TIF consolidation OK'd by Bloomington Redevelopment Commission

TIF area will increase from about 2.5 square miles to about 4.4 square miles. The expanded area could give the city of Bloomington the ability to bond up to $48 million for projects, though exactly what those projects will be has not been determined.

Here’s how a TIF district works:

If a person builds a new office building on Kirkwood Avenue, all money from the property taxes that new office building generates will not go to entities such as the city of Bloomington, Monroe County or the school system, but instead will go to a special pool of tax money known as a TIF district.

This special pool of money is designated for infrastructure improvements, including roads and sewer projects or trails and sidewalks, although the “infrastructure” term can be stretched. In 2013, the Monroe County Redevelopment Commission gave funding to Ivy Tech Community College to purchase a building for a new nursing school facility as an investment in “intellectual infrastructure.”

And some of the stretch may come from state legislators who are considering Senate Bill 478, which would allow redevelopment commissions across the state to fund public transportation or school transportation corporations using TIF dollars. It passed the Indiana Senate and was referred to the Committee on Ways and Means in the Indiana House.