Jasper fast-tracking TIF addition process for northside properties

The Jasper Planning Commission unanimously approved a resolution acknowledging that the addition of two undeveloped parcels to the city’s Central Tax Increment Financing District fits in the city’s economic development plan.

The parcels, totaling about 90 acres and located north and east of Home Depot, are owned by Horne Development Group and have been for sale since 1998. A local developer has expressed interest in partnering with the city to acquire the land and pursue development opportunities. Although no project has been identified yet, city officials have said it would likely be a multi-use development with commercial and residential components.

“We have had a local developer who is interested in partnering with the city on bringing that into local hands so that it is marketed appropriately and we can hopefully spur the development upon it,” Josh Gunselman, Director of Community Development/Planning, told the commission Wednesday evening.

He explained the unidentified developer has indicated they would like to work with the city to identify its needs.

The developer’s current extension to negotiate with Horne Development Group expires on February 20th, 2026. As part of the negotiations, the developer has requested the city’s participation in creating a connection point between U.S. 231 and Mill Street in that area.

The proposed road project aligns with the city’s 2021 multimodal plan, which identified 18 road projects and scored seven as high priority. This particular road connection was among the high-priority projects.

“Of the 18 road projects, seven scored high priority, including this road,” Gunselman explained. “Of those seven high projects, two have been completed. Three are in some form of planning stage. One I’m going to say canceled because it’s kind of mitigated itself, and then that leaves this project.”

The 2021 plan identified the issue as “a lack of connectivity between retail uses along US 231 and Mill street, added to the traffic diversion of US 231.” The solution involves providing access to US 231 by extending an east-west connector, though that hasn’t been designed yet.

Adding the 90 acres to the Central TIF allows the city an avenue to pay for the addition of the road through revenue included in that TIF. If they created a separate TIF district for the acreage, it would not generate sufficient tax increment to support the road project. Early estimates put the cost at up to $3 million.

Currently, the two parcels generate only $2,800 in property taxes annually, according to county auditor records. In contrast, individual commercial developments in the area generate $200,000 to $300,000 in property taxes.

The resolution does not commit any existing funds or divert funds from current projects. Instead, it establishes the framework for potential future funding mechanisms, according to the city.

“I cannot reiterate enough, we are not asking you to commit any funds at this point, but every single project, regardless the size or scale, has a series of go no-go decision points that must be made,” Gunselman emphasized, adding that this was the process why they were seeking the TIF decision.

The project supports goals outlined in the city’s comprehensive plan, which identified citizen concerns about having to leave Jasper to shop and insufficient restaurant and grocery options. The plan also calls for promoting incentives to attract new businesses and preparing shovel-ready sites with adequate infrastructure.

Councilwoman Nancy Eckerle spoke to the commission, expressing concerns about continually extending the Central TIF District, noting it currently reaches as far north as 36th Street. She also questioned how far the district could legally be extended using city streets as connectors.

City Attorney Renee Kabrick explained that the process is legally permissible and has historically been referred to as a “barbell TIF,” in which city streets can connect areas that would benefit from being part of the same district.

The timeline for any actual development or road construction extends well into the future, potentially years away. The current request represents the first of many decision points that must receive approval before any construction can begin.

The Planning Commission’s role was to determine whether adding the parcels to the TIF district and amending the economic development plan align with the city’s comprehensive plan, and they unanimously concluded they do.

The resolution of a favorable recommendation clears the path for the Jasper Common Council to consider it at its upcoming meeting on February 18th, 2026. If approved there, it will return to the Redevelopment Commission in March for a public hearing and final approval.