Marshalltown’s misuse and abuse of the TIF (Tax Increment Financing) program have contributed to the ruin of our streets. While TIF can aid economic development, its misuse and abuse must stop for the sake of our infrastructure. Boosting developer profits through TIF must end if we ever want to see our streets improved.

Here’s how it works: when a city creates TIF districts and new development occurs, property values rise. The taxes generated from this increase (the increment) are then diverted away from schools, counties, and general city funds – think streets – and instead go into a special fund for the TIF district.

This means older residential streets will never see any of that money used for resurfacing or even basic maintenance. They only receive snow removal and perhaps a street cleaning or sewer cleanout a couple of times per year.

All over town, streets have rapidly deteriorated since the implementation of TIF. That wouldn’t have happened if short-term tax deferrals were offered instead of long-term TIF agreements that boost developer profits and rob us of needed tax money for many years.

Using TIF in Marshalltown should only be used to put in new streets, sidewalks, and utilities for new developments. Boosting developers’ profits by giving them our tax money is an abuse of TIF by our city council and the Chamber of Commerce, simply because Marshalltown has never had a large enough tax base to support TIF programs “the way they are used” and maintain older streets and infrastructure at the same time. TIF is a big reason our streets are so dilapidated and have been neglected for decades.

In Iowa, before TIF was first used to boost developer profits (pre-1985), I remember most of our streets were in good condition, or overall, in far better condition than they are now. In fact, every few years, you would see a blacktop machine rolling through, refurbishing different neighborhoods. But not since TIF.

Consider the state of our streets. Dilapidated roads surround our schools, churches, public library, and throughout our neighborhoods. Many haven’t seen any new blacktop in decades, and they’re in worse condition than ever before. We’re facing major alligatored, endless potholes, dips, sinkholes, and patches over patches on our streets. RAGBRAI 2026 will be a huge embarrassment for Marshalltown, not to mention the daily wear and tear our streets do to our vehicles.

Since the 1990s, with devastating financial events such as the [Iowa Trust Scandal] and [Lennox expansion], along with numerous urban renewal and TIF areas, the City of Marshalltown and the Chamber of Commerce have been “robbing the poor” of our tax money and “giving it to the rich,” much like [Robinhood in Reverse], while neglecting our older streets and infrastructure.

When tax money directly subsidizes the construction of private infrastructure and buildings, as the City and Chamber of Commerce do with TIF, it’s solely about boosting developer profits.

This is how TIF was used for the Marshalltown mall’s new owner/developer, providing $7 million after they already owned the property and planned to use their own funds for refurbishment. This wealthy Texas developer didn’t need our $7 million. Clearly, this was TIF abuse.

The same is true for Marshalltown’s TIG. A $1.65 million TIF agreement promised 50 new jobs, but TIG isn’t creating any. Their business wasn’t leaving town without a TIF deal; they just wanted taxpayers to fund their expansion. Clearly this is TIF abuse.

A recent $800,000 TIF agreement subsidized a developer, using our tax dollars to simply move dirt on their property, directly boosting their profits by the same amount. Clearly, more TIF abuse.

Similarly, a $165,000 TIF agreement was made for a new Main Street Pharmacy development, even though the property already had access to streets and utilities. Why were these TIF agreements approved? Also, This is TIF abuse.

Why should taxpayers fund wealthy developers to move dirt or build new infrastructure when these funds could be used for our streets and essential community improvements? Do developers offer to help us pay for our own home renovations, like dirt work, garages, windows, siding, driveways, sidewalks, or roofs?”

It’s crucial to remember that for years to come, taxes from the increased value of properties in TIF areas will not go to general city funds, schools, police/fire departments, streets, or the county. Instead, that tax money will be given back to developers as tax rebates, boosting their profits.

Yes, wealthy developers receive your tax money for many years, increasing their profits. Can you see why our streets are in such disrepair?

And here’s the kicker: these wealthy developers never have to repay your tax money. Ever! Your taxes would be far better spent rebuilding the streets in the neighborhoods where you pay property taxes. Right now, it will cost over $150 million to repair our neighborhood streets.

In fact, our city council is currently in such a big financial bind (constantly $60 million in debt) that they are forced to cut back more services and programs, partly because of the way Marshalltown still misuses and abuses TIF. For a town with Marshalltown’s poverty and small tax base, the city needs to restrict the use of TIF to only new streets, sidewalks, and access to utilities, and let the developers pay for their own developments. TIF has been and is a problem for city finances, and Marshalltown needs to stop using TIF to boost developer profits!

City hall, along with all its past mayors, city administrators, and city councils, plus the Chamber of Commerce, have been just like [Robinhood in Reverse]. They have been robbing you (the poor) to give to the rich (the developers) in the form of TIF (tax increment financing). Remember that fact every time the Chamber of Commerce and wealthy developers appear at city hall for another TIF agreement that includes anything other than a new street, sidewalk, or access to utilities.

Contact your city council member or city administrator to restrict TIF usage to essential infrastructure like streets, sidewalks, and utilities for new developments. Stop the misuse of the TIF program to unfairly benefit developers. Only then will the city potentially allocate tax money towards repairing our damaged streets.

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Jeff E. Harris of Marshalltown is the former vice president of Harris Inc.