Office Incentive

The City of Grimes offers a Tax Increment Financing rebate to eligible individuals/entities for new taxable value added from office developments that meet certain minimum requirements. 

Program Benefits

The Tax Increment Financing Rebate shall be offered for up to a maximum of ten years, at the following schedule: 

  • Years One (1) thorough Six (6)          - 100% Tax Increment Finance Rebate
  • Year Seven (7)                                   - 80% Tax Increment Finance Rebate
  • Year Eight (8)                                     - 60% Tax Increment Finance Rebate
  • Year Nine (9)                                      - 40% Tax Increment Finance Rebate

Minimum Requirements

  1. Incentives shall be for office uses only.  Mixed use development which includes office and retail uses may be eligible if the predominant use is office (minimum 90% floor area) 
  2. Eligible projects must demonstrate an ability to achieve an assessed valuation of no less than one million dollars ($1,000,000.00) per acre when fully constructed.   
  3. Incentives for multi-story development will be favored. 
  4. Incentives are only applicable to new construction, or substantial expansions/additions. 
  5. Redevelopment projects are eligible, if existing buildings within the development project are removed, and overhead utility service lines are buried or replaced.


A developer acquires a property for development.  Upon the property exists a single-family house.  The developer demolishes the house, and the land is valued at $100,000. The developer proposed a 3-story, 50,000 square foot office building, with 5,000 square feet of ground floor retail.  The County Assessor estimates the value of the development at $12,500,000.   

Therefore, the property has an incremental value of $12,400,000.  The TIF rebate will only be applied to the incremental value of $12,400,000.