- Development Services
- Economic Development
- Office Incentive
The City of Grimes offers a Tax Increment Financing rebate to eligible individuals/entities for new taxable value added from office developments that meet certain minimum requirements.
The Tax Increment Financing Rebate shall be offered for up to a maximum of ten years, at the following schedule:
- Years One (1) thorough Six (6) - 100% Tax Increment Finance Rebate
- Year Seven (7) - 80% Tax Increment Finance Rebate
- Year Eight (8) - 60% Tax Increment Finance Rebate
- Year Nine (9) - 40% Tax Increment Finance Rebate
- Incentives shall be for office uses only. Mixed use development which includes office and retail uses may be eligible if the predominant use is office (minimum 90% floor area)
- Eligible projects must demonstrate an ability to achieve an assessed valuation of no less than one million dollars ($1,000,000.00) per acre when fully constructed.
- Incentives for multi-story development will be favored.
- Incentives are only applicable to new construction, or substantial expansions/additions.
- Redevelopment projects are eligible, if existing buildings within the development project are removed, and overhead utility service lines are buried or replaced.
A developer acquires a property for development. Upon the property exists a single-family house. The developer demolishes the house, and the land is valued at $100,000. The developer proposed a 3-story, 50,000 square foot office building, with 5,000 square feet of ground floor retail. The County Assessor estimates the value of the development at $12,500,000.
Therefore, the property has an incremental value of $12,400,000. The TIF rebate will only be applied to the incremental value of $12,400,000.