ABQ Times

The Albuquerque City Council has approved an ordinance, O-24-68, amending the city's Metropolitan Redevelopment Agency Ordinance concerning Tax Increment Financing (TIF) guidelines. The ordinance establishes specific steps for the Metropolitan Redevelopment Agency to follow when submitting TIF requests for City Council approval. The measure passed with a 6-3 vote.

Councilor Renée Grout commented on the ordinance, stating, "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." She emphasized the importance of reinvesting tax-based dollars within district boundaries to support struggling businesses.

Metropolitan Redevelopment Areas have been instrumental in improving blighted neighborhoods. This new policy framework applies exclusively to TIF districts, leaving existing practices in other MRAs unchanged. TIF Districts within these areas reserve investment funds by allocating a portion of property taxes and gross receipts taxes for direct reinvestment. The ordinance mandates that each proposed TIF must include an Initiation Resolution producing an action plan, which will incorporate public input and require final approval by the City Council.

The ordinance introduces citywide policies, procedures, and criteria for the Metropolitan Redevelopment Agency's use of Tax Increment Financing:

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 remain current and supported by an action plan if they include an approved TIF.

4. Ensure continuity of TIF redevelopment activities despite changes in administration, staff, and political leadership.

Metropolitan Redevelopment Areas are established for 20 years, often outlasting the elected officials who created them. The new procedures aim to better estimate revenue over a TIF's lifespan while requiring regular financial reports and performance metrics, including a midpoint review of goals achieved and fund allocation.