(Bright, IN) – The Dearborn County Redevelopment Commission (DCRC) is proposing a tax increment finance (TIF) district to create a new funding mechanism to ensure a portion of property tax dollars remain in Bright to fund infrastructure deficiency solutions and placemaking improvements at zero tax increase to property owners.
TIF is a commonly used local government revenue tool which captures a portion of property taxes to fund infrastructure projects, public amenities, public safety, and workforce development programs. In Indiana, redevelopment commissions are granted the power to create TIF districts to remove barriers to identified goals aligned with the local government’s comprehensive plan.
In 2022, the Dearborn County Board of Commissioners received a 1.0-acre piece of property on Professional Park Drive in Bright at no cost as part of the sale of the former Dearborn County Hospital. Seeking to return the property to the tax rolls and reduce taxpayer expense for maintaining the property, the Board of Commissioners deeded the property in 2023 to DCRC, a body of the county government. Upon taking ownership, DCRC began to recognize the site and nearby areas in the heart of the Bright commercial district as beginning to fall into disrepair due to lingering deficiencies in unmaintained private roads and stormwater drainage. Recognizing the hardship these issues were having on property owners, DCRC hired an engineering firm which analyzed the matter, recommended possible solutions, and estimated project costs at roughly $217,000.
The TIF has been proposed by DCRC as a tool to create a stream of revenue to further engineer and address the infrastructure deficiencies which may otherwise not be solved. The revenues would come from property taxes paid on any increased assessments that may occur after the creation of the TIF district within the district boundaries, which generally targets commercial parcels along Stateline Road from Bright Meadows Park to near Salt Fork Road, as well as parcels along Jamison Road from Professional Park Drive to just past Sonoma Lane.
Beyond the infrastructure needs, DCRC believes the proposed Bright TIF could fund placemaking projects to improve the community’s aesthetics such as streetscaping, sidewalks, public gathering spaces, park improvements, or other amenities supported by the community. Additionally, the TIF could provide support for retention or expansion of small businesses which fit and compliment community needs and existing neighborhoods.
DCRC is helping the public to understand the goals and mechanics of the proposed TIF district with the following Frequently Asked Questions. Additional questions on the Bright TIF proposal may be directed to Dearborn County Redevelopment Commission President Jim Deaton, [email protected], or legal counsel Anthony Smart, [email protected].
What is Tax Increment Finance (TIF)?
In Indiana, TIF is a local government revenue tool for purposes of funding economic and community development projects.
How does TIF work?
Taxes levied against increases in property tax assessments on commercial or industrial property (the increment) after a designated date (usually January 1) are redirected from the property’s overlapping taxing units and instead directed to a TIF fund managed by a redevelopment commission.
An example diagram of these TIF mechanics can be found in the Bright TIF public hearing slide presentation available at https://www.dearborncounty.org/department/index.php?structureid=111.
Why is DCRC considering a TIF district in Bright?
To create a revenue stream for DCRC to enhance the quality of life and place in the Bright State Line Road commercial district through infrastructure and placemaking improvements. Where is the proposed TIF district? How big is it?
A map of the proposed TIF area will be displayed at the meeting and is shared online at https://www.dearborncounty.org/department/index.php?structureid=111. The TIF district includes a total of 120 property parcels primarily along the State Line Road corridor from and including Bright Meadows Park at the north end, to the edge of but not including Gibson Cemetery on the south end. It also includes parcels in the area of Professional Park Drive and Business Center Drive, and some east along Jamison Road around George’s Pharmacy and Vitor’s Bistro. The proposed TIF area covers approximately 114 acres.
What is DCRC’s role with the proposed TIF?
Under Indiana statute, redevelopment commissions are responsible for investigating needs for redevelopment, and if there is a need, forming and managing TIF districts.
How long will the Bright TIF be in place?
The declaratory resolution for the proposed Bright TIF states that the TIF would be in place for 25 years, the maximum length allowed under Indiana law.
What types of projects and activities will the TIF fund?
Generally, TIF revenues can be used by redevelopment commissions for a wide variety of projects including infrastructure, property acquisition, public safety, public amenities, and incentives.
