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Council hears first reading of revised interlocal to fix TIF language; debate centers on county discretion to use increment for bond service or corridor work
Summary
The council heard a first reading of an ordinance to approve a revised interlocal agreement with Hamilton County clarifying how tax-increment financing revenue may be used to service bonds or fund improvements along the 140th Street corridor.
The council heard a first reading of an ordinance to approve a revised interlocal agreement with Hamilton County related to tax-increment financing (TIF) for the US 31 Ramps and nearby economic development areas.
Henry Myssecki, Carmel’s redevelopment director, told the council the change corrects a drafting error in the version the council previously approved. He said the revised agreement restores language clarifying that TIF revenue flowing to the county may be used either to pay existing bonds or to support future borrowing for improvements to the 140th Street corridor. "What you're voting on today is the now revised interlocal that puts into practice the original intent," Myssecki said.
Councilors pressed for specifics. Questions focused on whether the agreement effectively allows the county to decide whether to pay down outstanding debt or to borrow against future increment and how that choice would affect Carmel's corridor improvements. One councilor said she expected that after debt service the remaining increment would be used for improvements in Carmel; Myssecki responded that the language ensures the county can use the additional increment to service currently outstanding bonds and that any funds in excess must be spent on 140th Street improvements.
Myssecki also told the council that other bodies — the county redevelopment commission, county council and county commissioners — voted on a corrected version; the copy previously voted by this body had omitted the passage allowing payment of existing debt. He said the omission was inadvertent and that the revised interlocal aligns the city’s version with the versions other bodies approved.
Council members asked for further analysis in finance committee about whether, given state law changes and altered fiscal assumptions since the interlocal was first discussed, the allocation areas and priorities remain the best use of the available TIF. The council president referred the ordinance to the finance committee for review.
The item was presented as a first reading; no final council vote occurred at this meeting.
