By Alyssa Schnugg
News editor
alyssa.schnugg@hottytoddy.com
Roads leading to Oxford Commons could soon see some improvements now that the city of Oxford and Lafayette County have agreed to work together on a creative funding mechanism called Tax Increment Financing, or TIF.
Construction in Oxford Commons is being stalled by the city’s ruling that only a certain amount of Certificate of Occupancy permits can be issued until improvements are made to the Highway 7 and Sisk Avenue exit.
Developer David Blackburn will pay for the improvements out-of-pocket. Once new construction in an 80-acre area around Oxford Commons is built and enough sales and ad valorem taxes are collected from those new properties to cover a bond payment, the city will sell the bonds and repay the developers.
The city and county will then repay the bond from the taxes collected from the businesses and properties built after the road improvements. However, the county will only be repaying the bond with ad valorem taxes collected on future construction since the county does not collect sales tax.
No taxes from the existing tax pool will go toward the bond payment.
The preliminary plans call for two roundabouts at each exit off Highway 7 and Sisk Avenue and other improvements to the roads in Oxford Commons.
Mayor Robyn Tannehill said Tuesday that due to a decrease in federal and state money for road projects, TIF financing is a “creative solution” for the city to be able to provide infrastructure improvements.
