HomeMy WebLinkAbout20181127 Council Presentation TIFDepartment of Community Investment
November 27, 2018
Update on TIF
Today’s Agenda
1.Policy Goals
2.TIF Overview and Uses
3.Revenue
4.Historic Expenditure Profile
5.Strategy Shift and 2019 Planned Projects
6.Overview of Development Areas
Policy Goals
Growth of wages, gross municipal product, assessed value,
population, etc.
•Productivity—dense, vibrant neighborhoods;
workforce development and upskilling;
entrepreneurship and business acceleration
•Inclusion—inclusive professional networks; access to
affordable housing, childcare, transit options, etc.
•Placemaking—quality of place and culture that attracts
and retains talent and jobs
•Sustainability—robust infrastructure; long term
stewardship of resources
•Tax Increment Financing or TIF is a financing mechanism that
provides funding for economic development purposes within
a designated area.
•TIF captures the growth in property taxes due to new, induced
development.
•Redevelopment Statute / IC 36-7-14 (1975)
WHAT IS TIF ?
- County
Base Tax - School
NAV x Rate =Taxes - Library
- City
PURPOSE & BENEFITS of TIF
Tax Allocation Area –
Before New Construction
Existing property assessed value is part of tax base for all
overlapping taxing units
County
Schools
Library
City
PURPOSE & BENEFITS of TIF
Tax Allocation Area –
After New ConstructionRedevelopment
Incremental Tax TIF Commission
Assessed Value x Rate =Taxes Allocation
Fund
Base Tax County
Assessed Value x Rate =Taxes School
Library
City/Town
Capture growth in real property assessed value
PURPOSE & BENEFITS OF TIF
TIF Revenues are used to pay for local public improvements
needed to induce private development, encourage job
creation/retention or improve areas needing redevelopment.
–Acquisition of land, rights-of-way, and other property for redevelopment
–Buildings
–Capitalized interest and a debt service reserve for the bonds
–Improve infrastructure (streets, sidewalks, lighting)
–Parking facilities
–Personal property/equipment
–Professional service expenses related to economic/redevelopment activities or
the issuance of bonds
–Public facilities
–Support (project-specific) training and workforce development programs
Overview of Redevelopment Revenue
$19.98 $19.31
$22.67
$17.57 $15.83
$6.64 $7.14
$7.45
$7.14
$7.96
$2.45 $3.90
$2.36
$2.24 $1.98
$0.35
$0.38$0.47
$0.40
$0.34
$0.32 $0.29
$-
$5
$10
$15
$20
$25
$30
$35
2016 2017 2018 2019 2020MillionsTIF REVENUES ($m)
River West River East South Side Douglas Road West Washington
Historic Investment Profile
•50-60% on Jobs
•20-30% Infrastructure
•10% on Public Facilities
•1-10% Remediation
•2% Parks
•Up to 4% on Property Management
Strategy Shift: Benefits of Tax Abatement versus TIF
Lower risk to the taxpayer
•Scales with new investment level and added assessed
value, which can only be estimated in advance
•Only goes into effect if and when project investment
occurs
Not limited by geography or in competition with other
supported projects
Frees up TIF funds for other investments
Overview of 2019 Plans for Redevelopment Funds
$28.4 million expected revenue across redevelopment funds
$13.3m for debt service leaves $15.1m of 2019 funds
Major Projects
1.$4.4m for public works projects, including North Station Filtration Plant, water mains, and booster stations
2.$1.5m in Parks projects (in addition to TIF bond debt service)
3.$2m for Western streetscape, Falcon to Dundee
4.$800,000 local match to federal funds for coal line trail project
5.$450,000 for technology resource center operations and programming
6.$750,000 for Portage-Elwood streetscape
7.$800,000 for Sherman-Harrison infrastructure/public space
8.$550,000 for city cemetery entrance (RW TIF)
9.$500,000 for engineering and design of 2020 WSMS implementation
10.$385,000 for redevelopment professional services (legal, engineering, TIF management)
11.$500,000 for Washington Colfax apartments (half of existing commitment, other half in 2018)
12.$400,000 in West Washington area improvements
Overview of Areas
TIF Area Amendment Process
(Approximately 3 Months)
•Redevelopment Commission
Declaratory Resolution
•Approval by Area Plan
Commission
•Approval by Common Council
•Redevelopment Commission
Confirming Resolution
River East*
2018
•$8.8m Cash Carry Forward
•$3.1m revenue ($1.46m in
December)
•$12m committed
Priorities
•NE and Mishawaka Corridors and
cloverleaf
•Cascades and Commerce Center
projects
•Continuing East Bank momentum
River West
2018
•$33.5m Cash Carry Forward
•$23.3m revenue ($6.7m in December;
$4.1m from INDOT)
•$8.6m debt service
•$38m committed
Priorities
•Coal Line Trail
•Ignition Park
•City Cemetery Plan
•West Side Main Streets Plan
•Portage-Elwood
•South Shore
•Library
•Parking
•Infrastructure, Parks, and Other Support
South Side
2018
•$7.8m Cash Carry Forward
•$1.7m revenue ($1m in December)
•$7.3m committed
•$1m pending
Priorities
•Water Capital
•Drainage
•Parks, including O’Brien and
Scottsdale Pool
•SE Master Plan and Miami Hills
Apartment (if realignment
approved)
West Washington
2018
•$2.3m Cash Carry Forward
•$0.3m revenue ($0.15m in Dec.)
•$2.3m committed
•$0.3m pending
Priorities
•City Cemetery Master Plan
•Kizer
•Washington-Colfax
•Infrastructure and Connection
to Downtown