Council approves new TIF-backed $22 million redevelopment package, adopts riverfront master plan and rezones Barton property for daycare

Terre Haute City Council voted to create a new tax-increment finance (TIF) allocation area and approve a package of bond and lease agreements that together authorize up to $22 million in financing for public improvements, the council said during its meeting. The council also adopted a riverfront master plan and approved a rezoning that will allow a child-care center to operate at two lots on Barton Avenue.

The redevelopment package includes the creation of a new allocation area, merging that area into the city’s 2020 consolidated economic development area, approval of a lease between the Terre Haute Redevelopment Authority and the Terre Haute Redevelopment Commission, the sale of assets to be used as leased assets in the financing, and an appropriation of bond proceeds. Redevelopment Director Jordan Marvel and outside counsel Dustin Meeks described the financing as a structure that uses TIF revenues to back lease-rental bonds and—because of the lease structure—allows a property-tax “backup” that is intended to lower borrowing costs in the bond market. Jason Simlak of Baker Tilly presented the background reporting the commission is required to file.

Jordan Marvel said the bond proceeds will be used to extend New Margaret Avenue and for repaving work on portions of Hunt and College avenues. Jordan Marvel (Redevelopment director) said the financing permits a package approach: “The bond proceeds are going to be used to finance an extension of New Margaret Avenue, as well as some repaving work on Hunt and College,” and described merging the new allocation area into the consolidated area as an administrative convenience that also broadens how remaining revenues can be used.

Mayor Sackman and city staff described the project as intended to unlock private investment on greenfields near the airport and casino property. Redevelopment staff said the casino’s property-tax yield was a key revenue signal used in underwriting the debt; staff referenced an estimated $4.3 million-per-year property-tax value tied to the casino parcel when describing long-term revenue potential.

Council members voted by voice to approve the five-part package: Resolution 5-20-25 (creating the allocation area), Resolution…