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La Porte council reviews redevelopment TIF report as economic director and RDC present overview of tax-increment financing
Summary
La Porte Common Council members on Monday reviewed the Redevelopment Commission's annual tax-increment financing report and heard an explanatory presentation on TIF from the city's economic development director.
La Porte Common Council members on Monday reviewed the Redevelopment Commission's annual tax-increment financing report and heard a step-by-step explanation of TIF from Bert Cook, executive director of the La Porte Economic Advancement Partnership.
Craig Phillips, presenting the RDC's TIF management report, summarized activity across the city's districts and listed completed and ongoing projects the commission has supported. He told the council the Clear Lake Loop project is nearing completion, work on downtown alleys and the former Don George property (now a Chipotle) has been completed, and new private development is expected in Newport Landing including a Grand Heritage Credit Union branch and a Pine Lake dental office. Phillips said an agreement is in place for Noah's Landing Arcade Full Tilt to operate in Newport Landing and that the Thomas Rose area will receive a major stormwater infrastructure investment.
"You should have all received a copy of the Redevelopment Commission annual TIF report that's going to be submitted via Gateway to the state by April 15," Phillips said.
Bert Cook, the city's economic development director, told the council TIF is often misunderstood and described two common TIF uses: a "pay-as-you-go" approach where the RDC spends new increment as it collects it, and a bonding approach where future increment is pledged to pay debt for up-front infrastructure. "All of the taxes being paid when the TIF district is set up are part of the base and are not touched," Cook said, emphasizing that only new assessed value created after a TIF is formed is captured by the district.
Cook also reviewed other specifics he said apply to La Porte: the city collects only real property taxes within its TIF districts, most TIF districts are 25 years in duration, and La Porte's districts are linked so they can share resources. He provided an example from a Baker Tilly analysis: he said $16 million of assessed value in one allocation area produces roughly $400,000 in increment for the RDC each year, an amount that would translate to only about $14,000 if the increment were returned to the general tax base after accounting for tax-cap losses.
Council members asked clarifying questions about school funding and whether TIF reduces current tax receipts for other taxing units. Cook and Phillips repeated that the base remains with existing taxing units and that the increment is new value used for redevelopment or to support bond payments. Phillips confirmed the TIF report will be posted on the state's Gateway portal.
The presentations concluded with council members noting the complexity of incentives and the need to be strategic. No formal council action or vote on the report was recorded during the meeting; Phillips said the report will be submitted through Gateway as required by state statute.
Ending: The council scheduled no formal vote on presentation items. The Redevelopment Commission's TIF report will be filed with the state via Gateway by April 15 and made available to the public there, Phillips said.
