Thursday, July 7, 2011

City Reactivates Two Dormant TIF Districts

You just knew it would happen.  Last year the City released, upon request from many people, a list of TIF districts, how much revenue was anticipated coming in from property taxes, and how much the debt service requirements were.

On that list were 5 TIFs listed under 'Dormant TIFs' with a footnote that the incremental property taxes were passed through to the base.  That means that the property taxes obtained from the TIF district improvements were not needed to pay off bonds, so the money went to the various taxing units in the same proportions that regular property taxes would be distributed.

On Wednesday, the Metropolitan Development Commission approved the re-engagement of two of these districts.

One is the Dow Elanco TIF (aka the 86th Street and Zionsville Road Economic Development Area).  I am being told by Deron Kintner (Executive Director of the Bond Bank) through John Bartholomew (Public Information Officer of the Department of Metropolitan Development), that the roughly $6 million of incremental property taxes that passed through to the base last year would continue to do so next year.  Bonds have been floated so that the City could make infrastructure improvements to aid Dow Elanco and AIT Laboratories.

The other is the Naval Air Warfare Center (NAWC) in Warren Township.  In 1991 it was deemed part of the United TIF (aka Airport Economic Development Area), but at some point since then became untied from repayment of those bonds.  Now, in order to make improvements to the NAWC, the TIF is being reengaged to pay for the bonds that will finance the improvements.  This is to the benefit of Raytheon.


marksmall2001 said...

Could you provide a link, in your post, to the definition of TIF so that some (like me) who do not know what it is can check it? I have a rough idea, but would like something clearer. Thanks.

Had Enough Indy? said...

Here are some of my previous blog posts about TIFs --