RDC Meeting Notes and Audio, May 21, 2024 – TIF

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TIF, TIF, TIF    RDC Meeting Notes and Audio, May 21, 2024.  IF TIF is the solution, what is the problem?

This post at Brown County Matters. ” Economic Development and Transformation. This is probably one of the more important times in county history for citizens to become aware and get involved in influencing the future direction of the county. “

Background. 

    • Purdue – The-Use-of-Tax-Increment-Finance. Indiana law now makes clear that TIF is intended to fund infrastructure to promote development that would not occur but for the added infrastructure financed by the TIF revenues. Evidence that the development would not happen but for the establishment of the TIF district must be presented before the TIF district is approved. TIF is not meant as a source of revenue for responding to ongoing development nor as a substitute for other sources of infrastructure funding. TIF districts are required to expire once the infrastructure bond is repaid. TIF is not meant as a permanent source of revenue for the enacting government. 
    • Helmsburg Revitalization – Community-led with support from the RDC. A TIF requires the establishment of an Economic Development Area (EDA).  Helmsburg was the first EDA created by the county.   This initiative originated from the Community, not the RDC.

RDC members present. Ross Benson, Sue Lindborg, Jon Curry, Bill Cayne, Tim Clark (re-appointed in March).

Guests: Gary Huett, – president of the County Council; Blake Wolpert – Interim Commissioner; Clint Studabker – VP of Brown County RSD; Kevin Allen – contractor/consultant. Jimmy and Andrew Tilton (private developers).

Audio of the Meeting 2:14:53

RDC Agenda May 21, 2024

    • RDC Minutes for April 16, 2024 – Approved
      • My notes from the Apr 16, 2024 meeting.
      • Requirement – Application for RDC members to obtain a Public Offical Bond.
      • No votes were taken on the implied action steps.
      • 5:04 Economic Baseline – Tim.  I provided an overview of the value of developing an economic baseline. This includes a review of income, property assessments, and trends in the number and types of jobs within Brown County.  The intent is to provide a foundation that can be used to assess the economic strengths and weaknesses and possible priorities for development.  It would also be used to provide feedback on the results of investments in infrastructure.   Developing and maintaining a baseline presents an opportunity to re-establish a partnership with the IU/SPEA MPA graduate program to get help with information management and analytical support.  Better information technologies provide information in seconds instead of downloading individual PDF files and creating/updating Excel spreadsheets.
  • 27:50 Housing Partnership – Sue Lindborg
  • 39:28 RDC Handbook, Purpose, Advocacy, General Discussion – Ross Benson
  • 50:15 TIF Areas – Kevin Allen 
  • 1:32:45 – Next Steps – Steps in developing an EDA … (see references to Helmsburg).
  • 1:34:20 – Discussion – Comprehensive plan guides development, TIF Zones, Alignment, Conditions of Roads, Debate
  • 1:53 –  Closing – Sue Lindborg, Continuation – Little Opry Property,   Alleged septic failures in Annandale, Zoning challenges, Special Exceptions, Discussion/Criticism of Nashville’s Master Sewer Plan and “possible” legal challenges.  
    • Undermining Nashville’s Plan provides a premise for the county’s involvement.

Nashville Sewer Expansion Master Plan. The Nashville Town Council and Utility Serves Board (USB) commissioned this plan. USB members include Pam (Tilton) Gould, who has recused herself from decisions affecting her family’s properties.

      • The Little Opry property is within Nashville’s service area. They can also submit a funding application (preliminary engineering report) to the State.

County Comprehensive Plan.

    • County Council. Gary Huett asked Bill Cayne to help write the RFP for the Comprehensive Plan Grant. Bill maintains that more money is needed for road maintenance and paving county roads. (The condition of roads, bridges, budgets and overall policy is a separate issue.)
    • Brown County Community Foundation (BCCF). The BCCF has also been asked to fund (26k) the development of the comprehensive plan. The BCCF receives revenue from the county via the excess revenue generated from the Music Center. The State (OCRA) offers a 60K grant, and the county matching is around 6K.

