NEW ALBANY — The first step by the city to facilitate a $16 million apartment project at the former Coyle Chevrolet site downtown was taken Tuesday.
The New Albany Redevelopment Commission approved a declaratory resolution to include a portion of the Coyle Site, which is located along East Spring Street, into the downtown tax-increment financing district.
The project developer — Flaherty & Collins Properties of Indianapolis — plans on utilizing the TIF increment created by the 157-unit apartment complex to pay off a construction bond.
Part of the site was previously included in the TIF district, but a portion of the property still sits outside the zone. Essentially, the TIF expansion would stretch between East Fifth and East Sixth Streets off East Spring Street.
“This is the only adjustment we’re going to make to the TIF,” said David Duggins, director of economic development and redevelopment for the city.
Unlike the former Riverview Project, which never came to fruition, the city isn’t being asked to build a parking garage. Instead, a $3.3 million state tax credit preliminarily awarded to the developer is expected to keep the city’s costs for the project low.
Utilizing New Albany Urban Enterprise Zone funds, the city did foot an economic impact study for the potential project. The study estimated the development could have a $30 million impact on the city within five years of completion. The study assumed the city would have a $1.7 million investment in the project to be paid back through TIF funds over 20 years.
There are several additional steps that will have to be taken by the city before the project could begin. The plan commission and city council likely will have to vote on zoning measures for the development, and the council and redevelopment commission will have to cast ballots on the TIF bond.
The declaratory resolution was approved by the commission unanimously.
Though the discussion wasn’t directly related to the apartment project, the commission spoke about TIF funding during Tuesday’s meeting after receiving a regular report on the status of the districts.
State lawmakers are considering legislation that would cut back on TIF for local government, and commission members said such measures don’t take into account the importance of that funding for municipalities.
“It would affect our quality of life, and we would be a lesser city for it,” said commission member Adam Dickey.
From parks projects to road improvements, New Albany depends on TIF to foot sizable enhancements for the community, he continued. People sometimes criticize the use of TIF and they don’t seem to consider the number of improvements the funding allows the city to make, Dickey said.
The city has also offered General Mills a $7 million package that would include mostly TIF funds to keep the Pillsbury plant in New Albany open. Duggins said Tuesday there’s no update on whether the company will accept the proposal.
He added the use of TIF funds by the city allows New Albany to avoid considerable debt for many projects. Despite concerns about the state legislation, Duggins said New Albany is in a good position.
“The TIFs are strong,” he said.