“If we set our TIF base assessed value in 2013, there is a possibility that it would be set including Patriot’s higher, pre-appeal assessment,” he added. “If they are successful on appeal, it will lower the total assessed value for the TIF allocation area and potentially put the TIF at a negative increment to start.”
By capturing the plant’s new assessed value, the district, which follows a rail line as it runs northeast from Jefferson Street to become part of the Nickel Plate Trail corridor, could generate hundreds of thousands of tax dollars annually, which the city or the Redevelopment Commission could then use for improvements.
McCormack said the city’s planned extension of the Industrial Heritage Trail will be one of the first beneficiaries of the TIF district.
“One of the first things we’d like to do is invest in the trail,” he said. “We’ll look at other things down the road based on the money that’s being generated by the TIF.”
While Patriot Porcelain and Kokomo Recycling are expected to be two main tax increment generators, the district also includes the old downtown railroad depot, which was purchased by the city two weeks ago for $45,000.
The depot, which has been vacant for years on North Buckeye Street, could eventually be renovated using TIF redevelopment dollars or increase the district’s assessed valuation.
McCormack said city officials haven’t yet discussed future plans for the depot.
“We haven’t really gotten into the details of that yet,” he said. “Right now we’ve just gotten into the purchasing of it. As far as what future plans are, we’ll cross that bridge when we get there.”
Martin Slagter can be reached at 765-454-8570, email@example.com or on Twitter @slagterm.