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As the developers of Mesa del Sol proceed with their special tax district funding, City Councilor Michael Cadigan wants to make sure they're the last of their kind to do so.

The councilor, who represents the northwest part of the city, is proposing a bill to keep tax increment financing districts to smaller infill and redevelopment projects, rather than entirely new developments.

The bill comes before the council tonight. If eventually approved, it could affect the plans for a massive West Side development proposed by SunCal.

"I've come to the point that I don't believe any longer that this tax break for development is appropriate," Cadigan said.

Mayor Martin Chavez's administration, meanwhile, is sounding a skeptical tone about Cadigan's proposal.

"That's probably too restrictive for good development," said Chief Administrative Officer Bruce Pearlman. "This bill is probably closing the barn door after one of the horses got out and is eating all the hay, in order to keep the other horse in and starve him."

Tax increment districts work like this: The city draws a line around an area and freezes its share of gross receipts tax collections at current dollar levels. But as increasing commercial activity boosts the overall collections, the difference is diverted to a separate fund for special use.

In the case of Mesa del Sol, the developer will take 67 percent of that new money and use it to build roads and other infrastructure. In the case of a smaller district, the money could go to such urban renewal projects as sidewalk repair or adding streetlights.

When used on a large scale, Cadigan said he has several objections to the system. If big retail projects move into the development, he argues, they can draw tax revenue away from other parts of the city, creating a budget hole. Plus, new school construction isn't automatically funded.

In the world of tax increment districts, all eyes are on the 55,000-acre SunCal property on the Southwest Mesa. SunCal New Mexico division manager Will Steadman said the developer had intended to apply for such a district.

The usual method for building infrastructure is through impact fees paid by the developer to the local government.

"We don't feel that this proposed amendment is the right way to address those concerns," Steadman said.