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Joint Review Board hears Ehlers' presentation on proposed Howard Tax Incremental District
Summary
At its March 17 meeting the Joint Review Board heard Ehlers consultants say the proposed TID is 57% blighted and could remain open up to 27 years; consultants said reimbursals would be pay-as-you-go and depend on developer construction. The board set a tentative follow-up for May 12.
The Village of Howard Joint Review Board on March 17 heard a presentation from Ehlers consultants on a proposed tax incremental district (TID) and discussed whether the project meets the statutory "but/for" test required to approve tax incremental financing. Ariana Schmidt, a senior financial specialist with Ehlers, told the board the proposed TID is 57 percent blighted and said that, under state rules, it could remain open for up to 27 years.
Schmidt explained that projected incremental value and any reimbursements will depend on how and when the developer constructs buildings in the district. "The actual dollar figures will completely depend on how and when the developer constructs the buildings because it is a pay-as-you-go TIF," she said, according to the meeting minutes. She emphasized that the developer would be reimbursed only if the project proceeds and incremental taxes become available.
Frank Roman, an economic development consultant with Ehlers who reviewed the developer's pro forma, told the board he found unfavorable development conditions and significant infrastructure improvement costs that justify the TIF request. Board members discussed those conditions and the consultant analysis but did not take a vote on establishing the TID at the March 17 meeting.
The board tentatively set a follow-up meeting for 4:30 p.m. on May 12 to consider approval of the TID. The next meeting will be the forum for further review and any formal actions on the draft project plan.
