After several years, the amount of tax-increment financing (TIF) funds available for economic development in German Township is finally beginning to grow.
After the Bartholomew County Redevelopment Commission was created on Sept. 22, 2014, the 231-acre Meadow Lawn Farm near Taylorsville was the only TIF district operated by Bartholomew County government. For the next five years, there was no money available to use for economic development.
The principle behind TIF is to capture future increased tax dollars generated by a new business – and then use those funds to improve a particular geographic area. Improvements might mean road upgrades, water lines, sewer extensions, rail spurs, provide workforce training, site development and other amenities.
After the TIF district was expanded by nearly 3,000 additional acres in late 2019, economic development activity in German Township began to significantly increase. Companies within the district that announced expansions or new facilities include Georg Utz Inc., Peer Food Group , Tsune America, LLC and R&L Carriers.
More recently, Irresistable Food Group, Inc. announced they would build two food processing facilities: King’s Hawaiian and Grillo Pickles.
As of June, 2022, the TIF district had $4,707. Over the next six months, the amount grew to about $117,227.
This has been the first year that new or expanded facilities have started to generate TIF funds, Bartholomew County Redevelopment Commission president Dan Arnholt said. No company pays into the fund until after its new or upgraded facility is completed and assessed. Once that threshold is crossed, the payments into the TIF fund begin the following year.
Redevelopment commission member and county Commissioner Carl Lienhoop had suggested that the county keep building the fund’s balance until it reaches at least $500,000 before any money is spent on infrastructure. Two years ago, the commission voted not to touch the funds until the amount was sufficient to fund improvements.
In a newly-filed spending plan uploaded to the Indiana Gateway for Government Units, the Redevelopment Commission confirmed it will have up to $600,000 in the TIF pool available to spend in 2025. An additional $15,000 has been earmarked to pay an attorney and a certified public accountant.
While the money could be spent, Arnholt did not say the funds would be utilized next year. While it sounds like a lot of money, $600,000 doesn’t stretch very far when used for road upgrades, water lines, sewer extensions, rail spurs, providing workforce training, site development and other amenities that can be funded with TIF money.
The mission of the Bartholomew County Redevelopment Commission is to ensure redevelopment in underutilized/blighted areas and/or areas with barriers to development for a use that is in the best social and economic interest of the county and its residents.
