MDRFC Real Estate Tax Freeze
New Financial Incentive Available for Investment in Downtown McMinnville
A new financial incentive is now available to investors in downtown McMinnville. The MDRFC PILOT (Payment-In-Lieu-Of-Taxes) is a new real estate tax freeze is generating a buzz among property owners, real estate professionals, developers and historic preservationists who are taking a second look at downtown McMinnville as a prospect.
The PILOT Program was created by Main Street McMinnville, McMinnville’s downtown revitalization organization, to increase business recruitment and retention opportunities through investment in the historic buildings and new construction. It creates a tax freeze on both city and county real estate taxes at pre-development levels for up to 15 years in exchange for at least a 60% investment of the appraised market value of building or raw land for new construction (some restrictions apply). The cooperation of the City of McMinnville and Warren County is a key component that is generating new economic opportunities for the entire area.
The PILOT Program is operated by an organization called the McMinnville Downtown Revenue Finance Corporation (MDRFC) under the same legislation that authorizes an Industrial Development Board (IDB). The MDRFC is narrowly defined by both focus and geographic location so as not to compete, but compliment the IDB. The MDRFC concentrates on investment in commercial development in and around downtown McMinnville while the IDB concentrates on county-wide industrial development. After more than four years of planning, the new incentive became effective in February 2007.
The McMinnville Downtown Revenue Finance Corporation was modeled after programs in Jackson and Memphis, the only other cities in Tennessee with similar programs. Both cities have experienced wide-spread reinvestment in their central cores. Jackson even recovered from a devastating tornado that destroyed much of their downtown. MDRFC Chairman, Michael Chrisawn, says “It is evident by the success of their programs that a Revenue Finance Corporation has had a positive affect on the on-going redevelopment of their downtown.”
For more information, please see:
MDRFC Tax Freeze FAQs
MDRFC Boundary Map
MDRFC PILOT Application (PDF)
SAMPLE PRO FORMA (PDF)
The McMinnville Revenue Finance Corporation is administered by Main Street McMinnville.
Contact:
Chris Wilson
Executive Director
110 South Court Square, Suite B200
McMinnville, Tennessee 37110.
Phone: 931-506-5335
mainstmcminn@blomand.net