Redevelopment commission gets TIF info

They have the numbers.

Now it’s a matter of putting the plan into action.

Jay County Redevelopment Commission reviewed an analysis Thursday detailing dollar amount estimates that would result if the county establishes more tax increment financing (TIF) districts.

If pursued, the county could create three new TIF districts, which would encompass the four locations planned for commercial solar energy farms.

The county could generate up to $3 million in TIF dollars annually with the new districts.

TIF districts capture additional property tax revenue created by improvements, such as solar facilities, and set it aside to be used to help fund initiatives related to the district, with redevelopment commission overseeing those dollars.

Prospective solar farms include:

•Skycrest Solar, a $150 million, 155-megawatt facility in development by Invenergy, will be located on 2,500 acres in Penn and Jackson townships in northwest Jay County

•Sun Chief Solar, a 100-megawatt facility from Scout Clean Energy planned on 1,200 acres near the company’s Bitter Ridge Farm in Jefferson and Richland townships northeast of Redkey

•Rose Gold Solar, a $173 million, 150-megawatt facility developed by Leeward Renewable Energy, set for 1,430 acres in Knox and Richland townships just north of Dunkirk

•New Jay Solar, a $67.5 million, 39-megawatt facility from Hodson Energy slated for 311 acres in Richland Township just east of Dunkirk

Skycrest Solar and Sun Chief Solar would each be encompassed in their own TIF districts, while Rose Gold Solar and New Jay Solar would be bundled into the same TIF district.

Jason Semler of consulting firm Baker Tilly shared dollar estimates on how much the county could expect to see if it were to enact TIF districts in the farms’ locations.

Semler said the county could capture anywhere from $630,000 to just over $3 million from the three proposed TIF districts in one year.

Following 10-year tax abatements, the facilities would generate the following estimated net tax increments in their 11th year: Skycrest Solar, $966,600; Sun Chief Solar, $618,030; Rose Gold Solar, $1,084,120; and New Jay Solar, $362,290. 

Semler noted the county chooses annually whether to pass through a percentage of the TIF district’s dollars to overlapping taxing units, such as Jay School Corporation or Jay County Public Library.

Regarding the proposed TIF districts around solar facilities, if the incremental assessed value were to be fully passed through to overlapping taxing units after the abatements are finished, taxpayers in affected townships could see a decrease between 4 cents and 13 cents in their total tax rates per $100 assessed value.

“If we create a TIF area, we’re not increasing anyone’s taxes, but we’re delaying when the taxes could be reduced,” explained Semler.

Addressing questions from commission members about whether recently signed Senate Enrolled Act 1 would impact tax dollars from solar facilities, Semler noted the county shielded itself because of language used in economic development agreements signed with each company.

Semler suggested the county look into additional TIF districts if it has several capital projects it would like to pursue.

“It really goes back to, do you have county projects that would benefit this area that you could use this money for?” Semler said. “Because if you do, this is a good revenue stream…”

Currently, the county has one TIF district, which includes about 191 acres southwest of Portland in Greene Township. Dollars generated in past years have been used to pay off bonds associated with road work and sewer improvements near the ethanol plant in that area. After Jay County made its final bond payment in 2023 for the project, Jay County Redevelopment Commission began looking into options for how to spend the TIF district funding for the next 12 years.

Semler shared an annual tax increment report on the county’s current TIF district at the meeting. 

The annual combined tax increment for taxes payable year 2024 came out to $573,449, with the following year estimated by Semler at $545,340.

Jay County updated its economic development plan for the TIF district in August, laying out a list of potential projects to pay for with TIF dollars, including: transportation enhancements, public safety enhancements, utility infrastructure, highway garage improvements, a new building for Jay County Solid Waste Management District, a new public safety building and planning and development of the county's 68 acres on the western edge of Portland.

Walker said he would like some time to look over the numbers. Redevelopment commission made no formal decision on the matter Thursday.

Commission members also agreed Thursday to send out a letter explaining the commission has determined there is no excess assessed value that may be allocated to overlapping taxing units in the county’s current TIF district, an annual decision made by the commission.

Also Thursday, redevelopment commission members Harold Towell, Ted Champ, Doug Horn, Chuck Huffman and Walker:

•Heard from Jay County Commissioners president Chad Aker about pending awards from Regional Acceleration and Development Initiative (READI) 2.0. Aker said he learned after a conversation with state representative J.D. Prescott awards for READI 2.0 should be announced next month.  

•Agreed to pay a $6,479.50 claim from CWC Latitudes.