Jasper Common Council approves Northridge Estates TIF, discusses communication improvements
Jasper’s Common Council green-lights development agreement and explores new ways to keep residents informed
The Jasper Common Council approved a conditional project expenditure agreement for the Northridge Estates project at its November 20, 2024, meeting.
Mayor Dean Vonderheide presided over the meeting, which saw all council members in attendance.
The council passed Ordinance 2024-18, authorizing the city to enter into a conditional project expenditure agreement for the Northridge Estates project. The ordinance also grants proceeds to Kerstiens Development and Kerstein’s Home and Design Inc.
Councilwoman Nancy Eckerle noted that at a previous meeting, “a motion was carried 7-0 to reflect a 10-year sunset phase” for the Tax Increment Financing (TIF) district associated with the project.
However, city officials determined that changing the TIF lifespan would require starting the process over with the Redevelopment Commission.
“After further review and analysis, we determined that in order to change the life of the TIF through this process, we would need to start back at the Redevelopment Commission and go through the process and change the previous resolutions that had to be passed,” said City Attorney Renee Kabrick after the ordinance was introduced for final approval.
The ordinance would create the city’s first residential tax increment finance district to support the Northridge Estates project northwest of Jasper Elementary School. Under the proposed plan, Kerstiens will construct 28 villa-style homes and 127 single-family homes on 80 acres of land over multiple phases. Single-family homes are estimated to start at $250,000, and villas start at $225,000-$230,000, with the TIF reducing the cost of the infrastructure investment Kerstiens is making to support the development.
Kerstiens estimates that installing utilities, sidewalks, storm sewers, curbs and streets to the new development will cost $5,127,893 (barring any material price increases). If the TIF passes, the developer will recoup about $1.1 million, lowering the lot prices by about $6,500.
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The ordinance maintains the original 20-year TIF lifespan, with the option to sunset it earlier if the debt is paid off sooner.
“After the debt’s paid, you can sunset it. So 10 years the debt’s paid, it can be sunsetted and it goes away,” explained Councilman Kevin Manley.
Councilwoman Eckerle said they could amend the language fairly quickly if they were to call special meetings in December. Kabrick told her it would take at least two redevelopment commission meetings and two council meetings to complete the process before January.
Councilman Paul Lorey pointed out that the city could be limiting itself from collecting property taxes from the development that could support the increased population. Funds available after the payout to Kerstiens Development could be used to pay for a new fire truck or improved infrastructure/roads in the area to support the development.
Councilman Chad Lueken said he didn’t think any future council would sunset the TIF earlier than the allotted 20-year lifespan.
“If we sunsetted it in 2029, we would forego, as a city, $426,000 of revenue generated from the TIF,” Lueken said, regarding the proposed residential TIF. “We would forego that and we would accept instead around $10,000 of revenue. And no city council is going to do that. I just can’t imagine a scenario where it makes any sense to do that.”
Lueken, who had previously opposed the ordinance, said he had come full circle on it and supported it based on its minimal impact on property taxes in the city and the other taxing units (Greater Jasper Consolidated Schools, the township, county and Huntingburg Airport Authority).
The ordinance passed in a 5 to 2 vote, with Councilmembers Vince Helming and Nancy Eckerle casting the dissenting votes.
The council also unanimously approved the city’s application for the Indiana Finance Authority’s Residential Infrastructure Program. This competitive program offers low-interest funding for infrastructure for development like Northridge Estates.
City Attorney Kabrick explained that the city would apply for a special bond that could save the developer up to five percent interest compared to traditional financing. The developer, Kerstiens, must have a letter of credit from another lender to guarantee repayment to participate in the program. It is a competitive process and requires support from the city to proceed.
In other business, the council discussed potential changes to its ordinance reading process. Kabrick suggested moving from a three-reading process to a two-reading process, which aligns with current state law requirements.
“Now the law requires a two reading process. It does not require three readings,” Favourite said. She added that this change would not prevent the council from tabling an ordinance for further review if needed.
The council voted to have Kabrick draft an ordinance outlining the two-reading process for consideration at a future meeting.
In connection with the two-reading process, the council also discussed improving the timeline for agenda item submissions, with suggestions to move the deadline from the Friday before the meeting to 10 days before the meeting.
“Getting Information into us so that we can get everything prepared and out to you is is always the difficult,” said Kabric.
Clerk-Treasurer Knies mentioned ideas such as including a council member in pre-council meetings or creating a working document accessible to council members to give them more heads up on agenda items.
At the end of the meeting, Councilwoman Eckerle announced progress on a new communication system for the city. The Board of Public Works has approved implementing a tool called GoGov, which will function as a smartphone app to alert residents about city events and news.
Mayor Dean Vonderheide emphasized the importance of public participation for the new communication tool to be effective. “It’s only as good as the number of people that sign up for it to get the notifications. So there will be a campaign,” he said.
The Council also took the following actions:
- Ordinance 2024-21 passed, updating truck routes and load limits for Jasper’s public streets.
- Resolution 2024-22 passed, authorizing funds transfer for the Community Crossings project to cover change order costs of $5,321.23 for milling and paving costs.
- Resolution No. 2024-21 passed, authorizing the mayor to work with the developer on the Regional Wellness Center to create a scope of the project.
- Approved first reading of a public utility drainage easement for the Hunters Run Estates. The vacation is necessary to accommodate a residential addition while maintaining the required infrastructure. The council approved the first reading of the ordinance to vacate the easement, with the understanding that a new easement will be established to ensure continued utility access.
- The Clerk-Treasurer presented the Redevelopment Commission’s spending plan for 2025. The plan includes obligations of $1.1 million for the pool project bond (about $570,000), the River Centre (about $500,000), and University Heights apartment development (about $40,000); professional expenses (about $100,000), and funding for the Heart of Jasper facade grant program ($25,000). While no council action is required, the presentation ensures transparency in the Redevelopment Commission’s financial planning. “This is merely a plan and it can be amended anytime next year through the same process,” Knies told the council.
