Viewpoint: TIF and the Missoula Redevelopment Agency – fact v fiction
Mike Nugent
Misinformation and disinformation abound. As the legislative session nears its close and city elections approach, statements about the Missoula Redevelopment Agency (MRA) and Tax Increment Financing (TIF) are proliferating, many of them untrue and frankly some in bad faith. It’s time to clarify what the MRA can and cannot do, and to underscore its true value to Missoula’s future.
Some suggest that the TIF funds managed by the MRA can be used to solve all of Missoula’s challenges. This is simply false. State statutes are explicit: TIF cannot fund general operations and may only be spent on specific costs within urban renewal districts. Regardless of your position on the issue, the MRA cannot legally fund operational costs for a shelter, and it is misleading and unfair to imply otherwise.
TIF exists in state law for the purpose of local economic development. Funding social services or other discretionary city services is not permitted under state statute; this is not a City Council decision, but a matter of law. TIF works by assisting private projects to generate new tax increment, which then funds public improvements. Without private investment, there would be no increment to invest in the public good.
A common talking point is that TIF in Missoula is used solely to fund banks, hotels, or luxury condos. The facts tell a different story. Since 1978, the MRA has invested in over one mile of water mains, 18 miles of sidewalks, 94 acres of park improvements, eight trail miles, nine bridges, ten street miles, and contributed to 2,546 housing units, dedicating over $28.9 million to infrastructure supporting housing. The equation is simple: supporting infrastructure around projects that generate tax increment is what allows for these broader public investments.
In recent years, the city has used remittances from the MRA to help balance the budget. While this tool exists, it is neither sustainable nor realistic as a recurring funding source for specific programs. Here’s why: when a remittance is taken, the percentage of tax that would go to each taxing jurisdiction is returned to that entity. Instead of the City of Missoula utilizing 100% of each TIF dollar for economic development, the city receives only about 30 cents of each dollar through remittance.
If the city wanted to remit $2 million for shelter operations, it would require a total remittance of $6.75 million at a time when uncommitted funds across all Urban Renewal Districts in Missoula total just $9.78 million. Contrary to claims from some politicians, much of what comes through the MRA is already committed to infrastructure investments and economic development, either completed or underway.
TIF enables Missoula to plan and invest for the future, identifying infrastructure gaps and leveraging private investment to advance public infrastructure such as sidewalks, trails, streets, lighting, utility lines, and, most recently, workforce housing. TIF can be controversial, but it is essential that public conversation be grounded in facts, not misinformation.
The bottom line: TIF and the MRA are powerful tools for Missoula’s economic development and public infrastructure, not a catch-all funding source for every city challenge. Let’s keep the conversation honest, factual, and focused on building a stronger Missoula for all.