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2013 02 08

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Converted from paper version of the Broad Ripple Gazette (v10n03)

Midtown TIF Receives Bipartisan Support - by Thomas P. Healy

posted: Feb. 08, 2013

by Thomas P. Healy

A grassroots initiative to stimulate transformational Midtown enhancements received overwhelming bipartisan support at the City-County Council's January 28, 2013, meeting.

By a 23-5 vote, the Council passed Proposal 291, which establishes the North Midtown Tax Increment Finance (TIF) Allocation Area.

Midtown is the "city within a city" that includes Broad Ripple, Meridian-Kessler, Mapleton-Fall Creek and Butler-Tarkington. For the past five years, community leaders from these neighborhoods have collaborated on strategies to address common interests and concerns such as population decline and deteriorating neighborhoods.

In an era of reduced federal, state and local funding to stimulate development and repair infrastructure, the neighborhood allies felt a self-financing model like TIF was appropriate.

Creation of the TIF district allows increases in assessed value of commercial property within the allocation area (the increment) to be "captured." Instead of going into the general fund, these monies accrue in the TIF coffers for use in retiring a bond issued to fund improvements in the area.

Midtown TIF Receives Bipartisan Support - by Thomas P. Healy

The City makes its determination on the amount of the revenue bond it can issue based on the amount of increment generated.

For example, the City estimates that the mixed-use parking structure nearing completion in the Village could generate an estimated $300,000 in property taxes annually. If that amount were "captured" the City estimates it could justify issuing a $3 million bond.

By capturing increases on multiple commercial properties within the allocation area, the potential exists for a bond issue that would be large enough to fund multiple Midtown catalyst projects.

Locations for catalyst projects have been identified in neighborhood planning processes including Envision Broad Ripple, Envision College Avenue, Mid-North Quality of Life plan, Envision Maple Road/38th Street plan and Midtown 2010-2040 Master Plan and Implementation Strategy.

A unique aspect to the North Midtown TIF compared to other city TIFs is the establishment of the Midtown Economic Council (MEC). Comprising representatives of all affected Midtown neighborhoods, the volunteer MEC will review proposals and make recommendations to the Metropolitan Development Commission (MDC) regarding projects to be funded within the Midtown TIF.

The MEC should help ensure that the developments are in alignment with the numerous neighborhood plans as well as with the Midtown TIF's economic development plan.

As an essential prelude to the creation of the Midtown TIF, the City of Indianapolis Department of Metropolitan Development planning staff crafted the plan for in September 2011.

"The purpose of this project is to provide the basic tools for reinvestment," the document states.

Plan objectives include providing better neighborhood services and tools for stimulating private investment, job protection and job creation; recycling of underutilized public property; and upgrading infrastructure.

After the Plan's adoption by the MDC in July 2012, the legislative effort to establish the TIF began in earnest. Democratic councillors John Barth, Monroe Gray and Steve Talley partnered with Republican Will Gooden to introduce Proposal 291 in September.

The past five months have been an intensive period of public hearings and outreach.

Perhaps the most controversial aspect of the proposal was the inclusion of the mixed-use parking structure in the allocation area. During the many public hearings, attempts to amend Proposal 291 to exclude the site were unsuccessful.

The proposal now heads to the MDC for adoption at a final public hearing that could occur as early as March 6, 2013.

The North Midtown Economic Development Plan can be downloaded from DMD's site at: /www.indy.gov/eGov/City/DMD/Documents/Econ/North_Midtown_01_RedevelopmentPlan-Final02-complete-sm.pdf

Many supporting documents about the Midtown TIF are available under the Policy and Planning tabs at the Midtown Indianapolis Inc., website: midtownindy.org

Healy is a director of the Broad Ripple Village Association and president of its 501(c)(3) fund-raising arm, the Broad Ripple Alliance for Progress.

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