Shelby County aids Shelbyville's downtown redevelopment project

Shelbyville currently has four TIF districts: Eastside; Fairland; Knauf; and Kroger.

The resolution approved by the County Commissioners assigns the county’s right-of-way area along the Interstate 74 corridor to the city’s Redevelopment Commission.

“This has to do with the TIF district along I-74,” said Commissioner Kevin Nigh (R - Center District). 

According to Resolution 2017-03, the area to be assigned to the city is the county’s right-of-way along I-74 from Exit 109 at Fairland Road to Exit 116 at East State Road 44, a distance of about 6.25 miles.

The three commissioners approved the resolution unanimously pending review by county attorney John C. DePrez IV.

Indiana Code 36-7-25-4, first enacted in 2009, allows one governmental unit to assign property to another unit in a contiguous area. 

According to the resolution approved by the commissioners, the purpose is “...allowing the City’s redevelopment commission to connect existing allocation areas in the City via the County Area...” to fund the downtown project.

Exhibit A of the resolution describes the downtown project which includes “realignment of SR 9 / Harrison Street through the Public Square and elimination of access from West Washington St.” 

The project also includes eliminating the central parking spaces from the Public Square, installing cobblestone paving and establishing a large lawn area in the Square, and “streetscape improvements on E/W Washington St. and N/S Harrison Streets to replace parking lost in the square,” among a number of other items.

Trent Meltzer, attorney for the city of Shelbyville and also director of the city’s Redevelopment Commission, said consolidating the TIFs allows the city more options when it comes to funding development projects.

“So you can spend in different places easier,” he said.

There is no downtown TIF, but as Meltzer explained, the TIF funds can be spent in “allocation areas” not necessarily in the TIF itself, and the city’s Riverfront Development District, established just last year, is an allocation area, Meltzer said.

However, the Riverfront District doesn’t include all of the Public Square, and by law, the district can’t be expanded to cover the entire downtown. 

But an allocation area can be expanded, Meltzer said.

“I assume it’ll be enlarged,” he said, referring to the downtown allocation area. 

Not all of the city’s TIF districts are money-makers, Meltzer said. Because of bond payments and other expenses, some TIFs cost the city more than they bring in.