Plan Commission recommends TID No. 11 to support expanded Yaskawa campus

The City of Franklin Plan Commission on June 18 recommended creation of Tax Incremental District (TID) No. 11 to support an expanded Yaskawa America campus, advancing a project plan that includes pay‑as‑you‑go development incentives and a schedule for council and joint review board consideration.

The plan commission's action follows a staff presentation that described the proposed district boundary just south of West Ryan Road and east of Franklin Drive and estimated a base taxable value within the boundary of about $73.4 million. Senior municipal advisor Todd Taves of Ehlers told commissioners the plan projects roughly $38.6 million in added value by Jan. 1, 2034 and said "the taxes on the differential between the 73 and the 117, those go into the TID special fund until the TID is ready to close." Taves described the district as principally intended to accommodate Yaskawa America and an Escala campus in the business park area.

Why it matters: the staff estimate predicts just over $182 million in private capital investment, more than 1,000 new positions with average salaries around $90,000, and a project plan that lists about $5.2 million in eligible project costs, including a maximum $4.2 million development incentive paid on a pay‑as‑you‑go basis from increment taxes.

Key details from the project plan include: • Base value and increment mechanics: existing property value in the boundary (about $73.4 million) remains for taxing jurisdictions; increment taxes generated by value growth flow to the TID fund. • Incentive structure and schedule: incentives are tied to performance milestones; occupancy for the first building must occur by July 30, 2028 to earn incentives on that building. Incentive percentages increase as additional buildings are completed; maximum payment authority extends through Oct. 1, 2044, though staff projection shows the city could repay pay‑go liabilities and close the district as early as 2040. • Local costs and responsibilities: the company will initially fund certain relocation work (staff cited roughly $655,000 to relocate traffic signals) and the city expects to advance limited interim funds (an estimated $115,000) that would be repaid with interest; administrative costs over the TID life were estimated at about $205,000.

John Burgett, who introduced the item, said the TID "primarily is going to accommodate Yaskawa America," and staff noted the district is an industrial TID (staff said about 85% of the area is zoned for industrial use), which carries a 20‑year statutory maximum life.

Commission discussion focused on boundary inclusion and how developed parcels are treated. Staff clarified developed parcels within the mapped boundary are treated as part of the base (taxes on those parcels continue to flow to taxing jurisdictions as before) while under‑developed lots within the boundary are candidates for future projects that can expand the tax base.

After the presentation and questions, the commission voted by voice to recommend a resolution establishing the boundaries and approving the project plan for TID No. 11. Staff said the next steps include common council consideration on July 7 and a final joint review board meeting tentatively scheduled for July 22; the joint review board has final approval authority for TID creation.

The plan commission's recommendation advances the proposal but is not the final approving action; the matter will return to the council and joint review board for decisions required by statute.