Commonwealth Financing Authority and Washington Park

The office of Governor Edward G. Rendell this week said that millions of dollars of tax guarantees will allow communities, such as Mt. Lebanon, to develop new housing, retail and recreation areas on abandoned and undeveloped sites.

The guarantees, part of what's called a tax increment financing district, are created when a municipality determines it wants to use a parcel of land -- primarily a brownfield site -- for economic development. After members of the community, the local redevelopment authority and the school district determine how to use the land, a forecast of how much tax revenue the site can generate is developed. That forecast is then used to calculate the bond amount the district can issue for development.

Link: www.postgazette.com/pg/07179/797620-55.stm