From a lengthy article in the Indianapolis Business Journal:
...the primary risk in creating TIF districts is that developments inside their boundaries won’t pan out, tax revenue in districts won’t rise, and local governments will be on the hook for infrastructure investments.
That’s happened a lot since the 2008 recession, and investors are wary of bonds issued on new TIF districts, unless they’re backed by the local government’s entire property tax base, said Tom Enright, executive vice president of fixed income and capital markets at City Securities Corp. in Indianapolis.
“Most of the issue is on the slowdown of economic development across the country,” Enright said.
Indianapolis has 30 active TIF districts, and nine of them, or 30 percent, aren’t covering their current obligations. The gaps range from 7 percent for a consolidated airport fund, which is composed of seven separate TIF districts and covers the United Airlines maintenance hub, to 64 percent in the Fall Creek East housing TIF.
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See the full article here:
http://www.ibj.com/article?articleId=35135
(this is a paid article)
