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County outlines New Carlisle allocation area expansion and redevelopment bond backed by TIF
Summary
County staff proposed creating Allocation Area 5 in New Carlisle for utilities, property acquisition and trail work, and discussed a redevelopment commission taxable bond backed by TIF revenues and a 'special benefits' tax as backup; designated taxpayers (including AWS parcels) would permit collection of personal property taxes in the allocation area to support the bond.
County economic development staff briefed the council on proposed changes to the New Carlisle Economic Development Area and an associated redevelopment bond the council will consider on October 8.
Bill Schallio, economic development director, said the proposal would create Allocation Area 5 (about 34 parcels and approximately 378 acres) focused on utility projects, targeted property acquisition, and potential bike/pedestrian trail work and that it would add certain Amazon Web Services-related properties as designated taxpayers to capture personal property taxes in the allocation area.
Phil Fasenda and other staff described the bond as a redevelopment district bond that functions similarly to a general-obligation bond but is primarily financed with TIF (tax increment financing) revenues; the bonds would be taxable to provide flexibility for property acquisition and resale. Fasenda said TIF revenues will be pledged for repayment and a special benefits tax will act as a backup, which the presenters said should yield more favorable interest rates than an unsubsidized taxable bond.
Councilors asked whether allocation-area funds are restricted to projects that 'in- or serve' the area; staff said statute permits funding projects that demonstrably serve one or more allocation areas. Staff also described coordination with the town of New Carlisle, potential rail corridor considerations and property-demolition work on a former trailer park site owned by the redevelopment commission. The proposal is intended to provide funding to begin planning, right-of-way acquisition and limited construction for projects in the area.
