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 6-20-25 (merging the allocation area into the 2020 consolidated economic development area), Resolution 7-20-25 (lease and financing approvals), General Ordinance 1-20-25 (creating a New Margaret Avenue nonreverting fund), and an appropriation authorizing up to $22,000,000 to fund the project. The council’s public record shows those measures passed by affirmative voice votes during the meeting.

Separately on land-use, the council approved Special Ordinance 5-20-25 to reclassify property at 50502 and 504 Barton Avenue to allow operation of a day-care center. Attorney Richard Shepkin presented on behalf of the petitioner, describing the proposed use and an existing operator that provides 24-hour care at another site. Council members amended subsection language on the floor to limit the ordinance to the day-care use and to clarify the reversion language if the use does not materialize within six months; the council then approved the ordinance as amended.

Other adoption votes included: - Special Ordinance 14-20-25, an amendment to engineering department salary lines and nonreverting inspector positions, approved by the council. The engineering director said the inspector positions are funded by inspection fees and that an engineering-level hire would be added this year with a salary-line amendment. - Resolution 9-20-25, authorizing the city to use public–private (Indiana Code 5-23) alternative delivery procedures (for example, build–operate–transfer) for selected projects, approved by the council. - Resolution 10-20-25, adopting the Riverfront Development Master Plan, approved by the council. Riverfront director Lori Danielson characterized the plan as a 10–15 year strategic blueprint prepared with consultants, the Army Corps of Engineers and public engagement; she said it is intended to guide grant applications, private partnerships and phased public improvements. - Resolution 11-20-25, a transfer of $500,000 in the casino fund budget to contractual services to support portions of the Tarrytown water/project activity, approved after a ministerial correction to the resolution text.

A separate rezoning request for lots at 2310 and 2314 Locust Avenue (Special Ordinance 13-20-25), proposed to permit a used-car lot, failed for lack of a second after extensive council and public discussion; the applicant’s representative described reinvestment in property but staff and the city engineer had recommended an unfavorable finding for auto sales citing proximity to day-care and residential uses. Special Ordinance 12-20-25 (a different rezoning) was withdrawn by its petitioner.

Why this matters: The redevelopment financing and appropriation authorize a large capital program that will be paid from TIF revenues tied to a newly created allocation area and can change how certain streets and utilities are extended near the airport and casino. The riverfront plan establishes a long-term land-use and public-space vision that council members said is intended to attract private investment and strengthen tourism and quality-of-life amenities.

Votes at a glance - Resolution 5-20-25 (create New Margaret allocation area): Approved (motion to approve moved by Councilperson Boland; seconded by Councilman Chalos). Purpose: create TIF allocation area to capture incremental property tax for project financing. - Resolution 6-20-25 (merge allocation area into 2020 consolidated economic development area): Approved (moved by Councilperson Loudermilk; seconded by Councilman Chalos). Purpose: administrative consolidation; allows broader use of revenues. - Resolution 7-20-25 (approve lease/financing structure between Redevelopment Authority and Commission): Approved (moved by Councilperson Loudermilk; seconded by Councilman Dinkel). Purpose: enable lease-rental bond issuance with property-tax backup to lower borrowing costs. - General Ordinance 1-20-25 (create New Margaret Avenue nonreverting fund): Adopted (moved by Councilperson Hinton; seconded by Councilman Chalos). Purpose: receive bond proceeds for project spending. - Appropriation for 2025 (New Margaret nonreverting fund): Approved (appropriation up to $22,000,000). Purpose: authorize use of bond proceeds for project contracts. - Special Ordinance 5-20-25 (rezoning 50502 & 504 Barton Ave for day-care center): Approved as amended (moved by Councilman Dinkle; seconded by Councilperson Boland). Amendments included striking permissive language and clarifying reversion to R-2 if the day-care does not materialize in six months. - Special Ordinance 14-20-25 (engineering nonreverting salaries and inspector positions): Approved (moved by Councilman Denkel; seconded by Councilperson Hinton). Purpose: correct line items and permit hiring of inspector positions funded by permit fees and a returning engineer hire. - Resolution 9-20-25 (public-private delivery authority under Indiana Code 5-23): Approved (moved by Councilman Azar; seconded by Councilperson Loudermilk). Purpose: enable alternative delivery methods (e.g., build–operate–transfer) for complex projects. - Resolution 10-20-25 (Riverfront Development Master Plan): Approved (moved by Councilperson Boland; seconded by Councilperson Loudermilk). Purpose: adopt a 10–15 year master plan for the city’s riverfront; staff will use the plan when applying for grants and reviewing private proposals. - Resolution 11-20-25 (transfer $500,000 in casino fund budget): Approved as amended. Purpose: move casino-pool project funds into contractual services to support the Tarrytown water project. - Special Ordinance 13-20-25 (rezoning at 2310 & 2314 Locust Ave for used-car lot): Died for lack of a second (motion to approve made; no second). Staff/engineer had issued unfavorable recommendations. - Special Ordinance 12-20-25: Withdrawn by petitioner.

Discussion and next steps Council members and staff said the New Margaret package will be followed by a public hearing before the Redevelopment Commission and additional implementation steps including engineering, procurement and bond marketing. Redevelopment staff noted the potential to coordinate City, airport and private partners on utilities and road extensions. The riverfront plan will be released to the public with an implementation team and staged projects; staff said grant-seeking and private negotiations will follow.

Ending The council completed the evening by handling several other routine zoning and budget items and then adjourned. Redevelopment staff said they will return with required follow-up reports to the Redevelopment Commission and that project design and procurement steps will begin now that the funding structure and appropriation are approved.