The Evansville Finance Committee met on Monday night and went over the pros and cons for the allocation of $450M of expenses of Exchange Street construction from Franklin to Water Street.
Mr. Connors explained that in discussing the project, people have referred to "Exchange Street expenses" but in reality there are two portions to this, first the portion from Main Street to Franklin that was originally in TIF 5, and then the portion from Franklin to Water(450M). The first portion was 350M and part of TIF 5. The second portion was not really decided on as to whether it was going to be in the TIF or not. Some had assumptions that it would be. Mr. Connors went on that the city is the principal owner of property on Exchange in the second portion, and the only tax increment that might occur would be if the city chose to sell the land. It is true that some lots next to the railroad tracks may be developed, but still this would result in a fairly small increment result.
Mr. John Decker represented the Redevelopment Authority and explained the reasoning for their recommendation not to include the second portion in the TIF. He explained that it is important for a TIF to have enough money available to be a motivation for developers to come to the table with their projects. Developers would look at a TIF with heavy loading of infrastructure costs as being a poor prospect for success and not be motivated to locate in it.
At the end of the discussion, Ald. Cothard stated, "Well, we have the money in the regular budget for this. Let's just pay for it." Everyone agreed. The issue will not be on the Council agenda for the Tuesday meeting since it is settled.
For the record, the Observer just observed.
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