The county Board of Commissioners has approved a Tax Increment Financing district north of the Interstate 40-Canada Road interchange, the final step in the financial benefit for the Lakeland site.

The approval came as part of the commission’s consent agenda on Wednesday, Feb. 22. The new TIF district encompasses the Lakeland Gateway area spanning the two northern quadrants of the interchange.

The gateway marks the third TIF for Lakeland and already had cleared the suburban consideration before it passed the county commission.

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“It’s a crucial area for the city,” said Commissioner Mick Wright, who sponsored the resolution. “In some ways, it’s their front door, and the condition that it’s in now it’s either undeveloped or underdeveloped.”

Wright said he repeatedly is told the area is a public safety concern. Approving the TIF could help alleviate some of those matters and improve the area.

Wright sees an opportunity to bring upscale housing and commerce to the area while also benefiting Lakeland and Shelby County. Once the 20-year TIF ends, the county would receive around $6 million annually in property taxes. Lakeland’s share would be nearly $800,000 per year, not including hotel or sales taxes generated.

TIFs have become a useful incentive to help developers and municipalities cover costly infrastructure for projects.

“I cannot overstate (this newest TIF’s) importance to our ability to re-imagine this area, whether it be acquiring property for public use or incentivizing developers to get the product we envision,” Lakeland Mayor Josh Roman said. “This is a big deal.”

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Lakeland already has two TIFs in place, one for the $400 million The Lake District mixed-use project on the southeast side of the Canada Road exit, and also for the $90 million Lakeland Town Square on U.S. 70.

“Certainly we continue to be in a challenging economic environment, and I think that’s why these kind of (TIF) packages are necessary in certain areas to be able to finance the development that needs to happen,” Wright said. “At the end of the day, this new TIF is going to generate millions and millions of dollars for Lakeland and the county and be a benefit to both as far as jobs and places to live.”

Redevelopment of the area is expected to create more than 900 permanent jobs as well as approximately 1,800 construction jobs.

Commissioner Amber Mills, whose district covers Arlington and a small piece of Lakeland, also supported the resolution.

“There’s property sitting there not generating much tax revenue, and there’s an opportunity to generate much more,” she said. “I think TIFs are a good thing. We’ve done a few for Millington as well.”

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The new TIF district will represent roughly 30 properties, the largest being the 100-acre site of the proposed $216 million Ashmont mixed-use development.

Lakeland Town Square developer Vince Smith purchased that property from developer John Hyneman on Feb. 1.

“It’s in an emerging suburban market with great home ownership and great household income — generally great demographics for retailers,” Smith said. “We were fortunate to pick up the ball here and run with it.”

The Ashmont property only generates around $1,000 per year in property tax.

To benefit from the TIF, Smith will still need to enter into a development agreement with the City of Lakeland.

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“If we’re able to get a piece of the TIF, then that would be great to use for public improvements,” Smith said. “I would expect that it would help us with our infrastructure. It is kind of a rough piece of property. I know we’re going to have to improve some sewer lines, and I believe install a new sewer interceptor.”

Overall plans for Ashmont encompass single-family residential lots including age-targeted cottages; a senior-living facility; a variety of commercial out parcels that will likely include restaurants, retail, and a hotel; as well as walking trails, ponds, and tree preservation areas.

“With this TIF, we see that the county is out nothing and the taxpayers are out nothing,” Wright said. “So it’s only a positive as far as what citizens are going to get out of it.

“It just simply allows the developers to finance the project and do the work.”