CLARKSVILLE — With the growing potential for economic development across Southern Indiana, Clarksville has put in place steps to further entice developers to choose the town as a viable home.
At Tuesday’s meeting, the Clarksville Town Council unanimously approved action on five areas that could benefit from increased development — by offering progressive tax abatements to prospective developers.
The action taken Tuesday include two ordinances designating areas around the Clarksville riverfront and Stansifer Avenue as economic development target areas, and three resolutions to move forward in preparing economic revitalization area designations along Progress Way, Ind. 60 and Interstate 65 between Interstate 265 and exit 7.
While the town has offered incentives to developers on certain projects in the past, such as providing a portion of funding upfront to help spur development, having a designated area means the system would already be in place to offer tax incentives.
“What it does is level the playing field on the incentives that we can offer versus our adjoining neighbors,” Clarksville Town Manager Kevin Baity said. “Right now, we can’t and they do.”
DIFFERENT NEEDS FOR AREAS
The difference between the two designations is that the revitalization areas would be more focused on new commercial and residential ventures in parts of town that may have older buildings and need more in-depth attention, such as rezoning or rehabilitation, Baity said.
The economic development areas would be geared toward the heavy commercial or industrial side of things.
New developers in the designated areas would have access to abatements, or a gradually decreasing postponement of taxes on the new growth that go to taxing bodies in the town that collect property taxes, such as the school district.
But it won’t change what those taxing bodies already receive, Baity said. It just means that to receive taxes on the new growth will be a gradual five- or 10-year rise until they can collect fully on the new developments.
“We’re not taking away taxes; we’re capturing the new investment tax ... by abating it [for a certain time] in favor of a developer,” Baity said.
In any of the areas, individual developments would have to be approved on a case-by-case basis first by the Clarksville Redevelopment Commission, which would then make a recommendation to the town council for final approval. Those failing to comply with agreed-upon standards would not be eligible for the tax credits.
A COMPETITIVE EDGE
Councilman Tim Hauber said the incentives will help make Clarksville more competitive in an area primed for new growth. Jeffersonville and New Albany already have similar plans in place.
“What’s going to happen is when development picks up ... and we start getting some projects, then obviously other people are going to start following suit,” Hauber said.
The projects will be beneficial across town, he said, and go hand-in-hand with the Clarksville Comprehensive Plan and the South Clarksville Redevelopment Plan, both passed within the last few years.
“If there is a tool that will help [a] project come to realization, [developers] will be able to move on the project without reservations,” Hauber said. “In our area, if you don’t offer incentives or something to bargain with, then people just move on down the road.”
While the ordinances on the Stansifer Avenue and riverfront areas were final actions creating the districts, the other three areas are still works in progress. What has to happen next, under Indiana law, is the town will have to notify any affected taxing bodies, file documents with the county auditor and hold a public hearing for each.
At that point, the council could take action on ordinances to set them into stone as redevelopment areas.