Danville redevelopment commission debates expanding EDA and creating TIF districts to capture developer interest

At its March 11 meeting, the Danville Town Redevelopment Commission discussed whether to expand the town's economic development area (EDA) and create new tax-increment financing (TIF) districts after several developers approached the town about sites not currently in EDA or TIF boundaries.

Mark Morgan, speaking for the Town of Danville, told the commission that developers are interested in multiple parcels along West Main Street, near US 36, and the Tharp (old Pencils Mobile) site. "The developers were ready yesterday," Morgan said, arguing the town should be ready to expand EDA/TIF boundaries so it can support infrastructure and attract tenants.

Town legal counsel Adam, appearing by phone, advised that amending the EDA and establishing TIF districts is a multi-step process that typically takes "two to three months depending on timing." He outlined the sequence the commission would follow: redevelopment commission action, plan commission review, town council action and a public hearing before the redevelopment commission. Adam recommended doing EDA and TIF amendments simultaneously where practicable to save cost.

Commissioners debated two approaches: (1) predesignating parcels inside a TIF in advance of a specific project to capture future value, or (2) waiting for project-specific application packets and using the new TIF evaluation form to vet incentive requests. Several members favored preparing a tax-parcel list and working with staff and consultants to run financial projections before committing to blanket TIF designations.

Financial concerns framed much of the discussion. Dr. Schaer raised school-district impacts, noting that TIF capture shifts increments away from local taxing units such as schools and libraries and urged caution about how many acres to include. Staff and consultants identified the maximum levy growth quotient (MLGQ) as a key variable; commissioners were told the MLGQ was about 4% this past year and is expected to be 6% next year, which could limit whether local units receive additional revenue from growth.

One commissioner urged caution about "blanket" TIFing because of potential legislative changes that could sunset TIF authority and make early designations risky. Another commissioner said staff and financial consultants can model likely scenarios and return with numbers to guide the decision.

The commission did not take any formal vote on EDA or TIF designations. Instead, members tasked staff to assemble a parcel list and to coordinate with a small group of commissioners, the town's financial consultant (Baker Tilly referenced in packet materials), and legal counsel. Staff said they would also accept specific application packets for individual projects and evaluate incentives using the newly circulated TIF project evaluation form.

Next steps: staff will prepare parcel lists, schedule follow-up work with financial consultants to run levy and revenue projections, and return to the commission with recommended timing and criteria for any EDA/TIF amendments. Any amendment would also require plan commission and town council steps and a public hearing before the redevelopment commission.