By BOB SHRALUKA
WZBD.com
Decatur City Council has taken the initial step to providing a residential TIF expansion for the city’s redevelopment commission.
Once a Tax Increment Financing district is set up, it becomes a way to capture tax benefits of real estate improvements. Those benefits are then used to pay for the present cost of those improvements.
The benefits can be used to channel funding toward improvements in distressed or underdeveloped areas where development would not otherwise occur.
For years, TIFs covered only businesses in a district. But a couple of years ago, the Indiana Legislature allowed the use of residential TIFs.
So the local redevelopment commission wants to expand its TIF district to include subdivisions being developed in the southern portion of Lake Shores, on the city’s east side, and in the area on the north side of Cross Creek in the northwest part of the city.
“The Legislature realized the critical need for housing (expanding to residential TIFs),” Mayor Dan Rickord said. “This is a good tool to use to use to expand the housing market.”
A resolution approving the expansion was passed by council on two of three required readings, then a public hearing was scheduled for the Sept. 3 meeting. If no opposition is heard at that time, the third reading will be approved.
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