Consolidating the tax increment financing districts in Bloomington could benefit the city as a whole, officials said, though the consolidation has its fair share of pitfalls and considerations that kept one council member from supporting the project.
The Bloomington City Council approved a consolidated tax increment financing district Wednesday, setting up a bigger fund for projects such as Switchyard Park and the Certified Tech Park, which might otherwise be difficult to fund.
The proposal is to combine and expand five of the city’s six TIF districts — Downtown, Adams Crossing, Whitehall, Tapp Road and Thomson/Walnut/Winslow — increasing the TIF space from about 2.5 square miles to about 4.4 square miles.
The combined TIF district will add areas, like the West Third Street corridor and the southern end of Walnut Street, that are redevelopment targets, but not in an existing district.
TIF districts are typically set up to fund a specific set of infrastructure projects, which are expected to increase property values in the area. The incremental increase in property values and taxes is used to pay for that infrastructure.
The idea is that it will expand the life of several of the TIF districts, which are set to expire in 2025 after a change in state law, and give the city the ability to issue about $48 million bonds for projects with large price tags. There are already some obligations pending in the current TIF areas.
“We could do some important things in the city with everyone sharing the costs,” said council member Chris Sturbaum.
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