within an established commercial district. It allows communities that already have Downtown Development Authorities (DDAs) to extend similar benefits to aging commercial corridors outside the DDA district or that extend through more than one municipality. A CID is designed to assist economic development and redevelopment in established commercial districts. It allows communities to combine tax dollars from a variety of sources to leverage economic development dollars.
Specifically, this Act allows TIF to be used for commercial and economic growth in commercial districts in cities, villages and townships. Local units can use taxes arising from increased property values through TIF to pay for improvements to commercial areas along arterial or collector streets and roads. Corridor improvements may include improvements to the land, as well a constructing, rehabilitating, preserving, equipping or maintaining buildings within the development district for public or private use. These improvements may be financed initially through bonding, which may be repaid from the enhanced property tax revenue stream, special assessments and fees.