City Manager Bryan Heck told commissioners the boundaries of the TIF represent the “unified plan area” that extends from Yellow Springs Street to the west to Spring Street on the east, and north of Buck Creek from Cliff Park Road to Monroe Street on the south.
“What this TIF does is provides a 30-year, 100% non-school revenue TIF that allows for the city to capture any increased valuation, whether it be through improvements to the properties or increased valuation from the auditor over that 30-year period, to be used for public infrastructure items to encourage private investment,” he said.
Heck offered an example.
“If we decided to extend the National Road Mall Commons, that would be an eligible infrastructure improvement to expand that park to encourage additional private investment alongside of that,” he said.
The 30-year TIF time frame would begin after commission approval of the measure, and Heck suggested that even without any improvements, just as it currently exists, it’s estimated the area could generate up to $8 million to be incorporated into public infrastructure improvements over the 30-year TIF lifespan.
Heck called the plan essential to ensure continued the rebirth of downtown.
“There’s been a lot of revitalization of our downtown over the last 15 years, and we continue to invest in the public infrastructure,” he said, noting public spending spurs private investment.
Last year, city officials and other supporters of the Melody Parks project that will result in retail, restaurants and up to 1,200 housing units on the east side of the city clashed with Clark-Shawnee Local School officials, who said the tax money the district will receive will not be enough to educate new students expected in their district.
The proposed downtown TIF, however, will exempt dollars designated for Springfield City School District and the Springfield-Clark Career Technology Center, assuring that those educational institutions will continue to collect the entirety of tax dollars they are due for the 30-year period.
Retired Springfield City Schools superintendent and now Assistant Mayor David Estrop asked for further information on the school-related exemption from the TIF plan.
Heck explained that the TIF would only collect the increased valuation on non-school revenue. For the city, the largest portion of property taxes goes toward school funding, Heck said.
“We have not touched that,” he told the commissioners. “The schools will remain whole. The schools will receive the benefit of increased auditor’s valuations as well as any improved valuation created by investment. Only non-school revenues will be collected for the TIF fund … that could be used for public improvements.”
City officials have embraced TIF as a means of subsidizing new investment and spurring more development in the city, but have come under fire from Springfield Twp. officials who say the new housing developments that fall in their jurisdiction and benefit from the tax break will potentially overcrowd township schools and roadways, overwhelming resources.
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