July 23, 2014 at 2:10 p.m.
Re-development needed (10/3/05)
Editorial
Exciting as it is to ponder new hotel developments and activity on and around the site of the new Wal-Mart Supercenter, Portland would be wise not to lose sight of the needs of downtown.
Every community’s downtown business district is its heart and soul, and when all commercial development happens on the fringes, the vitality and business health of that core neighborhood are at risk.
Fortunately, there are tools available to help assure a brighter future for downtown. Unfortunately, those tools haven’t yet been put to work locally.
The most obvious — a step which was repeatedly urged by former Community Developer Wayne Bailey — is the establishment of a “TIF” re-development district. “TIF” stands for tax increment financing, the fiscal force which could help downtown property owners find a new and brighter future.
What Bailey recommended was the creation of a downtown re-development district, roughly along the lines of the historic commercial district which is on the National Register of Historic Places.
Properties within that district would see their property tax rates frozen. As assessed valuations for the entire city rose over time, other property taxpayers would see their rate drop, while the rate stayed the same for properties within the district.
That would result in a marginally-higher tax burden for downtown properties, but the funds from those marginally-higher taxes would go toward improvements in the downtown district. Not only that, it’s possible for “TIF” revenues to pay off bond issues, so a redevelopment district can get its hands on funds now rather than waiting for the money to accumulate. Those funds could be available for a variety of projects, as we understand it, ranging from a revolving loan fund to outright grants to property acquisition.
As Bailey pointed out, it’s the most effective method available to Indiana communities interested in making needed public investments.
Would it result in higher taxes? Yes. But only on the properties within the targeted district. And, properly managed, the investments made within the district with the funds generated by a “TIF” would result in direct benefits for the properties which are being taxed.
With exciting things happening on the north side of town and the west side, the time is right to make sure downtown doesn’t get left behind. — J.R.
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Every community’s downtown business district is its heart and soul, and when all commercial development happens on the fringes, the vitality and business health of that core neighborhood are at risk.
Fortunately, there are tools available to help assure a brighter future for downtown. Unfortunately, those tools haven’t yet been put to work locally.
The most obvious — a step which was repeatedly urged by former Community Developer Wayne Bailey — is the establishment of a “TIF” re-development district. “TIF” stands for tax increment financing, the fiscal force which could help downtown property owners find a new and brighter future.
What Bailey recommended was the creation of a downtown re-development district, roughly along the lines of the historic commercial district which is on the National Register of Historic Places.
Properties within that district would see their property tax rates frozen. As assessed valuations for the entire city rose over time, other property taxpayers would see their rate drop, while the rate stayed the same for properties within the district.
That would result in a marginally-higher tax burden for downtown properties, but the funds from those marginally-higher taxes would go toward improvements in the downtown district. Not only that, it’s possible for “TIF” revenues to pay off bond issues, so a redevelopment district can get its hands on funds now rather than waiting for the money to accumulate. Those funds could be available for a variety of projects, as we understand it, ranging from a revolving loan fund to outright grants to property acquisition.
As Bailey pointed out, it’s the most effective method available to Indiana communities interested in making needed public investments.
Would it result in higher taxes? Yes. But only on the properties within the targeted district. And, properly managed, the investments made within the district with the funds generated by a “TIF” would result in direct benefits for the properties which are being taxed.
With exciting things happening on the north side of town and the west side, the time is right to make sure downtown doesn’t get left behind. — J.R.
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