DeKalb County redevelopment commission keeps TIF dollars for two districts, passes through SDI

At its May 13 meeting the DeKalb County Redevelopment Commission heard an annual TIF briefing from Baker Tilly Municipal Advisors and then voted to retain 100% of assessed value for the American Heritage Village and New Millennium tax increment financing (TIF) districts while passing through 100% of SDI.

Greg Balsano of Baker Tilly opened the presentation, explaining that TIF (tax increment financing) captures the incremental assessed value (AV) in a designated area and that commissions must decide before June 15 whether to ‘pass through’ AV to overlapping taxing units. “You can pass through any percentage. So it can be 100%. It can be 0%,” Balsano said during the presentation.

Balsano reviewed how TIF works, the typical legal steps to create or amend an economic development area (declaratory resolution, planning commission review, legislative approval), and the typical life cycle for TIF areas, noting older areas sometimes had 30‑year terms while more recent practice centers on a roughly 25‑year life once bonds are issued. He also told the commission that certain school programs may receive up to 15% of annual TIF revenues under state rules for eligible uses.

Commission staff summarized current balances and budgets. Chair and staff reported American Heritage Village had approximately $852,000 cash on hand and the New Millennium area about $343,000; SDI’s current cash balance was reported at about $626,000. Balsano estimated the American Heritage Village incremental AV at roughly $10.3 million, producing an estimated $184,800 in TIF dollars for the year; New Millennium’s incremental AV was roughly $14.6 million with similar increment dollars because of a lower local tax rate.

During public comment Nicholas Stefan, executive director of the Garrett Public Library, asked whether the commission could fund a capital renovation at the library because the library serves parts of the American Heritage Village area. The chair and staff advised Stefan to submit a formal request with project details and multiple bids so the commission could evaluate whether the project would “benefit the TIF district.” Stefan said he attends these meetings to learn more about TIF and that the explanation made him better informed.

Following discussion of budgets and potential projects — including road reconstruction, a possible roundabout at County Road 11 and Bridge 427, trail connections and a possible Garrett Fire Department training update — commissioners moved to retain 100% of assessed value for American Heritage Village. The motion was moved, seconded and carried on an aye vote.

A separate motion to retain 100% of the New Millennium district’s assessed value also passed after discussion. For SDI the commission again voted to pass through 100% of incremental AV, meaning SDI’s incremental assessed value will flow to overlapping taxing units rather than be retained by the redevelopment commission for TIF projects.

The commission also approved several previously authorized claims and invoices: attorney fees for Leitner Law Firm ($720), a Spencer payment of $145,000 and an RTS tactical invoice for $4,884.98. A Butler fire official thanked the commission for funding a brush truck the commission had authorized; the chair identified him during the meeting as the Butler fire chief.

The commission concluded its business and adjourned. The chair and Baker Tilly advised jurisdictions and entities with potential projects to submit formal requests with documentation if they seek TIF funding so the commission can evaluate whether proposals benefit the applicable TIF area and comply with statutory limits.