Andy Mouser, a consultant with Baker Tilly, gave the Michigan City Redevelopment Commission its annual tax-increment financing (TIF) update at the Feb. 6 meeting, reporting stable collections across the city’s consolidated TIF areas and outlining how upcoming expirations and new allocation areas will affect future revenue.

The presentation showed combined collections of roughly $7.5 million in 2024 for the North Side, South Side and Station Block allocation areas, with an estimate of about $7.7 million for 2025. Mouser said the North Side area collected about $4,368,000 in 2024 (the 2024 estimate had been $4,317,000) and the South Side collected about $3,230,000 (versus a $3,185,000 estimate). The consultant projected modest growth in 2025 for both areas.

Mouser said the Station Block/mixed‑use transit allocation area, established in 2023 for the Flaherty & Collins Station Block project, is expected to begin generating TIF revenue in 2027. “Flaherty and Collins has agreed to pay $814,000 beginning in 2027,” Mouser said, adding that the developer payment will increase by 2% annually. Mouser also noted that the city consolidated several older allocation areas in 2023, giving the commission additional flexibility for spending between former North and South TIF boundaries.

Why it matters: several long‑running TIF components begin to expire after 2028; Mouser told commissioners this will return a substantial assessed value to the general tax base. He said the combined North and South expirations will return about $175 million in assessed value after tax year 2028, which he framed as a one-time infusion to the city’s overall tax base and an intended result of TIF policy.

The presentation included a review of outstanding debt tied to particular allocation areas and the interest rates on that debt. Mouser said many existing bonds carry low, locked-in interest rates (examples cited included rates roughly 1.25%–3% on several issuances) and that several debt obligations are scheduled to be repaid through 2027–2028, which will reduce debt service as older TIF components expire.

Mouser also described a 2024 loan obtained through the Indiana Finance Authority’s residential infrastructure program for Northside sewer improvements; he said the loan’s interest rate was locked at 2.43%. Skyler (Staff member) told the commission that Michigan City anticipates receiving the first direct payments from the state under a transportation development district (TDD) arrangement this year and that the city has set up the necessary accounts with the state comptroller for those receipts.

Mouser closed by listing potential future projects where TIF or other financing might be applied, including additional station-block work, site development around Pine Street, Marquette Mall site opportunities and a proposed Town Center Drive road extension.

Commissioners and members of the public asked questions about how TIF reduces the citywide tax rate, the timing of expirations and whether the commission will create new, smaller project-based allocation areas rather than renewing large consolidated areas. Mouser and staff cautioned that some expirations are mandated by state rules and that future policy choices will determine whether new allocation areas are used for individual projects.

Commissioners did not take formal action on the presentation; it was delivered as an informational annual requirement.