Opponents Agree Tax Increment Financing 'Excellent Tool' at Forum for House District 39

Editor's Note: House District 39 candidates, Kelsey Clark and Jake Highfill, discussed a number of issues at a candidate forum on Tuesday night in Johnston. Johnston Patch will run a series of stories highlighting the candidate's responses and stances to issues.

Tax increment financing has been used in Johnston to redevelop portions of Merle Hay Road and assist in the expansion of Pioneer Hi-Bred.

Candidates for Iowa House District 39 addressed the use of the practice -- which plows tax revenue back into an area to pay for improvements -- in cities and their thoughts on the incentive during a candidate forum Tuesday evening.

Kelsey Clark, a Democrat from Grimes, told those in the audience that tax increment financing is a great tool.

"We need to be clear it's really the only tool that cities have at their disposal, TIF is at the discretion of the local city council, that they have to stimulate local development," she said.

Clark cited meetings with Pioneer Hi-Bred and John Deere Financial, whose leaders emphasized the importance of TIF.

"It's crucial that we have TIF here in our district," she said. "When it's used responsibly, it's an excellent tool and the only tool."

Jake Highfill, a Republican from Johnston, said he supports the practice.

"I think it's one of the great tools we can use to promote economic development in Johnston and Grimes," he said. "We would not use TIF nearly as much if we do a comprehensive property tax reduction here in Iowa."

When it comes to state economic development programs, such as the Iowa Economic Development Authority, Highfill said he would have to look at the pros and cons of a program.

"I would need to look at each individual program individually moving forward," he said. "Everyone is different, I don't want to leave any on the table moving forward."

Each program would have to be evaluated.

"For example, TIF, if it works for you or the city keeps it moving forward or look for alternatives," he said.

Clark said she would be glad to serve on the economic growth committee if elected to the House. "It needs to be funded, though," she said of the authority. "If we are talking about investing in economic development that's something that needs to be funded."

Clark said the authority, which has had bipartisan support, faced a stumbling block in the Republican controlled House.

"The governor couldn't get his own party, at least in the House, to fund the economic development authority, it's important, that's a great organization."

Both Clark and Highfill are newcomers to the political process. Highfill ousted incumbent Erik Helland in the primary, but has had some rocky moments in his campaign. He is a defendant in a lawsuit, which claims Highfill caused a nine-inch gash to the face of his University of Iowa roommate, Carson Kness.