TIF education

A local group got a primer Thursday on tax increment financing (TIF) districts and its role in a planning process.

Wes Schemenaur, Portland’s city attorney, presented Portland Plan Commission with information on TIF districts and redevelopment commissions and its role in the process of approving Portland's Downtown Economic Development Plan.

Schemenaur explained that TIF districts are designed to capture increased taxes paid on improved properties in a designated area. In Portland’s case, the TIF district was created in large part to capture the additional taxes created via construction of Walmart and the surrounding area. The district generally includes the area of Votaw Street, Industrial Park Drive and Lafayette Street stretching east from Ja-Mar T.V., Appliances and Bedding and the Meridian Street corridor from near county road 100 North to just south of Water Street.

The taxes captured are then administered by the city’s redevelopment commission — members are appointed by the mayor and city council — in an effort to improve the district. Projects the redevelopment commission has provided funding for recently include the Meridian Street storm sewer project, construction of a new hangar at Portland Municipal Airport and work to renovate two buildings in the downtown area.

Schemenaur noted that the redevelopment commission has been working on updating its economic development plan, which lays out the various types of projects and initiatives on which it can use TIF dollars.

Portland Redevelopment Commission approved a declaratory resolution for its economic development plan in December. (The plan addresses issues including vacant/dilapidated buildings, the need for more walkability/bike-ability, barriers to entry for small business and a lack of housing options and sets out goals such as beautifying the city, creating an environment that encourages small business and increasing housing options.) It must then be approved by Portland Plan Commission and Portland City Council before returning to the redevelopment commission for a confirmatory resolution.

Schemenaur noted that the plan commission’s job is to determine if the economic development plan meshes with the city’s comprehensive plan. If so, the plan commission can approve it and send it to the city council. If not, the plan commission can send it back to the redevelopment commission for revision.

Plan commission members Bart Darby, Steve McIntosh, Kyle Cook, Jerry Alexander, Kent McClung, Randy Geesaman and Ashley Hilfiker, absent Matt Goldsworthy and Ron Laux, were asked to review the plan — it is available at portlanddowntownplan.com — for discussion at a future meeting.

Jay/Portland Building and Planning assistant director Pati McLaughlin noted that during the process of developing the updated economic development plan, the redevelopment commission identified a few areas in which it suggested changes to the city’s zoning ordinance. One of those, she said, is to make housing a permitted use in the downtown area. (Currently, a special exception would need to be approved by the board of zoning appeals.)

Geesaman, who served two terms as mayor of Portland, noted the sentiment that such restrictions may deter developers from bringing projects to the city but also agreed with Jay/Portland Building and Planning director John Hemmelgarn, who said having some restrictions in place can help make sure buildings are being used properly and safely.

Schemenaur said that new classifications could be put in place to allow certain uses in the downtown area. Cook suggested looking at other communities that have made similar changes, with McClung noting the changing business climate and the importance of getting people downtown.

McLaughlin asked the plan commission to think about and communicate any suggested changes to the zoning ordinance as she and Hemmelgarn are in the process of reviewing them for potential updates.

Geesaman also asked about the status of the CB Development project that had called for 35 to 43 condominiums on property off of county road 75 South near Jay County Junior-Senior High School. The project was first presented to the plan commission in June 2021 and was last directly discussed in a public meeting in April 2023 when Jay County Commissioners OK’d funding for a water feasibility study regarding the possibility of running a looped water system to the proposed condominium development and the Beacon Heights addition.

“It’s been real quiet,” Hemmelgarn said.