LOWELL — The Interstate 65 interchange east of town resembles your average rural way station: a couple of truck stops, fast-food outlets, motels and a Lion's Den adult book store.
He wants to create a TIF, that is, a tax increment finance, district to redirect the property tax dollars generated by current and future retail businesses — now going to other government services — to borrow the money needed to build up this interchange.
"TIF districts are used to improve areas by introducing sewer and water utilities and help builds roads. I even put in provisions to build sound barriers, and we would work on (stormwater) drainage, too," he said of his TIF plan.
Planting a TIF in the midst of the farm fields of sparsely populated Eagle Creek Township goes against the grain. Many of Indiana's more than 600 TIF districts are in urban settings, said professor Larry DeBoer, a specialist in local government finance at Purdue University.
Lake's current 54 TIF districts are all within 16 of the county's cities and towns. They capture $66 million in property tax revenues that service $482 million in infrastructure construction debt.
Porter County has only 15 TIFs, all within: Chesterton, Burns Harbor, Hebron, Portage, the town of Porter and Valparaiso city limits. LaPorte has 11 TIFS within the city of LaPorte and Michigan City. Together, both counties raise $69 million to service $266 million in debt.
Illiana first spurred proposed TIF
Brown said he began researching his proposal more than two years ago when state officials were still actively pursuing creation of the Illiana Expressway, a 47-mile toll highway between I-65 and Interstate 55 in Will County, Illinois.
He envisioned a 5,000-acre TIF district stretching from Ind. 2 to what would be the Illiana's junction with I-65.
Opposition from environmental opponents and Illinois Gov. Bruce Rauner's freeze on large public works projects has idled the Illiana.
Nevertheless, Brown said he remains heartened by Indiana's $62 million decision to widen I-65 to three lanes from U.S. 30 south to Ind. 2.
"We figured the traffic volume would increase and, as a result, the business potential would increase as well," Brown said.
Town Councilman Edgar Corns, R-Ward 5, said interest in developing Lowell's I-65 corridor is haunted by regrets over what he considers a lost opportunity to land a major employer. Nothing came of that speculation. Amazon announced last year it would build a center near Monee in Illinois.
"We could have had an Amazon warehouse out there with 2,000 jobs, and the county blew it," Corns said, though he did not elaborate on exactly how the county scotched the deal.
Councilman Will Farrellbegg, D-Ward 3, said more development would mean more jobs for Lowell residents. "Creating a TIF district there would probably expedite this," he said.
Lowell eyes I-65 corridor for possible annexation
Lowell Town Councilman Chris Salatas, R-Ward 4, said developing the I-65 corridor would make it more suitable for future annexation by Lowell, something town officials discuss, but are reluctant to do unless there is enough tax revenue to justify the move.
"There is development that is going to start happening there, like the cold storage plant being planned," Salatas said. "If it's developed in a way a municipality would treat it, it only benefits the town and the people selling their property for development."
However, Corns said he would prefer Lowell annex the corridor and develop it rather than the county, so he cannot support the county's TIF district.
DeBoer stated in a recent presentation that poorly executed TIF districts cost the public unnecessary debt and reduce taxes that otherwise would go to neighboring communities. But "when used appropriately, tax increment financing may be a useful tool to promote economic development," he said.
Brown said new businesses could even pick up the cost of borrowing for infrastructure construction so taxpayers would only be liable if the businesses defaulted.
The county previously operated a TIF district along U.S. 30 between Mississippi and Clay streets. It constructed millions of dollars in sewer and water utilities, roads, sidewalks and other infrastructure improvements and attracted retail business before dissolving it in 2015.
DeBoer said state law requires new TIF district supporters to provide evidence that anticipated new development wouldn't happen "but for" the TIF district financing.
He said research indicates TIFs are more likely to increase property values than employment, and in some cases increased business within a TIF district is counterbalanced by decreased business outside it.
County Councilman Eldon Strong, a Republican who represents Lowell and rural south county, opposes the proposed county's TIF district for Lowell. "I do not believe we need to hurry economic development along, as it will develop on its own in a short period of time," he said.
Randy Palmateer, a county Redevelopment Commission member, countered that view, saying, "The last time we let development happen out on Ind. 2, we got a (Lion's Den) smut shop."
Brown said he has responded to criticism his TIF district would be too large, by reducing it to 1,100 acres, and will present its new contours June 21 to the county Plan Commission.