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Staff member warns South Shore residential TIF will not capture commercial units, urges quick fix
Summary
A county staff member told the ad hoc redevelopment committee that the current residential TIF configuration will not capture commercial property — including multifamily buildings treated as commercial — and urged clarifying and amending the TIF before a developer breaks ground.
A staff member for the Kosciusko County redevelopment ad hoc committee said the county’s present residential tax increment financing configuration "will not capture commercial," and warned the group it must address that limitation before a developer breaks ground. She said multifamily three‑story units would be classified as commercial and therefore excluded from capture under a residential TIF.
The remark came as the committee reviewed a Baker Tilly site‑readiness presentation and considered extending redevelopment and economic‑development areas around the South Shore TIF. "If you don't fix the TIF," the staff member said, "we would lose all of that capture," and recommended overlaying a commercial TIF or converting the allocation area so future commercial or mixed uses are eligible for captured increment. Committee members noted the developer is "looking at breaking ground by November," increasing the urgency of resolving the boundary and classification questions.
Committee members also discussed the mechanics of capture, with one staff participant explaining that the TIF captures increments above an assessed‑value base and that without improvements there is little increment to allocate. The group agreed the next step is to identify exact parcel boundaries, confirm the appropriate TIF type with legal counsel, and, if needed, prepare a commercial overlay so the county can capture increment from current and planned commercial investment.
