The resurrected Redevelopment Commission had their first substantial piece of business this week since establishing Frankfort's economic development plan earlier this year.

The members passed a resolution establishing a Tax Increment Financing district, which will be used to capture funds for future infrastructure and economic development projects.

An "allocation area" was already created and passed in the first phase of the economic development plan. The allocation area encompasses four companies in the Industrial Park where TIFs will be implemented first.

"It freezes money for economic development," said Mayor Chris McBarnes.

McBarnes said this is "revolutionary" for Frankfort, and something that brings the city up to speed with other municipalities. It's also an incentive Frankfort has never offered businesses as tax abatements were the only offering for capital improvement projects. McBarnes also expects the TIF district to bring in more industries knowing this is available to them.

One of the bullish thoughts now circulating is that the U.S. housing market will take up where the manufacturing sector has left off - that is, as a new source of growth for the economy. Manufacturing was one of the bright spots within the economy during the recent recovery, driving growth even as housing remained depressed.

The ISM manufacturing index rebounded to its highest level in years in 2010, and continued to expand this year before slumping into contraction territory in June and reawakening all sorts of gloomy scenarios about the broader economy.

But Josh Lehner, senior economist at Oregon's Office of Economic Analysis (hat tips to Calculated Risk and FT Alphaville), has a couple of interesting reactions.

First, manufacturing has been expanding for about three years, which is a pretty good track record from an historical perspective. And more importantly, the economy isn't necessarily doomed if housing can replace manufacturing as a major economic driver.