By Adam Aasen
In the coming weeks, the Carmel City Council is expected to approve tax increment finance (TIF) money for an $80-million mixed-use development planned near the Old Meridian roundabout, a development that was approved my the zoning committee months ago.
Edward Rose Development Group has asked council for 75 percent of the TIF money raised from its project. The money would be used to repay bonds secured by the developer that would pose no financial risk to the city.
The council unanimously approved the plan in its finance committee on Aug. 11 and is expected to approve it at the next council meeting. Some councilors balked at the idea giving TIF money away since the Carmel Redevelopment Commission has its own bond debt to worry about, but none objected too strongly to this split in revenue.
According to an e-mail from H.J. Umbaugh & Associates, the estimated annual TIF at full build-out would be $1,247,520, beginning payable in 2019. This would break down to $935,640 for developer bonds and $311,880 for other CRC obligations. Over the years, TIF revenue could add up to more than $11 million to help repay the bonds.
It has been speculated that this split in TIF revenue could be a model for future project financing, such as the long-proposed Midtown Plan, a development along the Monon Trail that has been previously quoted as costing up to $100 million. TIF money could be used for an infrastructure project such as a parking garage. It all comes down to finding a deal that works for both the developer and the City Council, about which many councilors have differing opinions.
