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Council hears analysis showing townhomes would boost TIF revenue at Northfield Park; ordinance planned
Summary
Staff and Baker Tilly presented a plan to allow townhomes instead of planned quads in the Northfield Park TIF area, saying townhomes would raise assessed value and TIF receipts and free commercial TIF for other projects. Council was asked to introduce an ordinance at the next meeting with action in July.
City staff and consultant Jason Simler of Baker Tilly told the New Castle council that converting planned quad units in the Northfield Park tax-increment financing (TIF) area to townhomes would increase assessed value and yield higher TIF receipts for the redevelopment area.
"At full buildout you're looking at collecting on average about $240,000 a year compared to $130,000," Simler said, comparing the townhome scenario to the current quad plan. The presenter said that higher receipts from townhomes would allow the developer to meet bond payments and free up commercial TIF that the city could use for capital projects that benefit the area.
The presenter reviewed the history of the Northwest Economic Development Area and described bonds issued in 2004, 2006 and 2009 to pay for infrastructure. Council members were told the residential side has underperformed expectations and that developers request the change because of market demand.
Council members asked about timing, developer involvement and zoning. The presenter said staff expects to bring a proposed ordinance for introduction at the next council meeting and to seek final action at the first meeting in July, subject to the council's agreement. The presenter and consultant agreed the developer is bearing much of the construction risk because the developer purchased bonds tied to the residential buildout.
Why it matters: the shift would change the projected tax base and the TIF revenue available to the redevelopment commission, with staff saying the reconfiguration could make the TIF area self-supporting while freeing commercial TIF for other projects in the district.
What happens next: staff said they will schedule the ordinance introduction at the next meeting so the council can consider final action in July. Council members asked to have the developer attend an upcoming meeting so members can ask detailed questions about phasing and demand.
Provenance: topic introduced by staff and Jason Simler (Baker Tilly); discussion spans council Q&A about timing and finance.
