The Nashville Redevelopment Commission is considering the expansion of its TIF area and will take plans to the Nashville Town Council in a future meeting that will show what could potentially be captured in town.
TIF stands for tax-increment financing. In a TIF area, a portion of property tax revenue is captured for use by the redevelopment commission after a property is developed or improved. That new tax revenue is the difference between what that land was taxed at when it became part of the TIF area and what it is being taxed at currently.
Bonding against that TIF money, a redevelopment commission can take out loans for projects that would benefit the TIF area, such as sewers, sidewalks and more.
TIF also stops the flow of those new property taxes to any taxing unit besides the redevelopment commission for up to 25 years. The original taxes on the undeveloped property, though, keep being distributed. After the TIF expires, all taxing units receive the increased amount.
Nashville’s TIF area was established in 2012 and includes nearly all business-zoned areas in town limits.
It does not include Hard Truth Hills, which was annexed into Nashville in January 2018. When the restaurant, distillery and spirit rack house were built there on that 300-plus-acre property, no TIF money was captured because the property was not put in the TIF district.
As of 2019, Nashville had never actually received any TIF money because not enough capturable development had taken place in TIF areas.
The Nashville Redevelopment Commission is looking into expanding the TIF area to include a residential TIF, in addition to other areas currently zoned for business in town. Residential TIF is a relatively new concept allowed for use in Indiana, often to attract developers of housing.
More information will be presented at the next Nashville Redevelopment Commission meeting set for Tuesday, Sept. 1 at 5:30 p.m.
