Big Sky business owners and community members are hoping to establish a TEDD in Big Sky to foster increased, infrastructural development. A TEDD, a targeted economic development district, is a district that is eligible to receive additional county taxes for improvement of its infrastructure. A TEDD defines where new developments must occur, based on the money it receives from the TIF system.
With a TIF, tax increment financing, the city would not see an increase in its taxes, despite increasing its development projects. Big Sky would be able to take part in this program by taking the incremental improvement in base property values and new construction from the expected taxable values and use that leftover money to fund developments within the TEDD.
According to the Big Sky Chamber of Commerce, the TEDD is designed to fund projects that would normally never be started. Essentially, if the project were to fail without additional funding, then and only then, can the project really be considered eligible within the TEDD.
A TEDD and TIF in Big Sky would certainly help foster economic growth in the area. For a small tourism based town, their focus on improving their own infrastructure, shows their desire to continue growing the town of Big Sky. As the economy improves, it will become more attractive to businesses and investors (whether real estate or other), helping to get the ball moving, and growing Big Sky past just a vacation real estate destination.