MUNCIE – Tax increment financing — TIF — is next to useless.
TIF districts are the best thing since sliced bread. In fact, they’re the sliced bread of economic development.
Two completely contrasting opinions on a topic that sometimes inspires debate but never more than in the week since Ball State University released a policy brief that asserted that TIF “is a popular but ineffective economic development tool for Hoosier communities, and it needs more stringent state oversight.”
That’s just not the case, said Todd Donati, executive director of the Muncie Redevelopment Commission, which has used TIF incentives to bolster commercial projects like Muncie Marketplace, the $14-million development that’s home to Dick’s Sporting Goods and other stores, and Village Promenade, the $60-million development near Ball State University.
With those projects and others in local TIF districts, Donati noted, came hundreds of construction jobs and a smaller number of permanent jobs as well as property tax revenue.
Citing Delaware County’s 6.6 percent unemployment rate in the latest figures released by the state, Donati said TIF is an economic game-changer.
“If we didn’t have TIF in place, our unemployment could be 10 percent,” Donati said.
Although it is unlikely to settle the argument over the value of TIF, battle lines between proponents and critics have been drawn in recent days.
Weapon of choice
Delaware County has gone for TIF districts in a big way.