Jasper Council approves sweeping tax increment area

The Jasper Common Council approved the proposed tax increment finance district encompassing about a third of the city — 90 percent of its industrial base — Wednesday night.

If you haven’t been following along, a tax increment finance district is a special tool created originally in California — who has since abandoned it — that allows a specially created commission to capture taxes on incremental increases in the assessed value of properties in the district. At its best, TIF invigorates investment in an area that is declared blighted and that investment would not have likely occurred without the TIF. The investment in turn raises the assessed value of the property in the area. The difference between the new value and the base assessed value (value of the property established when the district is established) is then captured by the district for use by the special commission and can be allocated to assist in paying for bonds or other infrastructure development.

The district is established for a maximum of 25 years. At the end of the 25 years, the city could create a district over the area again, but a new assessed base value would have to be determined.

For the current proposal, the base assessed value of the area will be set to the assessed value established prior to March 2014.

Under Indiana code, the redevelopment commission is responsible for the funds. The clerk/treasurer is responsible for issuing checks as directed by the commission and is accountable to the State Board of Accounts for the proper use of those funds.

According to Ed Curtin, a consultant with CWC Latitudes LLC. and Richard Starkey (who was not present at the meeting last night), an attorney with Indianapolis-based firm Barnes & Thornburg, the redevelopment commission cannot issue bonds without council approval, nor can they deviate from the approved comprehensive plan for the city. They are able to make payments and purchase or lease property, though.

The city has identified an estimated $18 million in projects that the TIF funds collected could be allocated towards. Those include:

• The redevelopment of Jasper Cabinet.
• The redevelopment of Hoosier Desk.
• The Parklands.
• Issues identified with Patoka River and dam.
• Further incorporation of the Arts Department into downtown.
• The development of the JOFCO building into apartments.
• The Aquatic Center (pool upgrade).
• Items indicated in the downtown master plan including the River Road, Main Street promenade, Courthouse Square, and other developments in the plan.
• The expansion of the Riverwalk to connect to St. Charles.
• A downtown parking facility.
• Fiber build out for high-speed internet for the city departments.
• Extensions of North Mill Street and 46th Street.

Councilman Kevin Manley voiced his concerns regarding the size of the district, how the money generated can be used, and the fact that a third of Jasper will have to be declared as blighted — a requirement for the TIF to be established.

“The money can be spent on darn near everything,” Manley said. “And the proposal being put before us today, a third of our city would be part of a TIF district. A third of our city would be declared blighted. A third of our city is not blighted. There is one building in the area that is blighted, the Jasper Cabinet building.”

Councilman Randy Buchta echoed Manley’s sentiments and added “I have had representatives from the county, airport authority, and the school call me with those same concerns,” he said.

He acknowledged that Huntingburg, the only city to use TIF in the county, has been successful in implementing it. “I am not against TIF. They (Huntingburg) didn’t go and put 90 percent of their industry in a TIF district,” Buchta said. “I just can’t see jumping in with both feet putting 90 percent of your industry in a TIF distict not knowing what’s going to happen.”

Buchta said he could see it being used for a blighted area or an empty field.

Jasper Mayor Terry Seitz, a proponent for the city adopting TIF since before he took office, pointed out that the large area being designated in the district would be needed to raise the funds for the projects annotated in the city’s plan.

Public comments during the council meeting Thursday night were regulated to those who had requested to comment prior to the meeting. The mayor announced the four individuals ahead of comments, each supporting the new district.

The council’s decision was not subject to a public hearing, which would have allowed public comments, but a public hearing is scheduled to occur just prior to the redevelopment commission approving the new district at 6 p.m. on January 6 at the Council Chamber at City Hall.

Despite county representatives and members of the public with concerns about the large district being present, a dissenting voice was not heard other than those from the Jasper council. But, in the end, the dissension was whittled down by the four who were allowed to speak in addition to the mayor and members of the redevelopment commission until the vote passed unanimously.

Speaking in support of implementing the district were Tell City mayor and the regional representative of the Indiana Association of Cities and Towns Bill Goffinet, Jasper Action Team member Rick Stradtner, Dubois Strong board chairman Alan Johnson and retired Kimball International president Jim Thyen.

Goffinet spoke about IACT’s support of TIF as a funding source for localities across the state — 80 out of 92 counties in Indiana have TIF districts including Dubois County with Huntingburg holding six.

Stradtner said that this is the next step that Jasper needs to take because, just like tax abatements have helped retain and allow businesses to grow in Jasper, TIF will do the same thing.

Johnson said that TIF allows the city to pre-fund important infrastructure like broadband access. Seitz agreed and said he wants Jasper to be able to offer broadband but the city cannot fund it with traditional means but can using TIF funds. Johnson acknowledged broadband access at VUJC has transformed the learning environment.

In a compelling argument for the establishment of the TIF district, retired president of Kimball International Jim Thyen advocated that the city needs to be thinking regionally. “We must continue to think and act regionally with our economic strategy,” he said. “Economic development today is talent driven. Real estate availability is still required but it is not the critical decision driver of companies as it has been in the past. People decide where to live and they bring their work with them. Businesses decide to locate, to invest and to expand where the talent exists”

Thyen pointed out that the area’s digital infrastructure in the region was a serious handicap in bringing talent to the area. “It is critical to Jasper and the wider, surrounding region,” he said. “TIF can be one program to reestablish what the region requires for continued economic viability.”

He compelled the council to release their personal issues and move forward with the proposal.

Following Thyen’s remarks, Manley again pointed out that he felt the area was too big and that many of his constituents had misgivings about creating the area and handing the money over to the commission.

“Right now, the state legislature is looking into putting additional controls on this because it has been abused across our state,” he said. “I feel that the area is way to big and needs to be in an area that is more appropriate to what the statute says.”

Councilman Earl Schmitt joined Buchta and Manley in reiterated they were not against TIF, but just the size of the proposed district in Jasper. Despite those misgivings though, neither had an answer when John Bell, president of the Jasper Redevelopment Commission, asked why the area should not be that big.

“You can’t just be at a stalemate if you don’t have a perfect solution, but if you are 90 percent sure with the way you should go, then that’s the way you should go,” John Bell said during his opening remarks to the council. “The redevelopment commission clearly wants to work with the city council. We are all in this together. We know we are all working for the betterment of Jasper.”

Councilman Ray Howard, who also sits on the redevelopment commission,explained that in the past the city officials have been able to work through difficult new ideas. He mentioned the establishment of the economic development commission (Dubois Strong) and the creation of the tax abatement ordinance that is now used across the county.

“How you play in the past, is how you will play in the future,” Howard said. “I looked at areas where we didn’t have a tool and we had difficulties, but people put their heads together and made it work. TIF is no different, if the past is an indicator, folks will come together to make this work.”

In approving the proposal, Buchta and Manley stated they changed their minds after they received assurances that the redevelopment commission would only act in conjunction with the council’s intentions.

Jim O’Neal, News Director WITZ AM/FM contributed to this report