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Urban renewal is a tool used by local governments across the country to address the deterioration and conditions of blight within urban areas. Urban renewal can be used for development and rehabilitation when blighted conditions act as a barrier. It is a method for restoring economic vitality and improving the health and safety of urban areas.
Tax Increment Financing is a public financing tool used to subsidize municipal economic development projects. When a TIF district is established, the amount of property and sales tax generated is set as the district’s base amount. As redevelopment takes place, any tax collected above the base amount is reinvested into the area to fund urban renewal projects and improvements.
LURA’s involvement is essential because projects have unique challenges when blighted conditions are present. Contamination can burden previously developed sites through years of neglect, requiring significant work to restore their potential. Without urban renewal, it would be harder for property owners to tackle the challenges associated with redevelopment or rehabilitation.