Jasper Redevelopment Commission approves first step to add 90-acre property to Central TIF district

The Redevelopment Commission unanimously approved the first step to add two parcels totaling approximately 90 acres to the central Tax Increment Financing district, potentially paving the way for a major mixed-use development north of Walmart and Home Depot.

The property, currently owned by Horne Properties of Tennessee, has remained largely undeveloped since 1998, with only the recent addition of Liberty Federal Credit Union and the shopping complex that houses Starbucks, Penn Station, and Suntan Station carved out for development.

“We now have a developer who would be interested in purchasing the property into local hands with the effort of working with the city and master planning that at a future time,” said Director of Community Development/Planning Josh Gunselman.

A critical component of any future development involves constructing an access road connecting the property to U.S. 231 or Mill Street. The road has been identified as a high-priority project since 2001 to address transportation issues and unlock the area’s development potential, according to City Attorney Renee Kabrick.

The road was also included in the city’s 2021 modal study as a spur connecting to Mill Street to the west.

He explained that there is no plan to develop the parcels, but the developer’s purchase agreement with Horne Properties has a Feb. 20, 2026, deadline. This has created urgency for the commission and the decision-making process to add the area to the TIF.

Commission member Phil Mundy said he had concerns about moving so quickly on the decisions that have to be made to add the property to the Central TIF.

Gunselman said the purchaser, a local company, has already received one extension on the purchase agreement and that the company wasn’t seeking any further commitment unless something developed.

“One of the unique situations here is we have developers come to us and said, ‘What does the city need? What does the city want?'” Gunselman told the commission. “And wants the city to be an active participant in planning out this eventual approximately 90-acre development.”

He explained that it was in the city’s best interest to be included in planning for any eventual development there.

“The developer is in no hurry to do anything at this point,” Gunselman said.

However, the TIF is an option to fund future road development that will serve those parcels.

Clerk/Treasurer Kiersten Knies said she supported the development of the property but stated that adding the properties to the TIF without a plan still has implications for city funding. Any increased property taxes would now be captured by the TIF district for redevelopment purposes.

“Adding these parcels means that any future tax increment, whether this developer does the project, another developer does the project, would be taxed for redevelopment purposes only and won’t flow to the general fund,” said Clerk/Treasurer Kiersten Knies.

Commission members Steve Lukemeyer and Laura Grammer also raised concerns about the impact on local schools, noting that TIF districts redirect property tax increments away from schools and other public services.

Lukemeyer is a member of the Greater Jasper Consolidated School Corporation Board of Trustees and is a non-voting member of the Jasper Redevelopment Commission.

Currently, schools receive approximately 55% of property tax revenue, which supports the corporation’s infrastructure needs. Properties within a TIF created by the city can contribute up to 15% to schools through a voluntary allocation.

“More than likely, there is going to be multi-use (sic) housing there, so that’s going to bring more students to school,” Lukemeyer said. “And without additional tax revenue.”

He asked that any multi-family housing included in the development be excluded from the TIF.

City Attorney Renee Kabrick said she could look into whether that could be considered in the resolution.

Kabrick also emphasized that the developer approached the city seeking a partnership rather than demanding specific incentives.

“The developer did not come to the city and say, you must build a TIF,” Kabrick said. “They said they need financial incentive. And so it’s on us to figure out what we have in our toolbox that could work for what their needs are.”

TIF is one of the city’s tools and could be used to support the construction of the road already identified as a need in the city’s infrastructure.

Street Commissioner Jeff Theising expressed support for the road project, citing traffic congestion issues in the area.

“That 36th street light is a bottleneck. It’s a problem,” Theising said. “I do think that this road is needed. Will somebody use that road to go to Walmart? No, not really. But I do think that this road will help whatever the future development is.”

Theising also said the street department’s budget couldn’t support the road’s construction. But, he also expects traffic on Mill Street to increase as the city expands and improves the section from 30th Street to 36th Street, beginning in 2028. Between 36th and 47th Streets, there are no access roads to Mill Street, and Theising said this needs to be remedied as traffic increases.

Commission President Andy Seger emphasized that the commission’s action on Tuesday is only a preliminary step, not a final commitment to fund infrastructure.

The city isn’t obligated to build the road until development occurs.

Also, the approval represents only the first of multiple required steps. The proposal must next go to the Plan Commission to confirm consistency with the city’s comprehensive plan, then to the Common Council for approval of the economic development plan amendment.

If those approvals are secured, Baker Tilly will conduct a tax impact study followed by a public hearing before the Redevelopment Commission makes a final decision through a confirmatory resolution.

“We’re initiating a first step in this process,” Seger said. “If we don’t initiate the process, it doesn’t even come before the council and so forth.”

Based on that, the commission agreed to the resolution.