The Columbus Redevelopment Commission has decided to keep money collected from its four Tax Increment Financing districts instead of allocating it to other taxing entities.
The commission voted 4-0 on Tuesday to retain money from the four TIF districts: Central, Columbus Municipal Airport, South Commons and Cummins economic development areas. The city is required to consider returning some of the money to local schools and other taxing units if a percentage is not completely used.
Four resolutions were approved by the commission during the meeting. The move was required under state statute, said Stan Gamso, redevelopment commission attorney.
The money will be used for different projects in Columbus, along with debt associated with those and debt services, said Heather Pope, city redevelopment director. Among the projects within the Central TIF include a $30 million railroad overpass project at the State Road 46/State Road 11 intersection.
The state has agreed to pick up $15 million of the total cost toward the project, while the remaining amount is being covered by the city, Bartholomew County, Cummins Inc. and the Louisville & Indiana and CSX railroads.
Funding from the TIF district will also be used for the city’s Columbus Riverfront project and ongoing work associated with the State Street Revitalization Project, Pope said. Money will also be used for Brownfield remediation just east of the Bartholomew County Jail, in addition to removing the former Walesboro Airport from the floodplain, she said.
TIF funding in the South Commons economic development area will be used to pay off a $1.63 million bond that was issued in 2012 for construction of the Cole apartment building. Money within the Cummins TIF will be used toward paying off a $12.2 million bond issued in 2011 and is set to be paid off in 2030, Pope said.
A resolution tied to the Cummins economic development area will require subsequent approval by the Columbus City Council since the amount of excess assessed value exceeds 200 percent, according to state statute.
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The Columbus City Council will consider a resolution allowing the city to keep TIF money from the Cummins economic development area during its 6 p.m. meeting June 19. The resolution requires approval by the council since projected revenue and expenditures exceeds 200 percent.
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