Jasper Redevelopment Commission approves Horne Property TIF allocation area; Hears request from school corporation

The Jasper Redevelopment Commission approved a confirmatory resolution establishing the Horne Properties north of Home Depot as a separate allocation area within the Central Tax Increment Financing (TIF) District during its March meeting.

The resolution created a distinct allocation area for two parcels totalling about 90 acres owned by Horne Development Group while keeping them within the Central Area Economic Development District. This structure provides maximum flexibility for future development projects, according to City Attorney Renee Kabrick.

The commission moved forward with the TIF designation despite the original developer stepping back from the project. The process to create the additional TIF area began as the city sought options to fund a new street connecting the property to Mill Street to support a potential purchase of the property and future development by a local developer. The developer was never named in public conversations.

Commission member Councilman Phil Mundy questioned whether to proceed, given that the potential developer may be backing out of the deal, and any future purchaser’s intentions are unknown.

“Should we be going forward on it if we don’t know who the purchaser is and they may or may not need it?” Mundy asked.

Kabrick explained that establishing the TIF area increases the property’s marketability by publicly signaling the availability of incentives. She noted the area has been identified as needing development and has remained undeveloped since 1998.

“By going forward and completing this process, it’s there and it’s available,” Kabrick said. “How we choose to use it, if we choose to use it, is a future decision.”

Commission President Andrew Seger agreed.

“I think it is an attractive property. I think it’s going to get developed,” he said. “My understanding of this is like any incentive, it’s going to increase the attractiveness of the property.”

The recommendation to create a separate allocation area came from municipal financial advisors at Baker Tilly and outside counsel after the Jasper Plan Commission and Common Council had already approved adding the properties to the Central area. The advisors suggested the separation would provide better flexibility, given the existing debt in the Central allocation area.

The Central area already has debt established and supported by its allocation area from the swimming pool project. Creating a separate allocation area for the Horn Properties means they would not be affected by the existing debt timeline.

“The Horne Properties Allocation area would not be affected or impacted by that existing debt, that existing timeline,” Kabrick said.

Commission member Laura Grammer asked about the implications of separate allocation areas. Kabrick explained that funds would be accounted for separately, and each area would have its own lifecycle once debt is established.

The separate allocation area would operate on a 25-year timeline that would begin when debt is issued against it, similar to other TIF areas in the city.

Mundy expressed comfort with the decision after understanding the flexibility it provides. He noted that if nothing happens with the property, the TIF designation causes no harm but positions the area for future development.

“To me, what this is doing is bringing to light and I think it’s an attractive area,” Mundy said. “But I think we’re saying we’d like to see that area get developed.”

The properties are also connected to a potential road project identified as one of the top 10 priorities in the city’s transportation plan, though no timeline has been established. Kabrick said road design would likely come after, or run concurrently with, development plans.

Also in the meeting:

The commission heard a funding request from Greater Jasper Consolidated Schools Superintendent Dr. Tracy Lorey for $133,800 to purchase Chromebooks for first and third-grade students. The city has maintained it would consider requests from the corporation for specific projects to be funded by the TIF dollars captured that would otherwise be going to the school corporation.

Lorey explained that the request supports educational technology investment and workforce readiness. The district-managed devices would ensure equal access to learning tools and help students develop digital skills early.

“Our students begin building responsible tech habits and digital skills early,” Dr. Lorey said. “Those skills are carried through into advanced coursework, career pathways and eventually Jasper’s workforce and business community.”

The school district spends approximately $1 million annually on technology in any way, shape or form, representing 14% to 15% of its operations budget, she said. The district operates on a four-year device replacement cycle, typically spending around $300,000 per year on student devices through lease programs.

Commission members expressed support for the school’s request, with Mundy noting that schools are crucial for economic development and community growth.

“I think schools are a huge piece of that,” Mundy added. “And I look at a lot of your students as our future workforce.”

The commission asked Dr. Lorey to outline the different funds the school has established for various aspects of its operations. Established by the state, Indiana schools have four main funds; education, debt service, operations and rainy day fund.

The education fund is supported by the amount allocated per student enrolled in the corporation and is funded by state sales and income taxes. Those funds are used to support the education of students with the largest expenditure being for salary, wages and benefits of the educational staff.

Debt service and operations are funded by local property taxes. Debt service covers the bonds the corporation has issued. For example, the corporation is undertaking several upgrades to its facilities and has bonded for those projects.

Operations funds everything from technology, building maintenance, transportation and more.

The rainy day fund receives annual transfers and is used to purchase buses, maintenance equipment, and to pay for technology leases (K-12 devices for students).

“We work very hard to try to utilize the funding mechanisms that we have for the purposes they are established,” Dr. Lorey said.

Seger stated he saw the school corporation as a huge piece of the economic development engine. “I think it is a big draw to this community,” he said. “I look at a lot of your students as our future workforce.”

He said that he felt the request merited consideration.

The commission took the school’s request under advisement pending staff investigation of available funds and a formal recommendation.