Tuesday, August 21, 2007

I had a brainstorm about TIF districts

An interesting precedent may be set by the HS controversy. The project is going to be paid for with money from the Jefferson Pointe TIF. State law requires that a TIF be spend to benefit the district that it is drawn from, but city leaders argue that HS benefits Jefferson Pointe.

Just as everything has an impact on interstate commerce and is thus subject to federal regulation, any public works project would ultimately benefit Jefferson Pointe and be thus eligible for TIF money. Theoretically, Jefferson Pointe TIF money could be used to pay to fix a pothole on, say, Tillman Road as long as it can be established that a person who shops or works at Jefferson Pointe also uses that road.

Now, any attorneys reading this can feel free to tell me if I'm wrong. In the mean time, I propose that the Jefferson Pointe TIF be used to finance the police and fire pension fund. The morale of Fort Wayne's finest will be that much improved if they do not have worry about retirement, so they will do a better job protecting Jefferson Pointe.

8 comments:

Anonymous said...

That is no more or less tenuous than the argument that Harrison Square benefits Jefferson Pointe so, I'd say you're on solid footing.

Robert Enders said...

Actually, I'd say police morale is more important for Jefferson Pointe than HS is.

Jeff Pruitt said...

Sorry Robert but that would be illegal. The following statute describes what the money from within a TIF district can be used for:

IC 36-7-14-48 Version a
Allocation of property taxes; fund; use; credit calculation; limitation on distribution of fund

(b) The allocation fund established under section 39(b) of this chapter for the allocation area for a program adopted under section 45 of this chapter may be used only for purposes related to the accomplishment of the program, including the following:
(1) The construction, rehabilitation, or repair of residential units within the allocation area.
(2) The construction, reconstruction, or repair of any infrastructure (including streets, sidewalks, and sewers) within or serving the allocation area.
(3) The acquisition of real property and interests in real property within the allocation area.
(4) The demolition of real property within the allocation area.
(5) The provision of financial assistance to enable individuals

and families to purchase or lease residential units within the allocation area. However, financial assistance may be provided only to those individuals and families whose income is at or below the county's median income for individuals and families, respectively.
(6) The provision of financial assistance to neighborhood development corporations to permit them to provide financial assistance for the purposes described in subdivision (5).
(7) Providing each taxpayer in the allocation area a credit for property tax replacement as determined under subsections (c) and (d). However, the commission may provide this credit only if the municipal legislative body (in the case of a redevelopment commission established by a municipality) or the county executive (in the case of a redevelopment commission established by a county) establishes the credit by ordinance adopted in the year before the year in which the credit is provided.

Robert Enders said...

Ok, so the law is pretty specific then. So using the TIF to pay for HS is also illegal then?

MichaelK said...

It appears anything the money would be used for has to be in the "allocation area," from the way I'm reading it.

And I don't think HS is in the "allocation area." Right?

I live really close to JP, I was hoping to get some money. Then I could spend it at GameStop there and benefit JP and me. :D

Anonymous said...

Good point Robert. Where in that statute does HS fall? Also, the title of this statute is use of property taxes to establish a housing program, what has that got to do with HS?

Robert Enders said...

They plan to build condos to provide shelter for homeless young professionals. That's the housing program, I think.

Jeff Pruitt said...

HS is in the TIF district because the redevelopment commission expanded the Jefferson Pointe TIF to include the HS area...