By TESA CULLI
tesa.culli@register-news.com
MT. VERNON —
The Tax Increment Finance District Joint Review Board approved redevelopment plans for two proposed TIF districts, but not before Mt. Vernon Township High School proposed asking the city to either make it whole or enter an agreement to receive unobligated TIF funds.
“There is potential for significant increases in (equalized assessed valuation) in the tax increment districts,” MVTHS Superintendent Dr. Michael Smith said. “We would like to explore the possibility for an intergovernmental agreement ... We are certain that by the criteria we are in support of the TIF and it qualifies ... but would like the city to consider, based on the speed of growth and the speed of dollars generated in excess of $400,000, to consider redistribution of additional funds.”
City Manager Ron Neibert said he would present Smith’s request to the council, adding the TIF statute allows for such agreements — but there are drawbacks.
“It only works if annually the city declares money in the TIF fund as excess, in which case we have to give the funds on a pro-rata basis to all taxing districts,” Neibert explained. “In addition ... your state aid formula would be affected.”
Neibert said if a portion of the TIF equalized assessed valuation is diverted, the state aid formula would continue to increase for the high school. However, if the TIF funds were to go to the high school, a reduction in the state aid formula would occur — as much as more than 70 cents for each dollar received.
The city is working to implement the two TIF districts — the West TIF area, roughly located in the area south of Wal-Mart up to Sparrow Lane, then near Ambassador, with an east boundary of Interstate 57; and the East TIF, roughly located with a northern border near the Drury Inn, down Mateer Drive, and including the western side of South 42nd Street and continuing south toward the new interchange on Veterans Memorial Drive.
Two TIF districts are being proposed at the same time, meaning two Joint Review Boards met Thursday afternoon. The Joint Review Board is made up of representatives from certain taxing districts within the proposed TIF areas, and only four members of the respective eight- and 11-member boards were present for the meeting — Neibert, representing the city; Tyler Brown, representing District 80; Smith, representing MVTHS; and Doug Hoffman, an appointed representative of the general public.
The next step in the process will be two public hearings on the TIF districts on Sept. 20 at 6:30 and 6:45 p.m.
