From the Northwest Indiana Times:
City and Portage Township Schools officials will sit down to work out how the school district can regain some of the tax money lost in tax increment financing districts.
Portage Township Schools Superintendent E. Ric Frataccia said he favors using TIF districts as an economic development tool in communities, but is concerned that the school district is being shorted tax dollars.
"We need this money now," he said.
John Shepherd, Portage's economic development adviser, said he understands Frataccia's concerns.
"Every single dollar is much more precious in every community," he said.
The Portage Redevelopment Commission approved the expansion of the city's TIF district last week to take in an additional 17 parcels.
Shepherd said TIF districts do have an impact on tax dollars received by the school district. When a TIF district is formed or expanded, the portion of the real property taxes sent to the TIF districts are those above the base value of the property when the TIF district was created, he said.
While the base value may rise over time, the bottom line is the school district will receive somewhat less in tax dollars than what it would have received if a TIF district didn't exist, Shepherd said.
Frataccia estimated Portage schools have received some $1 million less in tax revenue since the Southport Allocation District, the formal name for the city's TIF district, was created in 1991.
Shepherd said he hasn't calculated the amount or an annual amount the school district may be losing.
While the city hasn't in the past rebated cash to the school district to make up the difference, Shepherd said, the city has assisted with projects that have been beneficial to the schools, including stormwater projects and the recent Airport Road project.
Shepherd said Portage is ready to sit down with school officials to negotiate a rebate from the city's TIF district tax collection. Any rebate, he said, would not be retroactive to the TIF district's inception, but rather from this point forward.
"There are quite a few cases in Indiana where the TIF district will share revenue with their school district," Shepherd said.
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http://www.nwitimes.com/news/local/porter/portage/schools-want-to-recoup-funds-from-portage-tif-district/article_a5014fcd-cd57-5c1a-b707-22a5a8f8c305.html
