Economic development options considered
The merger committee is thinking of setting aside some areas of the proposed new city as economic development areas. These select areas would be set up as tax-increment financing, or TIF, districts. In a TIF district all of the property taxes generated in the district remain in the district and are used for infrastructure improvements, such as roads and sewers.
Because all of the taxes remain in the district, improvements can be made a faster pace. However, the taxes used to improve the drainage, for example, are not available to libraries, fire departments, etc. But in turn it makes these areas more attractive to investment by private individuals and businesses.
The specific areas mentioned by Pat Sherman during Thursday evening’s meeting were areas around Bargersville, old Smith Valley and “Old-Town” Greenwood. It would also be reasonable to expect that areas along State Road 37 would also be declared TIF districts to attract business development.
It should be noted that establishing TIF districts is not dependent upon merger with Greenwood, but it does require incorporation. So, whether White River Township joins with Greenwood or incorporates as the town of Center Grove, it is likely that TIF districts will play a part in encouraging growth in select areas.
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2 Responses to “Economic development options considered”
TIF districts,if used properly and in moderation, are an excellent economic development tool for bringing a long term positive effect to a particular area and community. I have used this tool before to finance infrastructure development in both industrial areas and residential areas.
However, it seems a little premature to be discussing economic development tools at this point. This highlights another complaint I have about this committee. It seems the committee is not purely concerned with the issues of merger but are planning out future policies of the community. Maybe they should focus more on the issues of merging existing services, conduct of elections, and the mode of governance of a merged entity and leave the decision making regarding policy to those leaders who are eventually elected to run it (if the merger even passes).
Comment made on July 1st, 2009 at 5:17 pmIt’s obvious by now this committee is working as if the merger is all but complete. Even City Council members are saying they are “committed” to a merger and wouldn’t even listen to Mr. Rhoton.
Comment made on July 3rd, 2009 at 1:08 amLeave a Comment