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Bloomington Commission Approves Super-TIF

By Sarah Fentem

Posted April 7, 2015

TIF district

The Bloomington Redevelopment Commission Monday night approved a resolution that would expand and combine all but one of the city's current TIF districts, which are special economic zones whose property taxes are funneled back into their own redevelopment.

The new, big TIF will allow the city to take on larger plans (such as cultivating the Switchyard Park area on the city's south side) and be more flexible when it comes to distributing tax dollars for economic development projects.

However, Bloomington Planning Director Tom Micuda wants to make sure the city remembers to look after the less grandiose needs of the neighborhoods that comprise the former, smaller TIFs.

"[The city needs to be] making sure we stay geographically distributed with projects, because we have some big needs related to the switchyards, the tech parks," Micuda said at the meeting.

According to Micuda, the city needs to "make sure we don't lose sight of being geographically balanced."

The resolution also means the lives of the current TIFs will be extended after bonding for the new super-TIF is put in place. TIFs usually have a shelf life of 20-30 years, but after the bonding, the clock on many of Bloomington's TIF districts will be reset.

According to Redevelopment Commission President David Walter There are both pros and cons to extending their lifespan. TIFs don't finance basic needs such as schools. That sometimes places a small burden on non-TIFed properties.

"There's a good reason to put a sunset rule on this, because eventually, when the tax increment financing returns to the overall tax structure, you might say ‘Gee, my local taxes will go down'," he says.

However, Walter says extending the life of the TIF brings vitality and needed services to the community. Additionally, Bloomington's growing tax base means the city isn't lacking funds for basic municipal services.

"As the community has grown the assessed value has grown and the needs have grown," Walter says. "When you look at the assessed valuation of the community that has grown, we're not really hurting that bad, because the community is growing."

He says nevertheless, the tax decrease from dissolving a TIF would most likely be negligible.

"Whenever the tax increment financing districts go away, you probably won't see a huge difference in the amount of money that's collected," Walter says.

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