The Bartholomew County Council has created a county economic development commission as it continues to work with officials hoping to market available land for development in northern German Township.
While Jason Hester, president of the Greater Columbus Economic Development Corp., said he could not confirm or deny any details of any project in the works for the area, he did say there is a prospect looking at property in the county’s only Tax Increment Financing (TIF) district, which began as the 231-acre Meadow Lawn Farm. That land has been zoned for industrial development since 2004.
Originally, Meadow Lawn Farm was bordered by County Road 800N to the north, the railroad line to the east and U.S. 31 to the west. It also includes a 29-acre parcel that extends out from the southeast corner of the larger area.
In a TIF district, an anticipation bond can be created based on the amount of property taxes generated by improvements that will be made by the new company.
The new company’s property taxes are usually phased in over a 10-year period. The difference between the normal amount of property taxes the firm would be expected to pay, and what is actually provided to local government, is what’s used to pay off the bond. The amount of TIF money usually decreases annually.
However, even after Meadow Lawn Farm was turned into a TIF district in early 2015, it has done little to lure in companies, according to Bartholomew County Redevelopment Commission president and county council member Jorge Morales.
However, German Township suddenly became far more attractive when the TIF district was expanded by nearly 3,000 additional acres located north and east of Meadow Lawn Farm in late 2019, Morales said.
“We’ve had increased looks (from potential employers) like we’ve never seen,” Hester told the council Tuesday. “We had at least four different site visits last year – in the middle of a pandemic.”
Hester also said the Greater Columbus Economic Development Corp. is working on an active project that he anticipates will result in “an opportunity and a request.” He also told the council he anticipates conversations on this opportunity will “start sooner than later.”
But the decision on whether the company decides to locate here, or in another state, might depend on whether a TIF anticipation bond can be issued to help finance the commercial development, Hester said.
State law requires the formation of a three-member Bartholomew County Economic Development Commission in order to hold funds acquired in a TIF district or to issue related anticipation bonds. That will include about $20,000 expected by the end of the year that will be the first funds every acquired in the German Township TIF district, Hester says.
But the new commission’s primary purpose will be to control TIF anticipation bonds to help fund construction for a new company, he said.
TIF anticipation bonds can be used for a variety of purposes such as improvements to public infrastructure, railroad tracks, utility enhancements, site development, building construction and equipment.
According to state statutes, if the county’s seven-year-old redevelopment commission were to have a project that requires a request for a TIF anticipation bond, the matter must first go to the new Bartholomew County Economic Development Commission. It will be their responsibility to hold a public hearing, adopt a plan and discuss the terms of financing, Hester said.
The plan and the terms would next go to the Bartholomew County commissioners for adoption and resolution, Hester said. But the final authorization for a TIF anticipation bond can only be made by the county council, which can either approve, deny or modify the proposed bond, Hester said.
Unanimous approval to create the new commission was given by the council Tuesday. Once formed, the organization will only meet as needed, instead of on a regular basis, Hester said.
Council member Greg Duke has agreed to serve as the council’s representative to the new commission. The two other members who have not yet been selected will represent the city of Columbus and the county commissioners.
