LOUISVILLE, Ky. – A signature Tax Increment Financing (TIF) project that could produce millions of dollars for the University of Louisville has received final approval from a state agency. The Kentucky Economic Development Finance Authority today approved the plan which is designed to stimulate economic growth in an area around UofL’s Belknap Campus.
The TIF district covers more than 900 acres stretching from Belknap Campus south to the Watterson Expressway. The TIF can’t be activated until UofL invests more than $200 million in capital improvements within the TIF district. In return, UofL will receive a portion of the future, new state and local tax revenues generated over a 30-year period. The more economic activity in the area, the more UofL, the state and Louisville Metro governments will receive from tax revenues.
“This is a key component of our plans to build a new research park on the Belknap Campus,” said UofL President James Ramsey. “This will provide incentive for UofL, the state, city and area businesses to increase development and bring more jobs to the area around UofL.”
The planned 39-acre Belknap Engineering and Applied Sciences Research Park sits in the middle of the TIF district and will be a focus for the portion of tax dollars that UofL eventually receives. UofL officials estimate that the TIF could have an economic impact of more than $1 billion over a 30-year period.
This is the second TIF proposal KEDFA has approved for UofL. The first was a 210-acre region in downtown Louisville that was approved in 2007. The university activated the downtown TIF this year and is expecting $1.3 million in revenues in 2012 and increasing amounts over the next 29 years as workers’ salaries and economic activity grow.