County Hopes To Learn More About TIF
July 28, 2016 at 4:25 p.m.
Kosciusko County officials will push ahead in hopes of learning more about tax increment financing before an approaching deadline.
The tax district, which has been established in recent years in Warsaw and Milford, is being sought by Maple Leaf Farms to pay for road improvements adjacent to the duck producer's plant near Milford.
Maple Leaf, which began major expansion plans last year, hopes to capture some of the tax revenues from improvements completed last year. To do so, the tax district must be established by March 1.
A sense of urgency arrived last night with snowy conditions when some members of county commissioners and county council met at the courthouse with representatives of Maple Leaf and Kosciusko Development Inc.
Two attorneys who were to explain details of TIF to county officials were unable to attend the meeting because of poor road conditions after several inches of snow fell Monday afternoon.
Several council members are on vacation, and only four elected officials attended the joint meeting.
Councilman Harold Jones, though, called for cooperation to ensure officials could consider the plan before the March 1 deadline.
TIF works like this: A district is set up around a specific area slated for capital improvements. After construction, tax revenues from the improvements are set aside to pay for those costs. The arrangement doesn't dip into the current tax pool, but remains in place until the improvements are paid off.
Warsaw used revenues from the Zimmer corporate office to pay for improvements in and around Central Park. Milford is making infrastructure improvements as a result of new industry on the town's northeast side.
Maple Leaf outlined expansion plans that will total about $8.5 million when completed in a few years. Much of the work involves expansion of the adjacent Serenade Foods plant adjacent to duck operations.
Maple Leaf and county officials agreed to a request in May 1996 to road improvements to county roads 900N and 200E, two main roads used by the company.
The project includes widening roads, improving drainage and widening some intersections to accommodate increased truck traffic.
Road construction is expected to cost about $1.1 million. A state grant is expected to provide about $200,000.
County highway spokesman Matt Winger pointed out that funds for the project were not included in the 1997 budget, and that "the need for the road improvements is there today."
If the project is approved, the county would seek a bond to pay for improvements and then pay off the bond over a period of time, possibly 10 years.
KDI president Charlie Sparks commended Maple Leaf's request, noting the company could have sought tax abatement and assumed the county would pay for road improvements.
Jones questioned why TIF had not been secured earlier. Sparks said it was difficult to arrange a joint meeting the attorneys and all county officials could agree upon. Financial data had not been available until November, said a company official.
The issue will be discussed at the commissioners' Feb. 4 meeting and council's Feb. 6 meeting.
County auditor Charlene Knispel urged the county to move cautiously, saying there could be drawbacks involving reporting duties. [[In-content Ad]]
Kosciusko County officials will push ahead in hopes of learning more about tax increment financing before an approaching deadline.
The tax district, which has been established in recent years in Warsaw and Milford, is being sought by Maple Leaf Farms to pay for road improvements adjacent to the duck producer's plant near Milford.
Maple Leaf, which began major expansion plans last year, hopes to capture some of the tax revenues from improvements completed last year. To do so, the tax district must be established by March 1.
A sense of urgency arrived last night with snowy conditions when some members of county commissioners and county council met at the courthouse with representatives of Maple Leaf and Kosciusko Development Inc.
Two attorneys who were to explain details of TIF to county officials were unable to attend the meeting because of poor road conditions after several inches of snow fell Monday afternoon.
Several council members are on vacation, and only four elected officials attended the joint meeting.
Councilman Harold Jones, though, called for cooperation to ensure officials could consider the plan before the March 1 deadline.
TIF works like this: A district is set up around a specific area slated for capital improvements. After construction, tax revenues from the improvements are set aside to pay for those costs. The arrangement doesn't dip into the current tax pool, but remains in place until the improvements are paid off.
Warsaw used revenues from the Zimmer corporate office to pay for improvements in and around Central Park. Milford is making infrastructure improvements as a result of new industry on the town's northeast side.
Maple Leaf outlined expansion plans that will total about $8.5 million when completed in a few years. Much of the work involves expansion of the adjacent Serenade Foods plant adjacent to duck operations.
Maple Leaf and county officials agreed to a request in May 1996 to road improvements to county roads 900N and 200E, two main roads used by the company.
The project includes widening roads, improving drainage and widening some intersections to accommodate increased truck traffic.
Road construction is expected to cost about $1.1 million. A state grant is expected to provide about $200,000.
County highway spokesman Matt Winger pointed out that funds for the project were not included in the 1997 budget, and that "the need for the road improvements is there today."
If the project is approved, the county would seek a bond to pay for improvements and then pay off the bond over a period of time, possibly 10 years.
KDI president Charlie Sparks commended Maple Leaf's request, noting the company could have sought tax abatement and assumed the county would pay for road improvements.
Jones questioned why TIF had not been secured earlier. Sparks said it was difficult to arrange a joint meeting the attorneys and all county officials could agree upon. Financial data had not been available until November, said a company official.
The issue will be discussed at the commissioners' Feb. 4 meeting and council's Feb. 6 meeting.
County auditor Charlene Knispel urged the county to move cautiously, saying there could be drawbacks involving reporting duties. [[In-content Ad]]