CRYSTAL CITY, VA-Arlington County Board has approved the creation of a Tax Increment Financing area and fund that will be used to pay for infrastructure improvements laid out in the Crystal City Sector Plan. It is the first time Arlington County is using such a tool to finance large-scale infrastructure improvements. Crystal City BID president and CEO Angela Fox says it is Arlington County's first concentrated direct investment in Crystal City.

TIFs are appealing to local investors because essentially they keep tax dollars within the jurisdiction from which they were collected--a sometimes sore point in Northern Virginia--without increasing the overall tax base. The amount of TIF revenue is determined by setting a baseline assessed value on Jan. 1, 2011 and in each subsequent year tracking the incremental increase in assessed values relative to the base year.

Up to 33% of increment real property tax revenues would be dedicated to infrastructure improvements including a significant portion of the streetcar line. Basically, any infrastructure that is county-oriented is fair game, Fox tells GlobeSt.com. “Water, sewer, electrical and roads are likely prospects and, hopefully, green investment,” she says. More than likely the TIF will draw in about $250 million based on rough estimates.