financing (TIF) guidelines and establishing specific steps the Metropolitan Redevelopment Agency must take to submit TIF requests for approval by the City Council.  The ordinance passed 6-3.

“The ordinance brings the accountability our redevelopment projects deserve. Proposed TIF Districts must have an action plan that includes clearly defined objectives and processes that measure and achieve those objectives,” said Councilor Renée Grout. “It can be challenging to come up with investment funds for Metropolitan Redevelopment areas, and I am fully in favor of reinvesting those tax-based dollars within the boundaries of the district, directly into neighborhoods where they can most help these struggling businesses.”

The Metropolitan Redevelopment Areas have improved blighted neighborhoods. This ordinance’s policy framework applies only within TIF districts, leaving existing practices in other MRAs unchanged. TIF Districts within the MRAs reserve investment funds by setting aside a portion of the property taxes and gross receipts taxes in those designated areas for direct reinvestment. The ordinance requires each proposed TIF to have an Initiation Resolution that produces an action plan. This action plan would have input from the public and is subject to final approval by the City Council.

This ordinance creates citywide policy, procedures, and criteria for the Metropolitan Redevelopment Agency to follow when requesting Tax Increment Financing (TIF):

  1. Establish clear communication protocols to enhance transparency and credibility with stakeholders and the public.
  2. Set consistent reporting and data tracking requirements to monitor successful implementation of activities and transforming conditions within TIF areas.
  3. Establish a framework ensuring metropolitan redevelopment plans be current and that metropolitan redevelopment areas/plans with an approved TIF are supported by an action plan.
  4. Ensure continuity of TIF redevelopment activities despite changes in administration, staff, and political leadership.

MRA’s last for 20 years, likely outlasting the elected officials who established them. The new procedures will better estimate revenue over the TIF’s life, and require regular financial reports and performance metrics, including a midpoint review of the TIF’s goals and objectives achieved and where funds were spent.