HOBART — As city officials contemplate the creation of a new tax increment financing district, there is an extensive list of potential ways to use funding it captures.
Denarie Kane, Hobart's director of development, said TIF dollars could go toward the city's match for state and federally funded projects within the district area, which would include the U.S. 30 corridor and extend to 69th Avenue.
If it's determined a new Interstate 65 interchange is warranted in Hobart, the city could use TIF funds for its portion of the project, Kane said.
Such an initiative hasn't been approved, but city officials have been exploring the possibility.
Approval of a new I-65 interchange would be done by the Indiana Department of Transportation, and it could take years of study to make such a decision.
A known project in which TIF money could help fund is safety improvements planned for the U.S. 30 and Colorado Street intersection. That is expected to happen in the coming years.
Using TIF funding for local matches for projects can provide “a sense of security” because Hobart wouldn't have to pursue other funding methods, such as general obligation bonds, for those purposes, Mayor Brian Snedecor said.
Establishing the TIF also offers another economic development tool that could assist in bringing in new development to the city, Kane said.
Attracting a convention center is among goals Hobart leaders have for potential new developments.
Without the U.S. 30 and 69th Avenue TIF, the city would be limited to tax abatement as the only incentive Hobart could offer for new developments in that area, Kane said.
The list of potential uses for the TIF funding is currently large, but the Redevelopment Commission would create a more concise five-year spending plan after the TIF district is established, Kane said.
Several panels have given authorization for the district. Additional approval is needed, and it could occur in coming months.
The new TIF district would capture tax increment from new development and increases in assessed value from properties within the TIF boundaries.
If the TIF is established by the end of the year, there are two known developments in which increment would be captured.
The new BJ’s Restaurant and Brewhouse planned for property near U.S. 30 and Iowa Street is one of them. The TIF also would draw funding as tax abatement rolls off for the Albanese property, said Todd Samuelson, of Baker Tilly.
The TIF could capture about $1 million annually from the two properties after the restaurant is established and the tax abatement is finished, he said.
The amount the district could capture would change as more development occurs.