Warsaw Redevelopment Panel Decides To Start TIF Process
July 28, 2016 at 4:25 p.m.
The Warsaw Redevelopment Commission authorized taking the initial step in declaring a second tax increment financing district on the north side of Warsaw.
The commission was given the estimated costs for the initial infrastructure improvements in the district by city planner Jeff Noffsinger.
To construct a frontage road on either side of Ind. 15 between U.S. 30 and CR 300N, an access road to the proposed sewage treatment facility, and 3,000 feet of 30-inch sewer line would cost an estimated $830,000, Noffsinger said.
"It's expensive to build roads and improve the infrastructure. But, we have an opportunity to capture enough of the increased assessment with the planned development in the area to pay for them," Noffsinger said.
He added the only planned new development is a new Lakeside Chevrolet facility, which is expected to locate north of Rice Ford, on Ind. 15. The proposed frontage road would help alleviate traffic congestion on the state highway and help provide an alternate route to the Da-Lite manufacturing plant.
Commissioner Jerry Kralis questioned whether Rice Ford was supporting the planned development.
"I'm wondering how Rice is liking this idea, with a competitor moving in right next to them," he said.
Noffsinger said that in his preliminary discussions with Rice, they have not expressed any concern about that issue.
"The next step in the process is to get an inventory of the land in the area and determine what the assessment is and who the owners are," Noffsinger 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.
Noffsinger said he will try to have all preliminary paperwork completed and ready for the commission by its December meeting. He added that the goal is to have the TIF district declared by the March 1 deadline. [[In-content Ad]]
The Warsaw Redevelopment Commission authorized taking the initial step in declaring a second tax increment financing district on the north side of Warsaw.
The commission was given the estimated costs for the initial infrastructure improvements in the district by city planner Jeff Noffsinger.
To construct a frontage road on either side of Ind. 15 between U.S. 30 and CR 300N, an access road to the proposed sewage treatment facility, and 3,000 feet of 30-inch sewer line would cost an estimated $830,000, Noffsinger said.
"It's expensive to build roads and improve the infrastructure. But, we have an opportunity to capture enough of the increased assessment with the planned development in the area to pay for them," Noffsinger said.
He added the only planned new development is a new Lakeside Chevrolet facility, which is expected to locate north of Rice Ford, on Ind. 15. The proposed frontage road would help alleviate traffic congestion on the state highway and help provide an alternate route to the Da-Lite manufacturing plant.
Commissioner Jerry Kralis questioned whether Rice Ford was supporting the planned development.
"I'm wondering how Rice is liking this idea, with a competitor moving in right next to them," he said.
Noffsinger said that in his preliminary discussions with Rice, they have not expressed any concern about that issue.
"The next step in the process is to get an inventory of the land in the area and determine what the assessment is and who the owners are," Noffsinger 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.
Noffsinger said he will try to have all preliminary paperwork completed and ready for the commission by its December meeting. He added that the goal is to have the TIF district declared by the March 1 deadline. [[In-content Ad]]