Here’s how TIF works. When a redevelopment project is being planned, DURA analyzes how much additional property and/or sales taxes should be generated once it is completed. That "tax increment" then can be used by DURA either to finance the issuance of bonds or to reimburse developers for a portion of their project financing. In either case, the new tax revenue that is created must be used for improvements that have a public benefit and that support the redevelopment effort, such as site clearance, streets, utilities, parks, the removal of hazardous materials or conditions, or site acquisition.

TIF is used only when an area or property can’t be redeveloped without public investment and when it meets a public objective, and then only to fill the gap between the total project cost and the level of private financing the project can support. In the case of developer reimbursement, the amount of money reimbursed depends on the success of the project, with the developer getting the money only if the project creates the extra value for the city.

All the additional taxes created by the redevelopment revert to the normal taxing entities once DURA has fulfilled its monetary obligations related to a project. Thus, the neighborhood benefits from the creation of revitalized, productive properties and the taxing entities get new, permanent sources of revenue that wouldn't have existed if DURA had not enabled the project to be undertaken.