Innovative Financing Points the Way

The Red Line’s 25 miles of new service, though, will be made possible thanks to a combination of state contributions (25% of the cost), local sales taxes already collected by CATS (25%), and value capture (50%), which would come in two forms. A tax-increment financing (TIF) district around stations would allow increases in property values in the area to be directed toward paying back the cost of the project. This would be done with no increase in the property tax rate but rather through a redirection of increases towards the project.

~ Yonah Freemark, from Innovative Financing Points the Way Ahead for a Rail Project in Charlotte