Brian Payne
City officials are planning some significant expenditures from Tax Increment Financing (TIF) districts in 2023.
The Columbus Redevelopment Commission recently voted to capture 2023 tax increment revenues from the Central, Airport, South Commons, Cummins, Second and Lafayette, and Midtown TIFs.
“Once a year, the redevelopment commission makes a determination on whether to capture or pass through incremental assessed value for the following year,” explained Andrew Lanam with Stifel Financial Corp.
Of the allocation areas, the Central TIF is expected to have the largest amount of expenditures in 2023, with a little over $13 million projected. This includes:
- $5 million on the riverfront project
- $3 million on the hotel conference center
- Nearly $1.9 million for debt payments and transfers
- $1.5 million on Second Street property/improvements
- $1 million on workforce development
- $500,000 on infrastructure at NexusPark
- $150,000 for professional services
According to the Central allocation area’s budget, projected TIF revenue for 2023 is a little under $9.16 million, and the year-end cash balance for the fund is estimated at $10.16 million.
Some of the above items are also expected to be included in 2022 expenditures. It’s projected that $2.4 million will be spent on the riverfront project this year.
When asked about the $1.5 million for Second Street property/improvements, Redevelopment Director Heather Pope explained that the money is being set aside for potential improvements along the road, such as on-street parking in front of the Taylor development and upgrading intersections to allow for pedestrian crossings.
“We have earmarked just some funds for improvements along Second Street, and we have been working with INDOT on considering ways to slow down traffic,” she said..
However, she added that this potential work is “in preliminary stages” and still being discussed. If the commission decides to purchase any properties along Second Street for redevelopment, the funds could also be used for that, she said.
The 2023 budget for the airport allocation area also contains some items of note. TIF revenues are projected to be $476,319, and expenses are estimated at $775,000. The year-end cash balance for the fund is expected to be $828,245.
Projected expenditures include $200,000 for pre-engineering to replace the existing control tower.
According to Columbus Municipal Airport Director Brian Payne, the tower dates back to the 1960s.
“It has issues from an ADA standpoint and safety standpoint for our control tower operators,” he said. “… While it looks physically deteriorated, we’ve had several studies done to show that it is still structurally sound. So it’s still safe for them to be in there, but just a lot of the safety measures of what you would consider kind of current-day standards are not what they were back when it was built back in 1962. Stair tread height and width and all of those things for the controllers walking up and down those stairs every day.”
He added that a new tower is also needed to support the airport as its operations continue to grow.
The airport has submitted another request for Bipartisan Infrastructure Law (BIL) funding to replace the control tower, and Payne feels optimistic about its chances.
In terms of the amount budgeted for pre-engineering, he said that the airport is trying to be proactive. That way, if they are awarded grant funding for the project, they can start initial steps such as design.
“I don’t know how much $200,000 will get us from a preliminary engineering standpoint,” he admitted. “So we’re trying to talk with a couple of engineers right now on what some of those preliminary engineering numbers could be. But I suspect the number will be much larger, from an engineering standpoint, than $200,000.”
Payne added that they’ve considered reaching out to the Cummins Foundation’s Architecture Program, as he expects the new tower to be a “significant building across the landscape of not just the airport, but all of Columbus.”
Another potential 2023 expense from the airport TIF is $500,000 for the aeroplex commerce center project.
“There’s a section of the airpark that is not developed yet,” said Redevelopment Director Heather Pope. “And we’ve approved some funding for him (Payne) to hire a surveyor and do some engineering work. And what you see here is actual requesting funds to do the infrastructure work — so build the roads, extend the utilities and things like that. I would anticipate this number being larger in total. … He’s estimated around $500,000 in 2023, and maybe another $200,000 in 2024.”
Infrastructure work would also be likely to include work on drainage, sidewalk, curbs and gutters.
In discussing the project, Payne said that putting in a new road — along with the related infrastructure — will enable the airport to lease 15 additional lots.
“I can’t currently lease any of that property the way that it’s configured today,” he said. “But being able to build the road with the water and sewer infrastructure, as well as sidewalks, throughout, is going to really create an opportunity for us to lease additional ground for building of likely commercial-type structures.”
The improvements would also include a sidepath along Poshard Drive, he added.
Another projected expense for 2023 is $25,000 for an outdoor sports area. Payne said this concerns an approximately 60-acre area on the west side of the airport, which is outlined by River Road, Warren Drive and Cunningham Drive.
The airport is thinking of that area as the “Airpark Columbus Sports Complex”, primarily for outdoor athletics. There might be potential for Police Athletic Activities League Football program to use some of the space. IUPUC, which recently joined the National Association of Intercollegiate Athletics, is another potential candidate to use the space. The airport has looked at setting aside certain areas for baseball and softball fields for the college, said Payne.
Additionally, the site could potentially offer areas for lacrosse, rugby, cricket and cross country.
“The $25,000 is just a preliminary design sketch,” he said. “We’re working right now with our own consultants about an overall kind of master plan. So if you looked at the whole 60 acres, where could you possibly put some things to make them work? Well, this $25,000 would help us really more focus on what the formal design of that would be.”
He added that the airport is making sure there’s “buy-in” from the various groups, which is why the design phase has been pushed off for another year.
Another item of note from the redevelopment commission’s May 16 meeting was that the decision to capture revenue from the Cummins allocation area will require approval from city council. This is because the area’s revenue exceeds its expenditures by over 200%.
“For each one of these resolutions, if the revenues exceed the expenditures by two times or more, then regardless of what the redevelopment commission’s actions are — whether to keep the assessed value or to pass it through — ultimately the city council would have the final say on that,” said Lanam.
Projected TIF revenue for the Cummins allocation area is about $5.17 million, with $2.085 million budgeted for debt service on outstanding bonds.
