The Redevelopment Commission on July 15 received a detailed review of tax-increment financing (TIF) revenues, outstanding bond obligations and individual fund balances from consultant Baker Tilly and city staff. The commission heard that a $2 million contribution from Wayne County toward the capital stack for the 6 Main project was transferred to the bond trustee and will be drawn down last as vouchers are submitted.

The presentation matters because the commission uses TIF increment to pay debt service and to fund pay-as-you-go projects; recent state legislation (referred to in the meeting as SEA 1 / Senate Bill 1) will reduce some TIF revenues for certain property types, a change the consultant said will create a projected dip in collections beginning in 2026. The consultant told the commission the projected decline is manageable for existing debt service but will be monitored as the law phases in.

Baker Tilly presented Pay 2024 collections versus estimates and a short-term projection showing aggregate coverage of debt payments. The consultant said Pay 2024 collections were about $2.855 million versus an estimate of about $2.88 million, and forecasted Pay 2025 collections near $3.034 million before the dip projected for 2026 tied to recent tax law changes. The presentation also walked commissioners through individual allocation-area funds and outstanding bond maturities, and noted that as some bond issues mature the city will regain access to those increments for projects.

Commissioners and staff discussed several specific funds and projects. Staff said allocation area 1 had roughly $3.0 million available for new projects after recent transfers; Johns Manville area funds showed about $1.76 million available with $200,000 already earmarked for Richmond Community Schools; the Heartland fund was being used primarily for scheduled bond payments and had about $960,009 available for that purpose; and the Midwest Industrial Park fund is funded in part by a year-end TIF transfer from allocation area 1. The consultant told the commission the Johns Manville bonds are expected to be paid off in early 2036, after which that areaincrement would be available for other projects.

On project-specific items, staff reported that the former Reed Hospital owner was completing a remediation plan approved by the Indiana Department of Environmental Management (IDEM) and expected remediation to finish by the end of the year; once IDEM signs off, environmental restrictive covenants will be recorded and a payment from Reed will be processed to the commission as previously agreed. Staff also said a prospective project is interested in the Mechanics Laundry site but that development is on hold pending determination of next steps.

Commissioners asked for public-facing explanatory materials to help residents understand how TIF captures assessed-value growth rather than directly redirecting tax dollars from schools or other units; staff agreed to provide an educational version of the slide that Baker Tilly used. Baker Tilly and staff emphasized they will continue to monitor the SEA 1 impact as it phases in and will include that analysis in future reports.

No action beyond acceptance of the financials was required at this portion of the meeting; the commission later voted to approve the June financials as a separate motion.