Cities across the nation compete to attract new businesses that add jobs and new revenue streams to local communities. Incentives are important tools to achieve economic development goals. The City does not lose money through such value-added tax abatements, as the development would not have occurred without the tax abatement. The projects result in significant property tax value and revenue to the City after the abatement expires (maximum 10 year terms). In addition, economic growth generated by these agreements fully benefits the local school districts, as they do not participate in abatements.