Chesterton Tribune

 

 

Redevelopment Commission to hear financial impact of proposed TIF near hospital

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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 Hospital.

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 said.

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.

 

Posted 4/18/2013