From the Elkhart Truth:
Elkhart County leaders are drawing up a contract with a consulting firm for a study that will help officials understand the financial impact of property annexations.
The study is the result of a request earlier this year from several businesses in the Northeast Tax Increment Financing District near C.R. 17. The Elkhart Sports Center on Fremont Court and 10 nearby businesses asked the Elkhart County Redevelopment Commission in February to be annexed to the city of Elkhart. Because of the tax cap, the annexation would allow the group of businesses to save $17,131 in property taxes and other fees annually. The county, however, would lose out on $23,441 each year, and the city would gain $6,310 annually.
Questions surfaced about future annexation requests and how they could affect tax rates and revenues. County redevelopment staff is writing a contract with Umbaugh and Associates, a consulting firm with three offices in Indiana and Michigan.
Mike Huber, redevelopment commission president, said he has spoken with city officials who have indicated interest in studying the effects of annexations.
Umbaugh partner Todd Samuelson said the firm’s services will be based on an hourly rate. The staff includes experts in annexation, economic development and tax issues, he said.
The cost for the study has not been finalized, but Samuelson said Umbaugh’s services could cost between $15,000 and $20,000 depending on the scope of the project.
http://www.etruth.com/article/20120824/BUSINESS/708249967/0/FRONTPAGE
