TIF Isn’t a Dirty Word, Karen

TIF Isn’t a Dirty Word, Karen

Let’s talk about Omaha’s favorite four-letter word: TIF.

If you’ve ever dipped a toe into r/Omaha, you’ve seen the rage posts:

"TIF is exactly a handout of taxpayer dollars. Developers pay their loans off using tax money that would usually go into the city coffers."

Or my personal favorite:

"TIFs are tax hikes plain and simple."

There’s always a whiff of conspiracy in these — as if developers are out here stuffing their pockets with school lunch money and laughing maniacally while bulldozing city parks.

And look, I get the suspicion. It sounds shady when people say “tax dollars diverted.” But instead of screaming into the online void, I did something unhinged: I read actual documents on Omaha’s TIF website. With my own eyeballs.

Let’s Pick a Real Example

I picked a project I’ve walked past a hundred times — Project #28-2478, aka the Dewey Park Apartments.

A Quick Rundown:

  • TIF Term: 15 years
  • Total Project Cost: \$8,559,688
  • TIF Loan Amount: \$1,417,489 (so about 16.6% of the total)
  • New Units: 55
  • Rents: Supposedly “below market” (read: slightly less painful)

The city’s Cost-Benefit Analysis says local businesses in Midtown, Leavenworth, and Blackstone will benefit from increased foot traffic. Dewey Park gets more activity. And we get 55 more places to live in a central neighborhood.

Honestly? That’s not nothing.

What Was There Before?

Before this, the lot had a run-down 8-unit apartment building. Nothing historic. Nothing charming. Just old housing that had clearly seen better decades — the kind of place where “updated kitchen” means “there’s a microwave now.”

So, 8 aging units in a tired building get replaced with 55 new apartments. That’s a 7x increase in housing. Density like that doesn’t fix our housing shortage overnight — but it helps.

Is TIF Legal Theft or Just Boring Policy?

Here’s what it takes to qualify for TIF:

✅ Located in a “Blighted” Area

Yes, I know how that word sounds. But it’s a legal designation under state law — areas that are underutilized or economically declining. The goal is to jumpstart investment. Dewey Park’s block? It qualifies.

✅ No Loss of Existing Tax Revenue

This part is wildly misunderstood. TIF doesn’t touch the taxes the city, schools, and county were already getting. Those keep flowing. TIF only redirects the new taxes that result from the project’s increased value. It’s a slice of the future pie, not today’s lunch.

✅ “But-For” Test

The developer has to prove the project wouldn’t happen but for TIF. This is where things get murky. It’s not always crystal clear if a project is truly on the edge of viability — or if developers are just padding the pro forma. Transparency here could use a glow-up at the minimum. Even so, I'd be more forgiving of anything that ups the amount of housing in the city, prices right now are ridiculous.

✅ Alignment with the City’s Master Plan

TIF projects have to support things like infill development, walkability, housing diversity, and revitalization. Basically: “Don’t just slap down a strip mall in the middle of downtown.” For the love of God, we have enough vapes. Dewey Park checks the boxes.

Where Does the Money Actually Go?

Let’s clear up the biggest myth: TIF isn’t a city grant. It’s a private loan.

A developer borrows from a bank. Then the city says, “Cool — we’ll let you use the extra property taxes generated by this project to help repay that loan.” Meanwhile, the base property tax keeps flowing to schools, emergency services, etc.

After 15 years? The city gets all the tax revenue — the base and the new growth.

So no, it’s not a raid on the general fund. It’s a structured delay of taxes that in theory wouldn't have been generated without the project.

Here’s what that looks like:

Look, its a chart!

Okay But — Who Really Benefits?

Let’s not pretend TIF is flawless. Even well-meaning projects can have side effects:

  • Developers sometimes get TIF they don’t need. Just because a project qualifies doesn’t mean it wouldn’t have happened anyway.
  • Gentrification is real. Replacing older buildings with market-rate units can push out longtime residents.
  • Local flavor gets polished off. The more “new” a neighborhood gets, the more chain coffee shops replace the quirky ones with sticky floors and weird art.

Dewey Park isn’t a poster child for displacement — but the pattern matters. We should be vigilant about how these projects affect the fabric of the city, not just the skyline.

So… Is TIF Good?

Depends on how it’s used.

When done right: TIF encourages dense, urban development. It fills in underused space. It helps us grow without expanding our footprint and burning money on more roads to nowhere.

When done wrong: It hands money to developers who don’t need it, subsidizes luxury projects, and quietly reshapes neighborhoods in ways that leave people behind.

The tool isn’t the problem. But how we wield it? That’s worth talking about.

Final Thought

TIF doesn’t steal from your kid’s classroom or take money from fixing potholes. It’s not a tax hike. And it’s not free money, either.

It’s a financing tool that can help Omaha grow smarter — if we demand better transparency, stronger accountability, and real public benefit.

Let’s stop yelling, start reading, and maybe save the pitchforks for when they even think about touching biking infrastructure.

Stay thoughtful, Omaha.