South Putnam discusses Cloverdale TIF district

Thursday, January 22, 2015

With Cloverdale planning to move forward with a TIF district, the South Putnam School Board briefly discussed the issue during its meeting on Tuesday evening.

Superintendent Bruce Bernhardt came before the board to discuss plans for the Tax Increment Financing (TIF) district, which the Cloverdale Redevelopment Commission presented to the Cloverdale Town Council back in December.

The proposed TIF district, which aims to produce move revenue to help with town improvements, will incorporate the area around the I-70 interchange as well as some of the U.S. 231 corridor through town as well as all major commercial areas.

This new district does not apply to residential areas and for the most part has no effect on the taxpayers. However, school corporations tend to be against TIF districts as it usually takes away revenue.

"The bottom line is that the town will put in infrastructure, in particular on the north end here, which happens to be in South Putnam's district, in hopes of getting business and or industry to build there" Superintendent Bruce Bernhardt explained. "That will then generate revenue, which the town will receive as pay back for putting in the infrastructure."

Bernhardt noted that although most school corporations choose to side against such things, there is usually nothing that can be done as local government agencies typically side with TIF districts.

"Superintendents associations and school business officials are always against the TIF districts because it often limits areas that may be built in anyway," Bernhardt explained. "By the towns building TIF districts it takes away potential revenue from schools."

Putnam County Development Center Executive Director Bill Dory previously advised the Banner Graphic that the way TIF works is the Cloverdale Redevelopment Commission, in cooperation with the Town Council, declare a geographic area a TIF district and the assessed value is then "frozen." Thus, that frozen assessed value in that particular area continues to be shared among the taxing units.

When that infrastructure is paid off the assessed value then can go back to the other taxing units in the future. However in the meantime, the town of Cloverdale will benefit from increased food and beverage tax revenue, employment, revenue and more economic activity.

Although the South Putnam School Corporation will not get any less funding then it normally does, the corporation could stand to lose some potential funding from future expansion.

As of now, the Cloverdale Redevelopment Commission officially passed the proposed TIF district. It will hold a public hearing on the issue on Wednesday, Jan. 28 at 1 p.m. before moving on the state and county for approval.

"The bottom line is there is nothing we can do about it," board member Steve Cash said.

In other business:

* Bernhardt noted that due to South Putnam being a realtively small corporation, the town earned a total of $14,891.71 in 2014 from its interest bearing accounts.

* The board chose to elect Wes Hacker as president, David Bombei as vice president and Cash as secretary.

* The board also will be keeping John Zeiner as corporation attorney, Becky Samsel as treasurer and Terri Beasley as deputy treasurer.

* The board approved the resignations of middle school/high school teacher Kymberlee Lyell, middle school dean of students Dan Bain (effective at the end of the year) and part-time food service attendant Sherry Hanley.

* Board member Angie Nichols, Bernhardt, Beasley and Samsel were appointed as members of the bid opening committee.

* The board also approved the hiring of middle school/high school teacher Kacie Daugherty, custodian Eric Everman, middle school track coach Aaron Book, softball assistant coach Kristin Hendrich, seventh-grade girls' basketball coach Jamie Foy, middle school track coach Samantha Ricks and middle school swim coach Annie Willer.

* The board honored Central Elementary fifth-grader Michael Lorimer, Fillmore Elementary second-grader Ariel Dooley, eighth-grader Allen Plunkett and senior Zane Crosby as its students of the month.

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