VALPARAISO | Although disappointed that the city continues to add to its tax increment financing territory at his district's expense, East Porter County schools Superintendent Rod Gardin said he's encouraged the city is sharing some of the money this time.

The city's Redevelopment Commission voted unanimously Thursday to expand its TIF district to include the Porter's Vale shopping center, which is in Washington Township and within the boundaries of the East Porter County school district. The council is expected to vote on final approval of the measure at its meeting Monday.

In December, the city created a TIF district for the proposed Memorial Hospital medical park development, which also is in Washington Township. The TIF district allows the city to use the increase in taxes from nonresidential development to fund infrastructure improvements needed to serve the development.

The shopping development is expected to generate more than $800,000 in new property taxes when it is fully developed in three to five years. Although it could use the entire amount to fund several road improvement projects, including $4 million for Silhavy Road, the commission will take only 60 percent, about $490,000, needed to pay off bonds it plans to issue to finance the projects.

The remaining funds will pass through, with the biggest share going to the schools. During a sometimes contentious public hearing before Thursday's vote, East Porter County School Board members and others called the city's actions unfair and possibly illegal, and accused the city of mortgaging the future of the district's children.

School Board member Karen Higbie said the reason for a TIF district is to bring business in, but the business is already there.

"So, why take it off the tax rolls and divert the money? We are not getting a fair share of the total," she said. "The future is the kids, and I hope the city's infrastructure doesn't take precedence over that."

The main objection was to the $4 million for Silhavy, which opponents said was not significantly affected by the shopping center and the money shouldn't be used for that.

Councilman John Bowker, a member of the commission, said the amount the city was taking was an extremely minor percentage of the school district's overall assessed value and accused the School Board of being the ones mortgaging their children's future because its long-term debt of $25,000 per pupil was the highest in the county.