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City presents 75/25 TIF proposal to Tipp City Exempted Village board to fund plaza and 60‑acre redevelopment
Summary
City officials asked the Tipp City Exempted Village school board to approve a 75/25 tax‑increment financing split over a proposed 30‑year term to help the city recover approximately $18 million it plans to invest in redevelopment of Tipp Plaza and a 60‑acre site; presenters said the district could still gain roughly $2 million in net new revenue under conservative estimates.
City officials on Thursday asked the Tipp City Exempted Village School District board to consider a partnership that would split future tax growth from two redevelopment sites so the city can recoup investments to attract new businesses.
Eric Mack, the city manager, told the board the city is proposing a 75/25 tax‑increment financing arrangement for up to 30 years and that, without the TIF, “the projects don't work.” He said the city expects to invest about $18,000,000 in two major efforts: a mixed‑use redevelopment of Tipp Plaza and development of a roughly 60‑acre commercial tract the city hopes will attract a grocery store as an anchor.
The city presented conservative projections showing the district could receive roughly $2,000,000 in additional revenue over the life of the projects, though a portion of that would be existing revenue reallocated in the early years. Presenters also described a proposed New Community Authority (NCA) that could levy service charges or a small sales tax (0.5–1%) on purchases in the redevelopment area to help cover city costs.
City staff emphasized the timing mechanics of a TIF: the increment only begins when a property is developed and raises assessed value, so the district would continue to receive existing tax revenue until new development occurs. A city representative also noted the legal distinction that a 30‑year TIF term would require board approval but a 10‑year split could be enacted without board approval, a point flagged for the board to consider.
Board members asked how long development might take and whether the city would retain title to the land. Mack said the city expects a phased schedule tied to lease expirations and due diligence, with some parcels potentially developing in two to three years and other elements phased later; the city intends to transfer property to a developer eventually but said TIF commitments would remain attached to the parcel.
Presenters cited comparable local projects and said the development partner had worked in nearby communities. They reported more than 900 community survey responses and said further outreach to high‑school‑age residents is planned.
There was no formal vote on the TIF proposal during the work session. Presenters concluded by inviting questions from the finance director and board members. The board will consider the presentation and any formal requests at a future regular meeting.
