MDRFC Real Estate Tax Freeze
Financial Incentive Available for Investment in Downtown McMinnville
A financial incentive involving property taxes is now available to investors in downtown McMinnville. The MDRFC PILOT (Payment-In-Lieu-Of-Taxes) is a real estate tax freeze that can significantly affect the financial return on investment for renovations or new construction downtown. The incentive is enough to make property owners, real estate professionals, developers and historic preservationists take 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 (State Appraisal) 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. The 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.
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:
Main Street McMinnville, Inc.
110 South Court Square, Suite B200
P. O. Box 373
McMinnville, Tennessee 37111
Phone: 931-506-5335
mainstmcminn@blomand.net