HANCOCK COUNTY — Plans for a special taxing district meant to foster economic development are moving forward, but not without opposition from some leaders and residents of the area.
Several planning officials feel the district wouldn’t align with the county’s long-term vision. And while one of the goals is to increase the area’s value, taxes spurred by that boost wouldn’t necessarily flow straight to the usual recipients, like the area’s school district.
Leaders are pursuing a tax increment financing district between County Road 500N, Interstate 70 and County Road 800W. The district’s eastern boundary would be 700W between I-70 and 400N, before jutting east about halfway to Mt. Comfort Road before continuing north back up to 500N.
After a TIF district is created, the amount of taxes generated up to that point continue going to all of the usual sources, while taxes generated by new development after that point can get set aside for redevelopment commissions to use to benefit that area. TIF districts are often used to fund infrastructure and draw economic development. The district currently under consideration would be the fifth in unincorporated Hancock County.
The Hancock County Plan Commission voted 4-3 earlier this week that the proposed district conforms to the county’s comprehensive plan.
That plan envisions most of the area in the proposed district for industrial and business park uses — the kinds that tax increment financing is often used to cultivate. The comprehensive plan eyes about a third of the area for residential uses, however.
While there are homes within the currently proposed boundaries of the TIF district, officials don’t plan to include them in the district’s purpose of garnering incremental taxes. The impetus behind a TIF district is to secure taxes from rising assessed value, which commercial and industrial developments can contribute to greatly. Existing residences pose a risk to a TIF district, as they can drop in value.
Sandra Hudson, a resident of the proposed TIF district, was one of the plan commission meeting’s attendees to speak against the idea. She noted that state law on TIF districts requires evidence that development would not occur but for the establishment of the district.
“I would question then whether this west allocation area meets this standard, as the zoning is already in place and development’s going to happen anyway,” she said.
Hudson fears the district would only add to the many warehouses and similar properties going up in western Hancock County. She’s also skeptical of those projects’ promises to create jobs and companies’ intentions to remain in the county for a long time.
“Please focus on the quality of life for the loyal residents who live here and want to make their home in Hancock County,” Hudson said to plan commission members.
When the extra taxes generated by a TIF district go to its overseeing redevelopment commission, that means the funds are not heading directly to the sources they usually go to, like public safety agencies and schools. The Hancock County Redevelopment Commission, however, has identified Mt. Vernon as a potential source for funds generated by the proposed district.
While school districts’ education funds come from the state based on enrollment numbers, operations funds, which back expenses like utilities, transportation and non-education employees, come from local tax dollars.
Jack Parker, Mt. Vernon superintendent, noted at the plan commission meeting that the school district is already losing out on funds due to the state’s property tax caps. He added the district will lose 40% of its operations fund in 2025 due to tax caps and the loss of a short-term financial solution that began in 2012, when the school corporation was in dire straits and the state’s Distressed Unit Appeals Board allowed it to refinance debt obligations and transfer revenue to its operations.
These challenges come at a time when the country’s workforce is changing dramatically and demanding that education systems adapt to new needs, Parker continued.
He expressed thanks to the redevelopment commission for designating Mt. Vernon as a potential recipient of TIF dollars.
“For that reason I must conditionally support this idea of the west allocation area, because it may be the only way we’re going to get some funds from a TIF, and we’re very thankful for that,” Parker said.
Plan commission members voting in favor of the notion that the proposed TIF district conforms to the county’s comprehensive plan were Bill Bolander, Michael Long, Renee Oldham and Bill Spalding, while Wendell Hester, Byron Holden and Tom Nigh voted against.
“I think that it helps define that whole area up there, and we need the money concentrated on infrastructure and that sort of thing,” Bolander told the Daily Reporter. “Our other TIFs work real well, and this should be the same.”
Nigh told the Daily Reporter that he doesn’t agree with including the residential area in the district’s boundaries, despite intentions not to include homes in the incremental-tax-allocation part of the plan.
“I think TIF works pretty well,” Nigh said. “Lord only knows we need infrastructure over there. I’m not against TIF or anything like that, I just didn’t like the boundary.”
The issue heads next to the Hancock County commissioners and for final consideration from the redevelopment commission.