For purposes of the proposed Bright TIF, the DCRC expects to perform projects around Bright-focused planning, infrastructure, public amenities such as upgrading existing roads, addressing drainage problems, improved streetscaping, and improving Bright’s walkability.
What is the “but for…” argument for this TIF district?
Indiana statute requires each TIF to be justified: “But for the TIF, this project or investment would not take place.” But for this TIF district, currently existing infrastructure, safety issues, and placemaking improvements in Bright – such as unmaintained streets and problem drainage – could not be addressed by DCRC. Professional Park Drive and Business Center Drive and their associated stormwater infrastructure are privately maintained infrastructure which local businesses and residents rely on, but have not been maintained since constructed more than 30 years ago.
Will this be used to revive the Bright I-74 study from a few years back?
DCRC feels the Bright community made its feelings on the Bright 74 idea very clear and does not anticipate constructing new roads as a part of this TIF. This would be difficult to do within the proposed TIF area anyway, as it is already largely developed. DCRC does hope to make upgrades to existing roadways within the TIF area with the TIF funds.
Will there be additional public input on projects in the proposed Bright TIF?
Yes. DCRC has drafted a Request for Proposals for professional planning services to evaluate additional needs and desires of the Bright TIF area and larger community. If the Bright TIF is established this year, this planning exercise could be funded by DCRC and occur as soon as 2025. DCRC wishes to perform this planning collaboratively with various citizens, businesses, organizations, utilities, and elected officials. The planning exercise will be as much an opportunity for local citizens to discuss what they DON’T want in Bright’s future, as much as what they DO want. This plan would guide expenditure of TIF funds and other investments and decision making in Bright for the next few decades.
Won’t the TIF lead to more growth in Bright?
Commercial growth has occurred in Bright without the TIF district for some time already. Even without this proposed TIF district, it is probable that commercial business interest and investment in the Bright area continues. The TIF will give DCRC the ability to keep taxes paid by any new commercial development in Bright to address infrastructure problems and avoid exacerbating any old problems and creating any new problems.
How does this TIF preserve rural land?
DCRC does not make decisions on zoning and land use, which are in the purview of the Dearborn County Plan Commission. DCRC does recognize that encouraging new development in the already developed areas of the Bright Stateline Road commercial district – where development has and is likely to continue occurring regardless of a TIF – should reduce market need and development pressure to develop land outside of the Bright commercial district.
Will this add traffic in Bright?
Traffic growth in Bright has already occurred and may continue to occur with or without the TIF district. If supported in Bright community planning, new public amenities such as sidewalks will help reduce traffic by taking vehicles off the road, make the community walkable, connect communities, and help relieve parking issues at Bright Meadows Park and local businesses by making them more accessible to pedestrians and cyclists.
How much revenue does DCRC expect the proposed Bright TIF to generate?
Indiana law requires redevelopment commissions to have a tax impact analysis performed and shared with the overlapping taxing units before a TIF district is established or amended. In the tax impact analysis for the proposed Bright TIF, professional accounting firm Baker Tilly projects DCRC’s revenue of this TIF to total $48,440 annually at the start. The annual amount of TIF revenues could grow as new development within the TIF district boundary may occur. This funding must be used for projects benefiting the Bright TIF district. The tax impact analysis for the Bright TIF is available for review at https://www.dearborncounty.org/department/index.php?structureid=111.
Who will be financially impacted through property taxes by the proposed TIF district?
Only the overlapping taxing units whose levies are within the proposed TIF area will be financially impacted. These other taxing units include Dearborn County Government’s general fund, Harrison Township, Sunman-Dearborn Community School Corporation, Lawrenceburg Public Library District, and Dearborn County Solid Waste District. These taxing units will not receive the increment property tax revenues for the 25-year life of the TIF, but they will continue to receive revenues from all the existing assessed value in place today.
Does TIF harm schools?
No, the impact is very minimal, especially in the case of the proposed Bright TIF.
Prior to 2009, Indiana school corporations’ revenues were largely through local property taxes. Indiana’s school funding formula was changed in 2009 to shift school general fund revenues – such as teacher salaries – toward school enrollment through the state instead of local property taxes. Local property taxes do fund a school corporation’s rate limited Capital Projects Fund for building projects.
