July 23, 2014 at 2:10 p.m.
No fuss over TIF proposal (03/17/06)
Portland Redevelopment Commission
By By RACHELLE HAUGHN-
The voices of the taxing entities were silent.
Perhaps it was the calm before a storm.
Or just a surrender.
Compared to the first two meetings of the Portland Redevelopment Commission — which were spent hearing objections from local residents and taxing entities — Thursday’s meeting was relatively quiet.
A public hearing on the declaratory resolution was held. Very few comments and no objections were heard.
After hearing Greg Guerrettaz of Financial Solutions Group, Inc., Indianapolis, explain a recently-completed tax impact study, there were a few questions.
Bob Quadrozzi, commission president, asked if TIF would affect other cities and towns in Jay County besides Portland.
Guerrettaz said Portland’s TIF would not affect the tax rate of other towns and cities.
However, the study Guerrettaz prepared acknowledged that several other taxing units — the county, school corporation, township, city, and library — would be affected.
He concluded that while those taxing entities would not receive about $200,000 each year that they would otherwise get if the TIF district did not exist, that would not be significant in terms of their overall budgets.
A Portland woman who lives inside the proposed boundaries of the TIF district asked how TIF could affect her.
“Maybe a 1 1/2 percent increase in the tax rate at worst case scenario,” Guerrettaz said.
If the TIF district doesn’t generate as much assessed value personal property as it does real property, this could cause taxes to increase, Guerrettaz said this morning. The tax on the increase in real property assessment is what is captured and used to fund the district.
Commission secretary Lola Joy asked if increased assessed value on personal property, in addition to real property, would be captured in the TIF district.
Sue Beesley, attorney with Indianapolis law firm Bingham McHale LLP, said personal property could legally be captured, but it is not something being considered at this time.
After the public hearing, the commission voted unanimously to move forward the confirmatory resolution, which confirms the declaratory resolution. This document will next go to the Portland City Council for review.
Also Thursday, the commission:
•Heard Guerrettaz explain what kind of impact TIF could have on the the city of Portland, Jay School Corporation and Jay County Public Library.
“The biggest impact really falls back on the city,” he said. The city will likely have one of the lowest increases in assessed value, Guerrettaz said. Part of Portland will be in the TIF district.
His study estimates that the redevelopment commission would be able to capture property tax revenues on $6,427,080 in assessed valuation in 2008. That is estimated to rise steadily to more than $7 million by tax year 2011.
•Learned a Portland man doesn’t plan to pursue what he has called a remonstrance against the TIF district.
At the Feb. 22 commission meeting, Ron May presented his document to commission members. He did not attend Thursday’s meeting.
“On (March 10, May) told me he was not going to pursue the remonstrance regarding the TIF,” Bruce Hosier, mayor of Portland, told commission members.
•Voted to hire Financial Solutions Group and Sturtz Public Management Group to act as consultants to the commission.
FSG will be paid $21,000 to $32,000 for work which already has been done up to this point and for work expected to be done this year. The hourly rates will range from $35 to $135, depending on who is providing the services and what the tasks are.
Kristi Sturtz, of SPMG, is being paid $75 per hour as needed.
She also has a separate one-year contract with the city to serve as community planning director. For that contract, she is being paid $60 per hour, but no more than $15,000 per year. One of her main tasks as planning director was to help with the creation of the redevelopment commission.
In a related matter, the commission tabled a contract with Bingham McHale until Beesley could put her fees into writing.
Hosier said the city will pay the fees for now, then be reimbursed with TIF funds later. The first draw on the TIF funds is expected in June 2007.[[In-content Ad]]
Perhaps it was the calm before a storm.
Or just a surrender.
Compared to the first two meetings of the Portland Redevelopment Commission — which were spent hearing objections from local residents and taxing entities — Thursday’s meeting was relatively quiet.
A public hearing on the declaratory resolution was held. Very few comments and no objections were heard.
After hearing Greg Guerrettaz of Financial Solutions Group, Inc., Indianapolis, explain a recently-completed tax impact study, there were a few questions.
Bob Quadrozzi, commission president, asked if TIF would affect other cities and towns in Jay County besides Portland.
Guerrettaz said Portland’s TIF would not affect the tax rate of other towns and cities.
However, the study Guerrettaz prepared acknowledged that several other taxing units — the county, school corporation, township, city, and library — would be affected.
He concluded that while those taxing entities would not receive about $200,000 each year that they would otherwise get if the TIF district did not exist, that would not be significant in terms of their overall budgets.
A Portland woman who lives inside the proposed boundaries of the TIF district asked how TIF could affect her.
“Maybe a 1 1/2 percent increase in the tax rate at worst case scenario,” Guerrettaz said.
If the TIF district doesn’t generate as much assessed value personal property as it does real property, this could cause taxes to increase, Guerrettaz said this morning. The tax on the increase in real property assessment is what is captured and used to fund the district.
Commission secretary Lola Joy asked if increased assessed value on personal property, in addition to real property, would be captured in the TIF district.
Sue Beesley, attorney with Indianapolis law firm Bingham McHale LLP, said personal property could legally be captured, but it is not something being considered at this time.
After the public hearing, the commission voted unanimously to move forward the confirmatory resolution, which confirms the declaratory resolution. This document will next go to the Portland City Council for review.
Also Thursday, the commission:
•Heard Guerrettaz explain what kind of impact TIF could have on the the city of Portland, Jay School Corporation and Jay County Public Library.
“The biggest impact really falls back on the city,” he said. The city will likely have one of the lowest increases in assessed value, Guerrettaz said. Part of Portland will be in the TIF district.
His study estimates that the redevelopment commission would be able to capture property tax revenues on $6,427,080 in assessed valuation in 2008. That is estimated to rise steadily to more than $7 million by tax year 2011.
•Learned a Portland man doesn’t plan to pursue what he has called a remonstrance against the TIF district.
At the Feb. 22 commission meeting, Ron May presented his document to commission members. He did not attend Thursday’s meeting.
“On (March 10, May) told me he was not going to pursue the remonstrance regarding the TIF,” Bruce Hosier, mayor of Portland, told commission members.
•Voted to hire Financial Solutions Group and Sturtz Public Management Group to act as consultants to the commission.
FSG will be paid $21,000 to $32,000 for work which already has been done up to this point and for work expected to be done this year. The hourly rates will range from $35 to $135, depending on who is providing the services and what the tasks are.
Kristi Sturtz, of SPMG, is being paid $75 per hour as needed.
She also has a separate one-year contract with the city to serve as community planning director. For that contract, she is being paid $60 per hour, but no more than $15,000 per year. One of her main tasks as planning director was to help with the creation of the redevelopment commission.
In a related matter, the commission tabled a contract with Bingham McHale until Beesley could put her fees into writing.
Hosier said the city will pay the fees for now, then be reimbursed with TIF funds later. The first draw on the TIF funds is expected in June 2007.[[In-content Ad]]
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