Frequently Asked Questions

Q: Can creating a TEDD change the zoning?
A: No, creating a TEDD cannot change zoning. Zoning is a regulatory tool that enables the County to enact its growth policy by designating areas for different land uses, development densities and design standards. TEDD is a funding tool to help build infrastructure necessary to implement the growth policy and support anticipated growth. In fact, one of the requirements to create a TEDD is that the defined geographic area is already zoned in accordance with the growth policy. Because zoning for the Wye 2 TEDD area was recently enacted as part of a larger zoning project in 2022, it is only now possible to create the Wye 2 TEDD.

Q: Is this the same project as the Wye Infrastructure plan? How do all these projects relate to each other?
A: No. A different Wye Infrastructure planning process, led by the County’s Planning, Development and Sustainability Department, is underway. That planning process is significantly more in depth than the Comprehensive Development Plan for the TEDD and will identify actual preferred alternatives for building community infrastructure.

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Q: Has Missoula County consulted with the affected taxing jurisdictions?
A: Yes. Missoula County has been working with taxing jurisdictions that will be affected by the creation of the TEDD. In total, there will be at least four meetings with the taxing jurisdictions before the project is complete. In particular, the comprehensive development plan will include language the taxing jurisdictions propose, and the County will continue to collaborate with the school districts and first responders as this plan is implemented over time.

These jurisdictions include:

Q: What is the benefit to creating the Wye 2 TEDD?
A: TEDDs are one of the only economic development tools available to County government. The Wye 2 TEDD will allow the County to implement the community’s vision for the area, as articulated in the Land Use Element of the Growth Policy, by assisting in the building of infrastructure that supports industry at the Wye.

Q: What are Tax Increment Financing and Targeted Economic Development Districts, and how do they relate to each other?
A: Montana law allows local governments to borrow against future property tax dollars in localized areas that are in critical need of infrastructure. This tool is called tax increment financing, or TIF. In these specific areas, counties can use TIF to build infrastructure that supports production of goods that can be sold (value-added products).

One of the few areas where TIF is allowed is called a Targeted Economic Development District. TEDD is a designated area adopted by local ordinance that must be zoned in-part for production of goods and has a development plan in place that supports multiple tenants but is deficient in infrastructure improvements necessary to actualize the development plans. Once an area is designated a TEDD, tax increment from that area can be accrued in a separate account during the duration of the TEDD (usually 20 years) to be used toward infrastructure improvements in the district.

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Q: Will being in a TEDD increase my taxes?
A: No. Being in a Targeted Economic Development District does not in itself increase property taxes. A TEDD simply ensures any increases in tax revenue stay in the area to fund infrastructure improvements, rather than going toward the general budgets of local taxing jurisdictions. Taxpayers located within a district pay the same amount of property tax as they would without the TIF provision.

Q: What can tax increment funds be used for?
A: The County can use tax increment funds to plan for and build infrastructure identified as deficient that supports value-added industry. This includes, but is not limited to, transportation infrastructure, water, wastewater, workforce housing, stormwater, broadband, fire protection and life safety services.