Ross Benson, President of the RDC, advocates for the use of Tax Increment Financing (TIF). Revenue from a TIF results from any increase in assessed values in the EDA.  RDC members are appointed to one-year terms by the commissioners and council. Money received from a TIF can be used to pay off loans used to build infrastructure.

For example, on the old Little Opry property,  providing sewer service would increase the value of the Tilton property that they intend to lease to a developer who may build an apartment building. It is unclear at this point what if any, restrictions could be placed on what is built on the property. It is also unclear if the investment is made and the deal falls through,  the risk to the taxpayers.   What additional development in the area is expected to help pay off the loan? Given this property is within the Nashville sewer expansion project, what will be Nashville’s investment?

My Position. I support the position that any grand plans for economic development need to align with a “new” County Comprehensive Plan. An application for a grant is being developed. The Comp Plan represents the “voice” of the citizens (not developers or the RDC) as to what they want and do not want in terms of economic development in their areas/neighborhoods, the tax base, and quality of life. The Comp Plan guides Zoning.  Zoning identifies all the options for what can be allowed in a respective area. 

New Strategy for Plan Development. A new strategy may be needed to engage the citizenry. 

    • An option?: Council and Commissioners represent districts. Districts are further broken down into precincts.  A representative from both political parties could get involved in polling/surveying their constituents to identify their respective needs and wants.  Video presentations on one or more aspects of the planning process can be made available to be accessed 24/x7. Direct contact by person or mail could also help ensure that residents are informed about what is being planned, where they can go to get more information, and where/when they can share their respective concerns and questions.
    • Brown County Democrat. Additional coverage on the topic.
    • Concerned Citizen Groups. Too often, citizens are not aware of pending changes in their area until it is too late, nor are they made aware of what is needed to appeal a decision.

Regarding the economics of a TIF, we also need to see the business case to include the projected (and actual) revenue and costs.   A cash flow analysis over the projected phases of the “investment” is needed.

New tax? Remonstrance?   When borrowing money to support a TIF, is a new tax (the equivalent of a county referendum?) needed to be passed in order to finance the loan?  Are these types of loans subject to a remonstrance?

Non-Taxable Land—Economic Strength. Over half of our land is non-taxable, which is identified as a constraint. However, this attribute is what attracts people to stay or move here. It has also attracted development (Hard Truth Hills) whose owners have not requested a taxpayer subsidy. They developed their property in an area that has access to sewers.

When Forest Hills apartments were built in Gnaw Bone, didn’t the developer pay for the cost of the needed sewer plant upgrades? On any other developments in the county, were tax abatements provided?

What is the problem?   Income tax revenues and property assessments are increasing.  Manufacturing is now the largest employer in the county displacing education and health care.  What county taxpayer subsidies for development have been provided up to this point? What are the goals and calculations for economic sustainability?

Economic Development District (EDD). Brown County has been asked to support an EDD with Owen and Monroe County to help attract more federal and state grant money. The common aim is Trails, Nature, and Arts and Culture. This focus could indirectly encourage more regional residents to retire here, move here, commute to work, or work from home. 

What is the opportunity?  Gentrification?  At one end of the spectrum, is it a desire to develop every square inch of available land possible?   Would this Increase the cost of living (utilities and taxes)? Would it increase population and school enrollment,  increase the tax base, and result in more housing? Would it help fund overhead costs to include police, fire, medical, water, fire, sewer, road and bridge maintenance, and schools?   And exactly, how do you get around the fact of the constraint of  2-lane roads?   Do we add more stop lights, round abouts? Will residents get used to increased commuting/travel times?

P.S. And what is the effect of all this development on residents that stay or move here to avoid the effects of what many may perceive as over-development? When is enough, enough?

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