The Porter County Redevelopment Commission will find out about the financial
impact of its first proposed tax increment finance (TIF) allocation area at
its meeting on Thursday at 8:30 a.m.
The RDC had sought the financial advising services of Cender and Company of
Merrillville whose executive Dan Botich will give a report on the data
collected for the proposed allocation area around the Porter Regional
Preliminary maps show the TIF boundaries run along the U.S. 6 right-of-way
from Ind. 149 to Calumet Ave. 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.
Botich said his report would determine what the base value assessment for
that area is based on the number of real property parcels in the area. From
that base assessed line, any growth in the assessed value becomes
“incremental” assessed value and can be captured by the RDC.
Increment revenues can be used to pay for capital improvements in the
allocation area that can attract new developments.
Botich said his report looks at the tax increment pro forma, or financial
assumptions and projections, of how much revenue will be generated over the
next 20 years taking into account the abatement from the hospital. From that
data, Botich said they can estimate incremental values future developments
may bring, but the report will only assume the development of the hospital.
The Porter County Council had granted the hospital a 10-year tax abatement
that is phased out gradually.
With the incremental value data from the hospital abatement, the report will
show what the impact would be to local taxing units like Liberty Twp. and
the Duneland School Corporation, which has been a concern to the RDC and a
few members of the County Council.
Botich said that according to statute, the RDC can grant up to 15 percent of
tax increment that could be used to aid educational institutions.
The RDC will also hear from its legal advisor Gregg Sobkowski, of Hodges and
Davis law firm, who will advise on what the commission must do in order to
legally establish at TIF allocation area.
RDC President Ric Frataccia said the board would be required to create a
plat of the allocation area showing all the streets and alleys to be
included. Once that is approved, the plat would go to the County Plan
Commission and then to the County Commissioners for approval, Frataccia
Local officials such as board members of the Duneland School Corp. as well
as members of the public have been invited to attend the meeting which will
be in Room 205 of the County Administration Building located 155 Indiana
Ave. in Valparaiso.