Greater Clark schools gets piece of Jeffersonville TIF expansion

Ten percent of the annual tax revenue collected through the expanded part of the district will be handed over to Greater Clark County School Corp. — an entity that ordinarily would not see any money from increased property values within the district.

The city council asked the redevelopment commission to agree to share the revenue pool with the school corporation, before approving the expansion. The commission passed the agreement during a special meeting Monday, just a few hours before the council meeting.

"I think it's a fantastic agreement," Councilman Ed Zastawny said during Monday's meeting.

The expansion of the Inner City Road district encompasses areas throughout the city expected to boom in the coming years — both sides of Ind. 62 to the north of Ind. 265, the land surrounding the future heavy-haul road and a small portion encompassing the future Gateway property at 10th and Spring streets.

A study predicted that if the new portion of the district gets $150 million in development — which is likely to happen — $4.7 million in revenue will be generated every year during its 25-year life expectancy.

In that scenario, Greater Clark would get checks for $470,000 from the city annually.

"Ten percent, to me, is a good investment in the school system," Commission President Monty Snelling said during the commission meeting.

TIFs are the primary funding source for Indiana redevelopment commissions. Tax revenue generated from a TIF district is handed to redevelopment commissions to reinvest back into communities for infrastructure and other redevelopment projects, such as the 10th Street widening project.

However, TIF districts freeze property values and funnel any increased revenues solely to redevelopment commissions — not to the school district or other public entities like libraries.

"The schools are the ones that really hurt," Snelling said.

Also in the agreement with Greater Clark is a promise that the corporation won't use the former Clark County Auto Auction property, gifted to them by the owners, for a transportation compound. Instead, Greater Clark intends to develop the building into a professional development learning center.

Greater Clark hoped to purchase two properties owned by the auto auction, but only one north of 10th Street was gifted to them. Jerry White, Greater Clark representative for the redevelopment commission, said the auction owners will sell the south portion to a different buyer.

The use of the property wasn't part of Snelling's decision in passing the agreement.

"My objective was to help the school and help the students," he said.

The only council person to vote against the TIF district expansion was Nathan Samuel, who expressed concerns that the extra tax revenue would be drained from the general fund and affect the ability to fund essential services. The general fund covers budgets for police and fire, trash pickup and other governmental operations.

"I'm not going to support expanding our TIFs because I'm trying to look ahead and trying to see that we can afford to pay for increased services [because of growth]," he said.

City Attorney Les Merkley pointed out that without the expansion, in the scenario where the area gets a $150 million development, the general fund would only receive $18,000 annually — compared to the $4.7 million with a TIF.

The existing portion of the Inner City Road district sunsets in 11 years, meaning that the $350 million in tax revenue will be redistributed to local municipalities and entities again and no longer funneled to the redevelopment commission.

"I hope that will be a balancing factor in this expansion," Zastawny said.

Mayor Mike Moore told the council TIF investments are in part responsible for Jeffersonville's recent growth.

"You will not have the developments you're about to see without the TIFs," Moore said.