ENGLEWOOD — With the impending development of a shopping center on the site occupied by Englewood Truck and development of Panera Bread and Starbucks on the Meek property, the city of Englewood voted to establish a Tax Increment Finance District (TIF) to pay for needed infrastructure improvements that will serve these new businesses.
These properties are not tax abated and a TIF is not a tax abatement. The property owners will pay property taxes just like any property owner. Funds from the Main Street TIF will fund needed infrastructure improvements including a water line extension critical to redevelopment of the Englewood Truck site as well as relocating fiber optics and streetlights and beautification enhancements to the Main Street corridor at Interstate 70.
The demolition of Englewood Truck was scheduled to begin within a few days of the Nov. 10 council meeting.
“The reason the state allows TIFs is for improvements adjacent to a property that is being improved, which includes traffic improvements, utility improvements and so forth,” said City Manager Eric Smith. “In negotiations with developers of the Englewood Truck site they claim that in order to make this work that they needed some utility improvements, so we agreed to install a water main which will also help out with the flows throughout the city.”
Smith said that other upgrades would require the relocation of some fiber optic lines and streetlights along with some traffic improvements.
“In addition to that, we want to upgrade the entrance to the city at the interstate once that project is completed with money redirected to that improvement as well,” Smith said. “That is the basis for the proposal and is a technique that is used throughout the state on many occasions. In fact, Huber Heights used a TIF for its music center.”
The TIF would redirect 75 percent of the increase in property tax value to the city, estimated at $3 million, which would generate approximately $675,000 over the next ten years, according to William Singer, director of community and economic development. The existing tax base generated by these properties estimated at $900,000 would continue to be distributed as if no improvements have been made. The Northmont City School District would maintain its current tax base and would receive an increase of 25 percent from the improvements for the first 10 years and then 100 percent beyond that point.
Ron Nunnari can be reached at 684-9124, via email Rnunnari@civitasmedia.com or on Twitter @Englewood_Ind