Targeted Economic Development Districts or TEDDs In Montana.
TEDD stands for Targeted Economic Development Districts.
TEDDs in Montana can create jobs, reduce crime, and increase tax revenue for a community. That means better schools and more public resources.
But TEDDs aren’t above reproach. TEDD projects are incentivized through tax increment financing, or TIF. Long story short, TIF isn’t always popular.
So, why are projects in a TEDD incentivized with TIF funds? Usually, a TEDD is an area that is poised for growth. Location-wise, it’s usually a great place to build.
However, a lack of infrastructure means that no one wants to pony up to develop in these areas.
For example, while building a distribution warehouse in a TEDD area next to an interstate might make perfect sense, building the roads to access the warehouse or punching in utilities make the project too expensive.
Once a developer sees those extra costs, they decide it’s too rich for their blood and bow out.
But, if a city or county sweetens the deal by subsidizing the infrastructure costs, developers are much more likely to build in these areas.
A TEDD offers a city or county the flexibility to bargain with developers who can bring jobs, tax revenue and other improvements to an area ready to grow.
Get more info on investing with TEDDs in Montana by contacting Matt Mellott.
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