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La Porte redevelopment commission hears annual TIF report, projects and revenue outlook
Summary
Consultant Andy Mauser presented the commission’s annual tax-increment financing (TIF) review, reporting roughly $112 million in captured assessed value, about $3.2 million in TIF receipts in 2024 and an estimate of $3.7 million in 2025; projected increases hinge on enterprise-zone deductions ending at the hospital and new 39 North development.
Andy Mauser of Baker Tilly presented the La Porte Redevelopment Commission’s annual tax-increment financing (TIF) report on Jan. 29, reviewing allocation-area revenues, debt service and projects the commission could fund as TIF collections grow.
Mauser told commissioners the redevelopment commission currently captures “just shy of a hundred and $12,000,000 of assessed value” across its consolidated economic development area and that the tool is working as intended: “TIF’s doing what it should do. It’s a great tool for you now, but it’s also gonna be, you know, a great boost to the local tax base here in the coming decade,” he said.
The consultant said the commission received about $3.2 million in TIF revenue in 2024 and estimates roughly $3.7 million for 2025. Mauser said those totals could rise further as special tax provisions affecting the hospital allocation area expire, projecting that hospital-related collections could increase to about $1.6 million per year once enterprise-zone deductions roll off in roughly five to six years.
Mauser reviewed each allocation area in turn. Highlights included: - Central Business (TIF 1): ongoing collections from the original downtown area plus separate allocation areas for the hospital campus and the Flaherty & Collins apartment project at Newport Landing. The Flaherty & Collins developer agreed to a $440,000 annual minimum tax payment; Mauser said the developer made shortfall payments of about $41,000 in both the spring and fall to reach that level. - Thomas Rose (TIF 2): sustained growth from roughly $999,000 in 2019 to about $1.6 million in recent years, driving substantial revenue for the commission. - Eastgate (TIF 3): a 30-year allocation area that Mauser said will be the first to expire, with the last collections tied to the 2035 pay year; it currently brings in roughly $300,000 annually. Mauser noted a late fall payment and said staff are working to advance the expected receipts to align with projections. - Town Square: rebounds from a low around $75,000 in 2019 to nearly $130,000 projected for 2025 as storefront occupancy increased.
Mauser also described two allocation areas created last year—39 North and Boyd Boulevard—saying neither is expected to collect in 2025 but both should begin generating revenue in 2026 as projects develop. He singled out the Microsoft data center at Boyd Boulevard as a potential large revenue source, including both building value and potential PILOT-like payments.
On debt and coverage, Mauser summarized outstanding obligations and noted favorable historical interest rates on past bond issuances. He reported annual debt service near $190,000 in 2024 and an expected rise to about $220,000 in 2025. Compared with projected TIF revenues, Mauser said coverage is “very healthy,” leaving the commission with funds available for pay-as-you-go projects—he estimated roughly $1.5 million available for ongoing projects after debt service in current projections.
Mauser closed by reiterating that the overarching purpose of TIF is to grow assessed value and eventually return it to the tax base: the commission “is approaching those dates here in the next, you know, 10 years,” he said, referring to upcoming expirations that will restore value to overlapping taxing units.
Commissioners asked no substantive follow-ups during the presentation and accepted the report for the record.