Baker Tilly’s projection on impact to taxing units estimated a $0 (zero) impact on Sunman-Dearborn Community Schools.
Additionally, DCRC believes funding quality of life projects in Bright creates a net benefit for our local schools, residents, businesses, and public service providers.
Why is there a budget of $2.85 million for projects in the proposed Bright TIF Economic Development Plan?
To be clear, this is not a $2.85 million tax increase – in fact, it is no tax increase at all. Indiana law requires redevelopment commissions in their TIF plan to identify an estimated cost of completing proposed projects in the TIF. The $2.85 million budget identified in the proposed Bright TIF plan was a number based on expected annual TIF revenues and potential increases in annual TIF revenue through any new developments which may occur in the TIF area. DCRC is not obligated to spend $2.85 million on TIF projects.
Will the proposed TIF harm local property values?
DCRC expects the projects funded by the proposed TIF will only improve property values. In fact, DCRC has a vested interest in ensuring property values improve as TIF is only funded by the incremental increase in tax assessments on commercial and industrial properties.
Isn’t TIF only for industrial or commercial areas?
No. TIF districts can be established in any area where a need for redevelopment can be demonstrated. Each TIF district has unique and varying goals suitable for its area.
For example, DCRC has an existing TIF district in West Harrison along Harrison-Brookville Road at I-74 where the goal is to attract new industry to provide for new employment opportunities for our citizens, increase local wages, and diversify the county’s tax base.
Another example is the TIF district in downtown Lawrenceburg. This TIF district’s goals are community development activity such as housing, placemaking, and small business support.
DCRC’s goals for the proposed Bright TIF are more akin to downtown Lawrenceburg in its placemaking and infrastructure goals in the downtown Bright area.
Has the West Harrison TIF been successful?
Yes. Since the West Harrison TIF district was established by DCRC in 2006, it has created nearly $29 million in new assessed value (tax base) for Dearborn County. This new assessed value has reduced the tax burden on other taxpayers. Additionally, it has created more than 150 jobs all with wages above the county’s average private sector wage. The West Harrison TIF is still growing today with proposed projects in the pipeline.
Is my property impacted by the proposed TIF?
The only properties directly impacted by the proposed TIF are those commercial properties within the TIF area – see the proposed TIF area map at https://www.dearborncounty.org/department/index.php?structureid=111.
What if I don’t want my property to be included in the TIF?
If you don’t want your property in the TIF, the redevelopment commission would need to agree to amend the parcel list and map.
Will my taxes go up (or down) as a result of the TIF?
When used appropriately, TIF does not raise taxes for taxpayers and does not reduce operating revenue for either the enacting or overlapping governments. This has been documented in a 2016 study by the Purdue Center for Regional Development at https://pcrd.purdue.edu/ruralindianastats/downloads/The-Use-of-Tax-Increment-Finance.pdf.
Will the TIF tax revenues be used in other areas of Dearborn County?
No. Increment tax revenues received by DCRC through a Bright TIF must be used on projects in or serving the Bright TIF district. The proposed TIF will ensure that the increment Bright tax dollars from commercial development in the TIF district will be reinvested in Bright and not spent on projects in other areas of the county.
Will the proposed TIF impact the way I am able to use my property or create new restrictions on my property?
No. Whether a property is in or outside of a TIF district, the TIF designation does not impact zoning designations, existing property land use classifications, or changes in land uses.
Could DCRC purchase property in the proposed TIF?
Yes, redevelopment commissions are able to purchase property from willing property owners in the TIF district, or outside the TIF district if the commission can illustrate a benefit for the TIF district. Property acquisition could be necessary in order to enable infrastructure projects through easements or right-of-way.
Can DCRC force property owners to sell or use eminent domain to acquire property in the TIF?
No. Indiana law does not allow redevelopment commissions to exercise eminent domain. Only a Board of County Commissioners, City Council, Town Council, or the State of Indiana have eminent domain authority.
What portion of my property taxes will be collected through the TIF?
If your property is not included in the TIF district, then none.
If your property is in the TIF district, then only real property taxes from the new assessed value on commercial or industrial properties after January 1, 2024 will be directed to DCRC’s new Bright TIF fund. All taxes from existing assessed value will be unchanged in funding the overlapping taxing units such as school corporation, library, township, and the county general fund.
