Final answer:
Tax increment financing (TIF) is a financial tool used by government agencies to promote urban redevelopment by issuing bonds that are repaid with increased tax revenues from the surrounding area.
Step-by-step explanation:
The term you are looking for is tax increment financing (TIF). Tax increment financing is a financial tool used by government agencies to promote urban redevelopment. The process involves designating an area as a potential redevelopment zone and issuing bonds that will be repaid with increased tax revenues generated from the surrounding area.
For example, if a city wants to revitalize a blighted neighborhood, they may issue bonds to fund projects such as building new infrastructure or renovating existing buildings. As the area improves and property values increase, the additional property tax revenue generated is used to repay the bonds.