The Warsaw Redevelopment Commission took another step Monday toward establishing a second Tax Increment Financing district on the city's north side.

The commission approved a timetable City Planner Jeff Noffsinger proposed to complete the process by the March 1 deadline required for the city to begin receiving TIF revenue beginning in 2000.

"I've been working on an economic development plan for you to adopt along with a TIF declaratory resolution on Feb. 1," Noffsinger told the board.

According to the proposed schedule, the resolution would be presented to the plan commission Feb. 8 and the city council would conduct a public hearing on the measure Feb. 15. If this schedule is followed, the final resolution would be passed at a special redevelopment commission meeting Feb. 21.

Board member Jerry Kralis expressed concern about moving forward with the northern TIF district before a firm resolution to the city's sewer treatment capacity is addressed. The current sewage treat plant is near its maximum capacity, and any additional commercial or industrial development may push the demand on the facility over the limits allowed by the Indiana Department of Environmental Management.

"If we're looking at doing this while we're having a problem with (sewer) capacity, aren't we putting the horse before the cart until we get a new plant?" he said.

Noffsinger responded that the city is closing in on a decision to build a new treatment facility, and the establishment of a second TIF district could help make the project come to fruition sooner rather than later.

"I actually think the new TIF would help in getting the new plant," he said.

Tax increment financing is an instrument local governments use to encourage commercial and industrial development. The concept behind the process is to have new business development pay for the streets, sewers and water service improvements that are required for locating in a particular area.

In establishing a TIF district, the local taxing body freezes property values within the district. Bonds are then issued to make the infrastructure improvements needed to encourage and promote the development, which in turn leads to higher property tax revenues. The increase in revenue is captured and used to repay the bonds and the interest on them.

The proposed boundaries of the second TIF district are from Hidden Lake and the proposed location for a second sewage treatment plant near CR 150W north along Ind. 15 to near CR 350N. TIF proceeds would be used to construct proposed infrastructure improvements, such as water and sewer lines and frontage roads along Ind. 15.

The Redevelopment Commission is made up of Robert Steele, president; Tammy Rockey, vice president; Charles Smith, secretary; Jerome Kralis and Neal Carlson. [[In-content Ad]]