Iowa City City Councilors approved the first consideration of a tax-increment financing ordinance.

The TIF ordinance would establish Iowa City as a tax increment financing district.

According to the proposal, the ordinance would allow for taxes derived from taxable Urban Renewal Project Area property to be placed in a TIF fund. The TIF funds would be used for loans, rebates, grants, advances, indebtedness, or bonds for City Council-approved projects.

City councilors approved the first consideration on a 7-0 vote.

An ordinance requires three readings; councilors will vote on the second consideration during its meeting on March 6.

— by Kristen East