How will other overlapping taxing units be impacted by the proposed Bright TIF?
Based on Baker Tilly’s tax impact analysis of the proposed Bright TIF:
· Dearborn County (general fund and cumulative capital development fund): $0
· Harrison Township: $0
· Harrison Township Fire and EMS: $0
· Sunman-Dearborn School Corporation: $0
· Lawrenceburg Public Library District: $0
· Dearborn County Solid Waste Management District: $0
The Baker Tilly tax impact analysis for the taxing units can be found at https://www.dearborncounty.org/department/index.php?structureid=111.
Will the TIF improve or harm the quality of life in Bright?
The Dearborn County Redevelopment Commission only wishes to improve the quality of life in Bright and believes that addressing infrastructure issues, preventing blight, and investing in placemaking amenities such as sidewalks, parks, and aesthetics will accomplish that goal.
Has the TIF district been established prior to informing and hearing from the public?
No. In following the statutorily required TIF process, DCRC did pass an initial declaratory resolution in July in public meeting. This allowed DCRC to discuss the proposed TIF and receive approvals from the Dearborn County Plan Commission and Dearborn County Board of Commissioners in public meetings determining that the activities would align with the County’s comprehensive plan. The TIF will not be finalized until DCRC votes on a confirmatory resolution in public meeting.
Additionally, statute requires DCRC to hold a public hearing, which took place as part of DCRC’s regular monthly meeting on November 12 at 9:10 a.m. at the Dearborn County Government Center. DCRC wished to go above this requirement and allow others unavailable for the morning meeting to attend by holding an additional unrequired public community meeting on November 12 at 7:00 p.m. at Bright Elementary School.
I only heard about the proposed TIF on social media. Does that mean DCRC is attempting to hide this from the public?
No. In fact, DCRC caused the notice about the public hearing and community meeting on November 12 to be provided to local media outlets, which then re-published the notice. The local media stories were then read and shared by citizens on social media. DCRC was glad to see the meeting notice which DCRC originated become widely distributed.
Why is DCRC selling the Professional Park Drive site?
In 2022, the site was given to the Dearborn County Board of Commissioners for $0 as part of the sale of the former Dearborn County Hospital. The Board of Commissioners deeded the property to DCRC in 2023 with a charge to return the property back to the tax roll, as government owned property does not pay taxes and requires taxpayer funds to pay for maintenance such as mowing.
Why does DCRC wish to see townhomes developed on the 1.0-acre property on Professional Park Drive?
The redevelopment commission was charged by the Dearborn County Board of Commissioners with returning the 1.0-acre property to private ownership so it would begin recontributing to the county’s tax base instead of requiring tax dollars to mow and maintain the property.
Generally, housing has continually been identified as a need by citizens and stakeholders across Dearborn County. The location of the 1.0-acre site is on the edge of a commercial zoned area and a Single Family Residential zoned area. Because the 1.0-acre property was previously zoned for commercial use, it could have been developed into more intense uses such as a bar and restaurant, retail, car wash, or offices. In consideration of the bordering residential neighborhood, DCRC wished to follow planning and zoning best practices by creating a suitable buffer which a small row of apartments creates.
This past July, the Dearborn County Plan Commission and Board of Commissioners approved a rezoning of the site from Commercial Business to R-2 Residential to accommodate townhomes.
Will the proposed townhomes be Section 8 housing?
No. The proposed apartments are to be market rate rental housing. Rents will not be subsidized. This will not be “section 8” housing.
There was incorrect information published on one of the Bright community Facebook pages in Summer 2024 expressing concern that the apartments would be “tax exempt”. The property is only noted as “tax exempt” on the Dearborn County Beacon GIS Online Map Tool because the property is owned by a local government body. Nearly all property owned by a local government, non-profit organization, or religious organization across Indiana and many states is “tax exempt” from paying property taxes. The current “tax exempt” status of the property has nothing to do with rental rates, the quality of the development, or its tenants. The “tax exempt” status would be removed from the property if and when it returns to private ownership, unless it is a non-profit or religious organization.
(Dearborn County Redevelopment Commission press release)
