NEW ALBANY —
The town hasn’t waited idly since 2008, as it has evaluated infrastructure needs in the TIF district, Lawrence continued. But the five-year extension provides better opportunities for financing and turning plans into projects, he added.
The bill is slated to receive a second vote today and a final ballot tomorrow in the Senate. If approved, the Indiana House will then consider the legislation possibly as early as next week.
The bill received a 13-0 vote of approval from the Senate Appropriations Committee last week.
Once a TIF district is declared, property taxes in the area are frozen. Municipalities may borrow money in the form of bonds to foot infrastructure projects in the TIF district in hopes of enticing businesses to the area.
As property values increase through the additions, the municipality gets to retain the property taxes that are in excess of the frozen rate that was established once the TIF district was declared.
The municipality then pays off the bonds with the increment in property taxes it collected.
Grooms — a former Jeffersonville City Councilman — said when TIF districts are expanded or their existence extended, some people worry about the ramifications it creates on the tax base.
“I know that’s always a point of concern, but in this situation, the redevelopment of the Colgate center is a very large, expensive, massive project, and this actually may be the difference in developing that area and not developing that area,” he said. “The hope of course is that, as the development occurs, over the long haul those bonds will be paid off and those revenues from those property taxes will benefit the entire community and not just the TIF district.”