Officials: Third TIF district approved
CALCUTTA — St. Clair Township officials have approved the implementation of a third Tax Increment Fund (TIF) district, which they say will further help with infrastructure in the township.
On Monday, township trustees approved a resolution that will institute TIF III, which will identify certain infrastructure improvements that are of public purpose, and that once made will benefit the new real property throughout the township.
In the resolution, as read by Trustee Chairman James Hall, owners of new buildings will be required to make service payments in lieu of taxes to establish the fund to help with improvement of certain matters. As discussed previously, TIF III will be designed for new commercial buildings, which include the new Power GM, McDonald’s and Dunkin Donuts building.
Prior to the approval of the TIF III resolution, the township had two TIF districts that are still being utilized to this day.
TIF I, which started in August 1999, was an agreement made between the township and the Beaver Local School District, to which a portion of the real estate taxes for the schools are diverted to the township for the purpose of infrastructure projects. This TIF dealt resulted in the completion of the McGuffey Drive project.
Per the agreement, the schools will receive back their portion of the TIF, which is about $85,000 per year starting in either the second half of 2019 or first half of 2020.
TIF II, which started in 2004 and is similar in manner to TIF III, involves the collection of real estate taxes through commercial businesses, but does not affect the school district in any manner as no property taxes from the schools are collected for this fund. TIF II is expected to expire in 2024.
The introduction of TIF III also comes just as TIF I is expected to expire this upcoming August.
Earlier this year, township officials planned to pay off the TIF I debt by October 2018, 10 months before it was set to expire, as the district had made aggressive attempts to pay off the debt, while also looking to handle any cleanup efforts.
In order for that to happen, however, the township had to receive approval from the Beaver Local school board due to the school’s participation in TIF I, which the board gave in October.
While the schools will not be required to pay any additional monies or participate in TIF III, they were required by Ohio Revised Code to grant the township permission to institute the new TIF fund. TIF III will also not affect taxes of residents living within that school district.