When the Mayor talks about "$3 million in new taxes" from Steelyard Commons, we're supposed to get an image of teachers and policemen returning to work. But look what I just stumbled upon in Trails and Tracks, the Ohio Canal Corridor newsletter (see the Spring 2005 edition, page 9):
Ohio Canal Corridor has been negotiating with the city to design a Tax Increment Financing (TIF) District that includes Steelyard Commons and follows the routing of the Towpath Trail from lower Harvard Avenue towards Canal Basin Park. Such a District would allow for the enhanced value of the property taxes for Steelyard Commons to be directed to underwriting bonds that would provide local funding dollars for the Towpath project. These local funds would, in turn, be used as leverage (local match) for federal transportation funds for trail development. In other words, the single biggest question to building the Towpath -- where to find local match -- would be solved!"TIF" is a development tax subsidy that's a second cousin to tax abatement. The developer/property owner has to pay the regular tax rate on the new value created by the development, but the revenue doesn't go to schools and city services -- it gets diverted into a special fund for "public enhancements" to the project itself.
Needless to say, this idea is currently on HOLD. Like the development from which it would benefit, the TIF is in jeopardy. In fact, recent discussions with key administrative officials concerning Steelyard Commons suggest that the city will attempt to save the deal by directing TIF financing to Mitch Schneider to underwrite portions of the infrastructure he would have provided gratis. Let us hope that our civic leaders come together to salvage Steelyard Commons so it can move forward in a manner that yet allows a TIF for the Towpath. If not, it will be a rare opportunity squandered
I cannot remember ever seeing a reference to a TIF District in all the reporting about the Steelyard project. Can you?
a