I mentioned in that July blog entry that there were 15 TIF Districts whose base value had dropped to $0 at some time in the past. I have now obtained the forms filed for these districts for tax year 2012 and have compared them with those filed last year. No additional districts saw their base assessed value drop to zero. But, all districts not at zero base AV, saw the value of the base drop between 2011 and 2012 taxing year. When a TIF district is begun, the base AV is the value of all property in the district on day zero. We are led to believe that that property value of the base continues to rise and fall with the market over time, but the taxes collected from those properties will always flow to the "base", or all of the taxing units (schools, townships, library, IndyGo, etc), and not be taken to pay off the TIF debt. This turns out not to be true.
Combined, as I said above, the drop in Marion County TIF district base AV was $28,093,698. Part of that drop is due to the fact that property values have dropped as the recession continues. Using the drop in the total gross assessed value for the entire County as an good estimate of the general drop, we can see a loss of 0.48%. Applying that percentage to the TIF district base AV, one would expect a drop in value of only $7.5 million.
The TIF Districts that experienced a drop in base AV greater than one expects from the recession were:
From the consolidated downtown TIF (8 districts - 6 at zero base AV)Why these particular districts saw extra large drops in base AVs, I have no clue. But, its a start just to know that they did. Maybe someone with influence can find out and let the rest of us know.
145 - union station project - dropped $819,419 or 2.50%
From the airport eda (7 districts - 3 at zero base AV, one of which is government owned)
940 - wayne twp airport eda - dropped $1,353,814 or 0.58%
941 - wayne twp airport eda - dropped $7,779,920 or 55.55%
Both Glendale eda TIF districts have base AV's of zero
Other Indianapolis TIF districts (13 districts - 6 at zero base AV)
149 - united nw area - dropped $4,873,206 or 9.86%
From the Beech Grove Hospital TIF (3 districts - none at zero base AV)
170 - beech grove consolidated allocation area - dropped $182,146 or 5.59%
From the Beech Grove Amtrak/Conrail Redev. area (3 districts - none at zero base AV)
552 - south emerson redevelopment area - dropped $133,886 or 2.66%
Lawrence TIFs (3 districts - one with zero base AV and it was government owned) - recession drop only
Speedway TIFs (3 districts - one with zero base AV)
947 - speedway allocation area 2 - dropped $7,369,351 or 9.49%
Inactive TIF districts ( increment value is passed on to base - base is recalculated since TIF district still exists) (3 such districts - one with zero base AV - recession drop only)