The Paducah Board of Commissioners approved Tuesday night an ordinance to establish a Tax Increment Financing (TIF) District for the downtown and riverfront areas.
The ordinance also authorizes the mayor to enter an interlocal cooperation agreement and local participation agreement for 20 years with McCracken County.
The project is an economic development tool that allows local governments to capture future increases in property tax and other taxes generated by new development within a specific area. That money would go into infrastructure needs for the designated zone.
The district will incorporate approximately 315 acres.
City manager Jim Arndt said in a release the move will “pay dividends literally over the next two decades.” City officials said the goal is to promote public and private development.