Two years after Bowling Green’s Tax Increment Financing district was planned, the city is still struggling to bring in new businesses.

TIF was introduced in 2007 to revive downtown by giving tax incentives to new businesses that open in the district, Mayor Elaine Walker said.

But she said the only new income brought into the area was the Bowling Green Ballpark, which was paid for by the city.

Walker said plans for a hotel near Western are being discussed, but those plans aren’t final.

TIF’s master developer, Alliance Corporation, is in charge of bringing businesses to downtown. Alliance Corporation President Tommy Gumm said the group has had no new businesses commit to opening in the TIF district because of the economic downturn.

But he said they are trying.

“I think we have what they’re looking for,” Gumm said. “It’s just the credit crunch is affecting everyone right now, and the economy has to get better for things to turn around.”

City Commissioner Bruce Wilkerson said TIF is still in the early stages.

He said Alliance Corporation has been making contacts and pursuing businesses at a steady pace, but he realizes not everyone is pleased with TIF’s progress.

“Some people think you just say, ‘This is what we want’ and it will be built, but it’s not like that,” he said. “It’s a 20-year project, so I feel it’s moving fast but maybe not fast enough for some.”

Wilkerson said he thinks a better economy is the key to improvements in the TIF district.

“There are always different ideas about what we could do locally, but with the national economy as it is, I feel that’s the bigger issue,” he said.

He said getting funding for both businesses and developers has been difficult because loans at most banks will only be approved for about 80 percent of the total building cost, meaning businesses pay 20 percent of the cost on their own.

This can cause issues when construction costs millions of dollars, Wilkerson said.

“I’d love to see an announcement of something going into downtown but it depends on the banks making the call to release financing,” he said.

Walker said she thinks the city should bring in more developers to get the program moving.

“I think more private investors need to be involved and more experienced sub-developers,” she said.

Walker said her vision for the TIF involves using current buildings downtown as well as bringing in new businesses.

“I’d like to see solid, more developed plans to keep the current architecture in play instead of tearing down buildings to build new ones, and I’d like to see mixed use in these facilities,” she said.

Gumm said his company is doing all it can to help the TIF district.

“If we could do something different to make things work out, we would,” he said.