Tax Increment Financing (TIF) helps certain districts fund new development using tax "increment”. 

When a TIF district is created, a property’s current taxable value becomes the “base.” Taxes from that base continue to go where they normally would. As property values increase, the additional tax revenue (the “increment”) is set aside to pay for improvements within the district.  

These improvements often include public infrastructure such as curb and gutter, sidewalks, etc., in deteriorating areas. This catalyzes the development and economic vitality of a district.   

The creation of TIF districts is authorized by 7-15-4282, MCA.

There are six Urban Renewal Districts using TIF within the City of Bozeman: 

• Downtown Urban Renewal District
• Midtown Urban Renewal District
• Northeast Urban Renewal District
• South Bozeman Technology District
• North Park Urban Renewal District
• Pole Yard Urban Renewal District

See the map for the boundaries of each district.

View the Full size map application.

Notable Projects:

Bridger Park Garage in Downtown - The Downtown Urban Renewal District is the major funding source for the Downtown Parking Garage, which opened in April of 2009. The parking garage has spurred incredible development in the surrounding area, with three new hotels and one residential condo within a one-block radius.

Conduit Fiber in Midtown - To facilitate private investment in high speed, accessible and affordable fiber optic connectivity in one of Bozeman’s most active commercial districts, the Midtown Urban Renewal District, the Board amended the Urban Renewal Plan and completed an urban renewal project to install publicly owned fiber optic conduit within the District and make that conduit available for license to private, local providers. 

5th & Main Sewer Line Project - Midtown and Downtown Urban Renewal Districts are collaborating to replace 100+ year old sewer mains that do not meet current city standards and cannot accommodate new infill development. The 5th and Main Apartments Project is located at the corner of N. 5th Avenue and Main Street. North 5th Avenue constitutes the boundary between the Midtown URD and the Downtown URD, and that boundary extends east along Mendenhall St. to N. 3rd Ave. and into the Downtown URD. Payment of the funds from the Downtown and Midtown URDs will occur when the project receives a Certificate of Occupancy upon completion.  

For more information on the Downtown Urban Renewal District, see the Downtown Bozeman Partnership.

For more information on the Midtown, Pole Yard, North Park, South Bozeman Technology, or Northeast Urban Renewal please contact David Fine at dfine@bozeman.net.