From the Indianapolis Business Journal:
The developer of a $17 million mixed-use project proposed for Broad Ripple is expected to seek a city subsidy—support that at least one City-County councilor believes should be reserved for neighborhoods starved for investment farther south.
At-large City-County Councilor John Barth pushed the North Midtown TIF through the council in January on the promise that the property tax revenue it captures would be used to invigorate such areas as 38th and Illinois streets and 30th Street and Central Avenue.
Barth argues Broad Ripple is the wrong area to route tax-increment-financing revenue, given that it is doing well on its own and has no little trouble attracting private investment.
At issue is Browning Investments’ proposal to rezone 1.9 acres northeast of College Avenue and the Central Canal to allow for a single 35,000-square-foot retail space—likely a natural foods grocery—plus 70 to 88 apartments.
Additional property taxes generated in TIF districts go toward paying off bonds issued to cover the costs of infrastructure and other government spending.
“My absolute top priority is spending money in the district in areas that have been without investment for decades,” said Barth, a Democrat. At this point, Barth does not support Browning’s proposal, and he said, “I’m going to do everything I can to stop it.”
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Tax-increment financing has supported numerous projects downtown, but within the North Midtown TIF, new tax revenue that could be used to pay off bonds is limited. The largest source of new revenue is a parking garage with first-floor retail on the southwest corner of College Avenue and Westfield Boulevard. Keystone Construction received $6.5 million in city parking-meter revenue to help pay for the $15 million project.
The additional property-tax revenue from Keystone’s garage could support a bond issue of $4 million to $5 million, Kintner said.
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See the full article here:
http://www.ibj.com/development-may-spawn-tif-tug-of-war/PARAMS/article/41281
