Greenwood city officials plan to change funding districts through tax increases, including changes involving property destined for single-family home and apartment projects.
During last week’s city council meeting, officials discussed a resolution that would approve an ordinance to amend the Eastside Economic Development Plan and the Eastside Economic Development Zone, which have both were created in February 1997. The main objective of the plan and the EDA is to provide the necessary infrastructure for the development of the area in “the manner and quality” proposed by the overall plan of the city and the unified development ordinance, in accordance with city documents.
The plan changes are intended to improve economic growth at the Main Street and County Line Road exits of Interstate 65 and the area adjacent to both. The stated goals of the amendments are to provide support for new residential, multi-family and commercial developments by improving infrastructure, according to city documents.
The CDEs collect the taxes generated by the real estate improvements. This means that taxes on property improvements, such as newly built structures or redeveloped structures, go to the city’s redevelopment commission, or RDC, for projects in the neighborhood. However, the amount of basic property tax remains unchanged and continues to be paid to entities that currently receive these taxes.
The city’s RDC uses funds generated by EDAs to complete projects or can issue bonds backed by TIF dollars to complete multimillion-dollar projects. Examples of recent uses of TIF dollars are the Madison Avenue streetscape project, the Old City Park redevelopment, the Greenwood Fieldhouse, and the future sports park at I-65 and Worthsville Road.
What is changed
Under the proposed changes, the existing I-65 East allocation area would be removed and a new allocation area, called the County Line Road and I-65 Allocation Area, would be created, according to city documents.
The goal is to increase the remaining amortization or reduction period available for TIF revenue-backed bonds, as permitted by Indiana law. The longer period would give officials more time to achieve the city’s goals for TIF dollars by creating “more favorable conditions for financing infrastructure improvement projects” within the EDA, according to the documents. the city.
Moving the new allotment area north would also fund road infrastructure near and along Combs and Five Points roads, as well as site development on land near County Line Road and I-65. , according to city documents.
Two other allocation areas would also be added under the Amendments: Combs Road/Pride One Allocation Area and Emerson Pointe Allocation Area.
Other changes include the removal of several residential properties from the central expansion allocation area. Many single-family residential properties were included in the allotment area when it was created 25 years ago, however, there was little benefit to including them because the area was already developed, officials said.
“They have no advantage. They weren’t captured, but it just reduces the number of plots managed by this TIF and simplifies some of the administrative work,” Adam Stone, financial consultant for Greenwood RDC, told the city council last week.
City officials say several infrastructure projects could be funded or funded under the proposed changes. The changes could fund improvements along several east/west routes between County Line Road and Main Street, as well as Innovation Parkway, Combs Road, County Line Road and Five Points Road at an estimated combined cost of between $1.5 and $13. $5 million. Improvements to Emerson Avenue could also be funded by the changes, according to city documents.
Funds could also be used for a multi-use pathway and new green spaces and public amenities, as well as stormwater improvements.
Two allocation areas that would be modified as part of the changes relate to residential projects.
The Combs Road (Pride One) allotment area is for a project known as Pride One, which would be located to the east of VM Innovations. This proposed development would consist of over 200 new single-family homes that would all be centrally managed by a single company.
Currently, an apartment complex is set to be built on this land by the Buckingham Companies, with part of the property set aside for future single-family homes. That development is before the City Plan Advisory Board as a rezoning petition on Monday.
This property is not currently in any EDA, so the property will need to be added to the EDA first and then subsequently designated as an allotment area. The resolution would accomplish both, city documents show.
The Emerson Pointe allotment area is for a residential development on an 8.56 acre lot located along North Emerson Avenue, south of the Emerson Pointe Shopping Center. The land in question is currently being developed by The Garrett Companies for a 218-unit apartment complex dubbed The Hangar on Emerson. The complex will include amenities such as a resort-style swimming pool and spa, fitness center and yoga studio, and will have a cafe on the ground floor, according to the city and the developer.
The creation of the new allocation area will allow the issuance of TIF bonds to support development, according to documents.
City officials say the Pride One and Emerson Pointe projects would provide the city with “affordable” housing options for the workforce. While both projects are ultimately market-rate rental projects, the increase in rental units is intended to help provide more housing, according to city documents.
“Increasing labor housing capacity has a direct impact on the city’s broader economic development goals, as the larger labor pool will help current and future businesses to meet hiring needs,” the documents say.
City Council Speaker Mike Campbell, who sponsored the city council resolution with council member David Hopper, did not return a request for comment regarding the placement of residential developments in a TIF district by the deadline.
The proposed changes are currently three-quarters through a four-step approval process.
First, the RDC passed a resolution to change the boundaries and plan, and then the planning commission passed an ordinance declaring the changes consistent with the overall city plan.
Next, the city council plans to pass a resolution approving the planning commission’s order. The resolution passed first reading unanimously last Monday, with one member absent, and there’s still one more city council meeting before moving to the final stage.
The final step is a public hearing on the amendments, which will be hosted by the RDC. Ten days before the hearing, a tax impact statement will be mailed to affected tax units and landowners in the new allotment areas, officials said.
After the public hearing, the RDC will adopt a resolution confirming the changes and finalizing the modifications.