Members of the Porter County Redevelopment Commission spent two hours Thursday trying to grapple with the complexities of how a tax increment finance allocation area around the new Porter Regional Hospital in Liberty Twp. would affect the local taxing units.
Financial advisor Dan Botich, of Cender and Company, which the County Commissioners hired to do the impact study, presented data telling what to expect with the ten-year tax abatement granted by the County Council and what impacts there would be should the TIF be established for the next 20 years.
As the preliminary maps by the County Plan Commission have shown, the proposed TIF boundaries run along the U.S. 6 right-of-way from Ind. 149 to Calumet Ave. at its eastern boundary. The allocation area widens when it gets to Meridian Road to County Road 900 North to the north and areas of County Road 700 North to the south.
Using the hospital property in his data findings from the County Auditor’s office, Botich said the March 1, 2012 assessment data on the “Liberty Twp. Allocation Area,” made up of 413 real property parcels, had $108,737,100 as its gross assessed value, with a net assessed value of $79.3 million after $29.4 million in deductions and exemptions were applied.
The net residential assessment value at that time was $31.3 million with $48 million as the AV for commercial, rental and other types of property.
In this year’s 2012 pay 2013 taxes, the hospital was 90 percent complete on the March 2012 assessment date with a net AV of $34,180,200, which generated $595,419 in taxes due, Botich reported.
For the 2013 pay 2014 taxes, the completed hospital starts its ten-year abatement and according to Botich’s figures the taxes owed will be reduced to $89,302 as the net assessment is $5,126,400.
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