Edinburgh City Council is looking to develop its waterfront area through tax increment financing (TIF), a scheme first introduced in California in the 1950s.
It is working with Forth Ports on a pilot TIF scheme to boost development around Leith Docks. The scheme allows local authorities to borrow against anticipated future increases in business rates to fund improvements that are expected to generate those gains.
Forth Ports has outline planning permission to build up to 18,000 homes and commercial, retail and leisure facilities on the 400 acre brownfield site. The council hopes to borrow £84m over several years to invest in four key pieces of infrastructure. They are lock gates to the entrance to Leith Docks, a pier, a public esplanade and a new road.
The British Property Federation likes the idea but it warned risks could arise when the expected revenue did not arise within the time envisaged.
01/06/10 Financial Times 4
