TIF districts...and random thoughts

We see by the papers, as Will Rogers used to say, that the city is to be blessed with additional TIF districts. Apparently, 22 of them are not getting the job done - whatever that "job" is.

The theory involved is pretty rosy.  A project is carried out which will increase the value of a specific property.  The geographic TIF district is larger than the specific piece of property - under the assumption that the project will actually increase the value of the neighborhood (?).  Originally, the increased property tax revenue from the project is used to pay the cost of that project.  When that’s done, then all the revenues, old and new, flow to the governmental units, and everybody’s happy with a few more cops, maybe a new fire truck, or even better public library service.

Maybe some day it will work that way in Indianapolis.  Don’t hold your breath.

Now that we’ve had TIF districts working for us for several decades, at least three major municipal functions which depend heavily on property tax revenues - libraries, parks and transit - are relatively poverty stricken

And while boasting a $5 billion "debt portfolio," a part of which is presumably TIF debt - actual revenues are accumulating at the Indianapolis Bond Bank.  Revenues exceeding the current interest cost, to the tune of something over $20 million per year for the last 3 years at least, are sitting in a slush fund of nearly $100 million, waiting for another needy real estate developer to come along.

Some other questions have come to mind with the announcement of the proposed new districts.  One will apparently include the area between Illinois and College, and from 38^th  to Broad Ripple. One potential project in this area is a "...mixed use development..." located around 49^th and College.  Another is a "...mixed use parking structure..." in Broad Ripple.

We fail to see how either of these proposals will benefit a home owner at 39^th and Pennsylvania or at 56^th and Broadway, or anywhere along Meridian St..  Nor is that the only potential issue.

If, in fact, the presumption is that these things will benefit the entire district, what lies in the future?  Will all property in the district now be reassessed to take into account the property value increase accruing from these "mixed use" projects?  (A sneaky way to get around tax "caps" based on assessed value?)

At the risk of being taken seriously by city leaders, we’ll make a suggestion.  Make the whole city one TIF district. The project to be financed would be a dome over the Mile Square.  (That’s the center of the city - North St. to South St. and East St. to West St.)  That would really be a tourist attraction - especially if it had a movable roof!  Maybe even bigger than Union Station!!

By the way, does anyone know when and for what event the roof over the football field was actually last opened?

Comments

[hire web developer]

Great thoughts. In fact i would say TIF district to hire local candidates for the betterment of the area.