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Council postpones commercial TIF and New Community Authority items while school board finalizes income-tax sharing language
Summary
Council members agreed to keep a commercial tax-increment financing (TIF) ordinance and a related New Community Authority (NCA) resolution on the agenda while awaiting documentation and action from the local school board; the law director recommended leaving the items for further review.
During consideration of large development-related legislation, the London City Council agreed to postpone action on a commercial tax-increment financing (TIF) ordinance and a related resolution establishing the London Gateway New Community Authority until the city receives additional documentation from the local school board.
A council member reported a late-day development: Paul Gross had called and said the school board had reconsidered its request for income-tax sharing tied to the commercial TIF and planned to hold a special session to finalize language. The speaker said the school had "recapitulated" its request and would provide documentation for the council’s next meeting so the city can proceed with eleventh reading and possible adoption at the May 1 hearing.
The council discussed fairness concerns about an income-tax-sharing arrangement that would allocate new municipal income taxes from commercial properties to the school district, and the potential impact on city services in the commercial TIF area. The speaker said there were "no anticipated residential structures" in the area at this time and that an income-tax-sharing arrangement for new revenues in excess of $1,000,000 could affect the city’s ability to provide services.
Law director and staff input
The law director told council staff earlier in the day that the school board had not yet taken action; both the law director and a councilmember recommended leaving the items on the agenda to allow the school board time to finalize its portion of the agreements. Council members asked for the school board’s written documentation before proceeding to further readings.
Outcome
The commercial TIF ordinance and the NCA resolution were left on the agenda for further review and documentation. Council members asked staff to obtain the finalized school-board language and returned the items to the agenda for the May 1 meeting.
Why it matters
If approved, the commercial TIF and the NCA could alter tax treatment and future revenue flows for the identified parcels, and any income-tax-sharing arrangement between the city and the school district would affect how growth in the commercial area is allocated between the city and the schools. Council discussion focused on fairness and the need for fully executed documents before final votes.
