Greenwood city officials are planning to amend tax increment financing districts, including edits involving property that is set for single-family home and apartment projects.
During last week’s city council meeting, officials discussed a resolution that would approve an order to amend the city’s Eastside Economic Development Plan and Eastside Economic Development Area, both of which were originally established in February 1997. The main goal of the plan and EDA is to provide the infrastructure necessary for the development of the area in a “manner and quality” proposed by the city’s comprehensive plan and Unified Development Ordinance, according to city documents.
The amendments to the plan are intended to enhance economic growth at the Main Street and County Line Road exits of Interstate 65 and the area adjacent to the two. The stated goals of the amendments are to provide support for new residential, multi-family and commercial development by enhancing infrastructure, city documents say.
EDAs capture tax dollars generated by property improvements. That means taxes on improvements to the property, such as newly built structures or redeveloped structures, go to the city’s redevelopment commission, or RDC, for projects within the district. However, the base property tax amount remains unchanged and continues to flow to entities that currently receive those tax dollars.
The city’s RDC uses funds generated by EDAs to complete projects or can issue TIF dollar-backed bonds to complete multi-million dollar projects. Examples of recent uses of TIF dollars are the Madison Avenue streetscape project, the Old City Park redevelopment, the Greenwood Fieldhouse and the future sports park at I-65 and Worthsville Road.
What’s being changed
Under the proposed amendments, the existing I-65 East Allocation Area would be eliminated and a new allocation area, dubbed the County Line Road and I-65 Allocation Area would be created, according to city documents.
The goal of this is to increase the remaining amortization, or reduction, period available for TIF revenue-backed bonds as allowed under Indiana law. The larger period would give officials more time to carry out the city’s objectives for TIF dollars by creating “more favorable conditions for financing infrastructure improvement projects” within the EDA, according to city documents.
The northward shift of the new allocation area would also fund road infrastructure near and along Combs and Five Points Roads, and site development on plots of land located near County Line Road and I-65, city documents say.
Two other allocation areas would also be added under the amendments: Combs Road/Pride One Allocation Area and the Emerson Pointe Allocation Area.
Other changes include removing several residential properties from the Central Expansion Allocation Area. Many single-family residential properties were included in the allocation area when it was created 25 years ago, however, there were few benefits from including them, as the area was already developed, officials say.
“They don’t have any benefit. They weren’t being captured, but it just reduces the number of parcels managed by that TIF and simplifies some of the administrative work,” Adam Stone, a financial consultant for Greenwood RDC, told the city council last week.
City officials say several infrastructure projects could be funded or financed under the proposed amendments. The changes could fund improvements along several east/west roads located between County Line Road and Main Street, along with Innovation Parkway, Combs Road, County Line Road and Five Points Road at a combined estimated cost of between $1.5 to $13.5 million. Improvements to Emerson Avenue could also be funded by the changes, city documents show.
Funds could also be used for a multi-use trail and new public green spaces and amenities, along with stormwater improvements.
The residential projects
Two allocations areas that would be amended as part of the changes are for residential projects.
The Combs Road (Pride One) Allocation Area is for a project known as Pride One, which would be located east of VM Innovations. This proposed development would consist of more than 200 new single-family homes that would all be centrally managed by one company.
Right now an apartment complex is planned to be built on this land by the Buckingham Companies, with part of the property being set aside for future single-family homes. This development is before the city’s Advisory Plan Commission as a rezoning petition Monday.
This property is currently not within any EDA, so the property will first need to be added to the EDA and then subsequently designated as an allocation area. The resolution would accomplish both, city documents show.
The Emerson Pointe Allocation Area is for a residential project on a 8.56-acre plot of land located along North Emerson Avenue south of Emerson Pointe Shopping Center. The land in question is currently being developed by The Garrett Companies for a 218-unit apartment complex dubbed The Hangar on Emerson. The complex will feature amenities such as a resort-style pool and spa, a fitness center and a yoga studio, and will have a street-level coffee shop, according to both the city and the developer.
The creation of the new allocation area will allow for the issuance of TIF bonds to support the development, documents say.
City officials say both the Pride One and Emerson Pointe projects would provide “affordable,” workforce housing options to the city. While both projects are ultimately market-rate rent projects, the increase in rental units is intended to help provide more housing, city documents say.
“Providing more capacity for workforce housing has a direct impact on the city’s broader economic development goals as the larger workforce pool will help current and future businesses meet hiring needs,” documents say.
City council president Mike Campbell, who sponsored the city council resolution along with council member David Hopper, did not return a request for comment regarding the placement of residential developments within a TIF district before deadline.
What’s next
The proposed amendments are currently three-quarters of the way through a four-step approval process.
First, the RDC adopted a resolution to amend the boundaries and the plan, and then the plan commission adopted an order saying that the amendments were consistent with the city’s comprehensive plan.
Next up, the city council is considering adopting a resolution approving the plan commission’s order. The resolution passed on first reading unanimously last Monday, with one member absent, and there is still one more city council meeting before it moves to the final step.
The final step consists of a public hearing on the amendments, which will be hosted by the RDC. Ten days prior to the hearing, a tax impact statement will be mailed to affected tax units and landowners within the new allocation areas, according to officials.
After the public hearing, the RDC will adopt a resolution confirming the changes and finalizing the amendments.
