Bright report from TIF district (11/11/2008)

The economy may be in trouble, but the city's tax increment financing district is not.

In fact, Portland's TIF district has generated an increase in assessed valuation that is $3.1 million more than projected this year.

"Everything, by design, looks really good," Greg Guerrettaz of Financial Solutions Group said via telephone, while updating members of the Portland Redevelopment Commission on the financial progress of the TIF district on Monday. "We're headed in the right direction. It looks like, at this point in time, we can weather any storm."

During 2008, the district generated $9,571,250 in assessed value, up from the projected figure of $6,427,080. A large chunk of the increase appears to have come from the Wal-Mart Supercenter. According to figures provided to the redevelopment commission, Wal-Mart generated $7,919,200 in assessed valuation for the TIF district this year.

Guerrettaz said the TIF district is doing so well that the city should have no problem making its bond payments. The commission last was updated on the financial progress of the district in June. It also was doing financially well then.

When asked by commission president Lola Joy if the economic slump could affect the amount of the increased assessed valuation captured in the district, Guerrettaz said the fact that property taxes were capped this year could affect the valuation. Also, business revenues may change, he said.

After hearing the report from Guerrettaz, commission members voted to accept the report.

"That's a good report," said commission member Joe Johnston.

Also Monday, Guerrettaz announced that $110,000 in construction funds are leftover from the widening of Industrial Park Drive.

Bruce Hosier, mayor of Portland, said he would like some of the funds to be used to erect a security fence around the new lift station along Industrial Park Drive.

The commission voted to have the city seek quotes for a fence.

Joy suggested that the remaining funds be used for a bond payment. "I'd rather have a cushion" in case property values should drop, Johnston said.

In other business, Mike Simons, vice president of the commission, asked Hosier for an update on the status of the extension of Lafayette Street west to Industrial Park Drive.

Hosier said the project is being handled by the Indiana Department of Transportation, which is funding most of the project through a grant. INDOT officials will choose which companies work on the project, he said.[[In-content Ad]]