Redevelopment will capture 51% of available TIF proceeds in 2016

Taking just half of the amount it legally could, the Greencastle Redevelopment Commission hopes to continue to spend TIF (tax increment financing) proceeds where they most help the community.

Stressing a history of being fiscally conservative, the Greencastle City Council has endorsed the Redevelopment Commission's request to restore its share of captured assessed valuation (AV) in the TIF District to 51 percent of the anticipated sum for 2016.

Based on current tax rates, the Redevelopment Commission requests the tax increment (increase in AV via additional development in a specific area) from $75 million in assessed valuation within the Greencastle Economic Development TIF district area be captured for use on projects affecting that area or the community as a whole during 2016.

That would amount to $1.9 million in funds that could be for such projects during the period 2016-18 as:

-- South Jackson Street improvements promised with the commitment of Phoenix Closures to relocate to the old Greencastle Manufacturing/Lobdell-Emery building, $730,000.

-- Stellar downtown facade project, Phase II, $1.3 million.

-- Other Stellar-related investments (not necessarily committed dollars but contingency funds), $700,000.

-- Community Center (aka possible YMCA project ) initial costs, $600,000.

-- South Street improvement project, $250,000.

-- Training grant reimbursements, $215,000.

-- Indianapolis Road infrastructure improvements east of the main Kroger entrance, $1.5 million.

With what has been happening in the State Legislature lately in regard to TIF districts, Mayor Sue Murray said the increase is necessary to cement those projects for the community's future.

"The assault on TIF," she said, "is not over."

Using an AV figure of $75 million represents a $23 million increase over the $52.2 million that would have been used to capture the tax increment had the commission kept the level at the 35-36 percent used in recent years.

"Most districts are set up to take the full amount possible -- 100 percent," City Attorney Laurie Hardwick said, noting that the Greencastle commission has conservatively used 40-50 percent and passed through the remainder to other local taxing units.

In recent years, however, when property tax caps took effect, the commission even lowered its share to 35 percent.

"We're trying to adjust now to make up for where we adjusted earlier," Hardwick added.

The current effort is designed to bring the level back to where it was, but still at about half of what could be taken by Greencastle.

Councilman Mark Hammer stressed that the city and Redevelopment Commission are not taking an additional $23 million (increase from $52 million to $75 million AV), as might be misconceived by some. Instead, what is at stake is the tax increment off that AV, which amounts to $1.9 million for 2016, as opposed to $1.2 million previously.

"We could really say 'we'll take $3.8 million,'" Hammer said if 100 percent was captured, "but we don't, we pass the rest through."

In using the $75 million figure, the tax increment from the captured assessed value is expected to generate the required funding for the stipulated local projects. The commission will still pass an estimated $45-55 million on to the other taxing units.

While the Putnam County Auditor's Office has not yet finished tabulating the actual assessed valuation for 2015 pay 2016 taxes, the exact amount available for pass through won't be determined until those values are established and a TIF neutralization study is completed.

"The Commission understands that the revenue generated by the economic development area will depend on final tax rates," Greencastle Redevelopment Commission President Erika Gilmore said in a letter detailing the request. "It also understands that assessed values may change due to trending, appeals, new construction and roll-off of abatements."

City Council concurrence with the Redevelopment Commission request was unanimously approved following a motion by Councilor Jinsie Bingham and a second by Phyllis Rokicki.