Liberty Township TIF

Liberty Twp.Economic Development Plan

(Hospital area / US-6 TIF)Tax Incremental Financing

There are some misconceptions about County TIFs

Porter County TIFsWhen they are properly structured and administered:• they do not steal money from government;• they are only in existence for a few years (10-15);• they only tax new businesses and commercial;• residential and current zoning is not affected;• if the TIF fails, nothing is lost except opportunity.

The Liberty TIF area --…is roughly the length of US Hwy 6, from SR 149 to the Jackson Twp line (1/2 mile east of N. Calumet Ave). It includes all the area one parcel north and south of US 6 from 149 to Meridian Road and east of N. Calumet Ave. (Old 49) to Jackson Twp. Between Meridian and N. Calumet Ave. it extends north to CR 900N and south to CR 700 N. --see next slide--

Proposed TIF area

What is a TIF?

Full plan is at http://www.porterco.org/DocumentCenter/View/2590

Tax increment financing (TIF) is a public financing method that is used as a subsidy for redevelopment, infrastructure, and other community-improvement projects in many countries, including the United States. Similar or related value capture strategies are used around the world. Through the use of TIF, municipalities can dedicate future tax revenues of a "particular business or group of businesses toward an economic development project in the community.“

How does it work?


1. The value of ALL the properties inside the district is assessed or calculated and the total amount of property tax generated by all those properties is calculated – let’s call that number the BASE AMOUNT OF PROPERTY TAX REVENUES.

2. A life span of the TIF district is determined by need or estimate of growth.3. For this life span all property revenue ABOVE this BASE AMOUNT is captured by the

TIF district. 4. This amount – the amount over the BASE -- is called the INCREMENTAL REVENUE.

Then what?


In the beginning, there is no Incremental Value. It only accumulates when new businesses or commercial enterprises begin to locate within the TIF District. The County and the Township continue to operate, as they had, from the Base Amount—no tax revenue is lost or “stolen”.But the property tax revenue received from new businesses and commercial (no residential or new residential units) goes into the TIF bucket each year for the life of the plan. This is the Incremental Value. This is the money used for specified economic development projects; it is used according to the needs of the township and only in the TIF District

The Afterlife?


When the life span is completed, the TIF goes away, all tax revenues return to their normal distribution. Hopefully, there has been some noteworthy increases in revenue, some new job opportunities, and increased property values.The over-all effect is that certain taxes were used to develop or redevelop capital projects that fund projects like sewer and water lines, sidewalks, school needs, road and street enhancements, parks,--anything that benefits the community. And that benefit extends to the entire township in almost all cases. Otherwise, the money disappears into the general fund.

Questions?There are always questions, of course, and there are people to answer them. The best place to ask them is at the County RDC (ReDevelopment Commission). They will meet on St. Patrick’s Day, March 17th, 2016, at 8:30 am in the County Administration Building at 155 W. Indiana St., Valparaiso. That day, they will be considering the Liberty / Porter Hospital Area TIF District. They want to see a lot of Liberty Township faces at that meeting.We should ask questions:• That concern the administration of a specific TIF District’s funds and projects;• If projects related to a TIF area, but not located within that area, can be eligible for

funding;• If a Liberty TIF Board can be advisors to the RDC for project approval and distribution

of funds;• If administrative costs can be reduced, eliminated, or shared with other county TIFs.

Contacts?The Woodville Foundation is currently spearheading the Liberty / Porter Hospital TIF District formation. Some of the officers of that group can answer general questions:• Ed Seykowski, (219) 462-3636• Tim Cole, (219) 926-8379• Ed Gutt, (219) 462-6064

Woodville Foundation is not requiring membership to answer your questions, but we are requesting it. To become a member, call one of the three above individuals.

The final consideration each Liberty Township resident needs to make:

The US-6 corridor is too valuable commercially to be ignored – it will become the heavy interest of either Chesterton or Valparaiso, who will, undoubtedly, develop an economic zone in our area, but with revenues benefitting those municipalities, not Liberty Township.

Projects that a TIF in Liberty Twp. can be used for:$$$$--Extension of sewer and water lines under SR 49 from hospital node to N Calumet Ave and south to US Hwy 6 and N Calumet Ave intersection.

$$--sidewalks from Liberty schools, east and west, to residential areas (Rugeville, Saddlebrook and Timberland, Fox Chase).

$$$--Extension of sewer and water lines south along Meridian to CR 700N.

$--Development of Mau-Me-Nas Hill (in Timberland Estates) into a passive, public area.

$$--Development of Brookdale Park into expansion of Liberty Rec fields and active recreational features.

$$$$--Extension of sewer and water lines under SR 49 from hospital node to N Calumet Ave and south to US Hwy 6 and N Calumet Ave intersection.

$$$--Extension of sewer and water lines south along Meridian to CR 700N.

$$--sidewalks from Liberty schools, east and west, to residential areas (Rugeville, Saddlebrook and Timberland, Fox Chase).

$$--Development of Brookdale Park into expansion of Liberty Rec fields and active recreational features.

$--Development of Mau-Me-Nas Hill (in Timberland Estates) into a passive, public area.

At Woodville Foundation’s last meeting, the previous project ideas were discussed and a vote was taken. The two projects concerning sewer and water utility extensions were by far favored.

That doesn’t mean that others can’t be considered or brought up. Project costs may vastly overwhelm the possible or realized revenue in the Incremental fund and may have to be abandoned for now. In that case, simpler, less-expensive projects will be considered. If you have an idea that isn’t already listed, you may call one of the Woodville Foundation officers listed previously and give them that idea.

Above all, keep in mind that Liberty Township wants – needs – to control its own future, and the only way to do that is to work together and work proactively.

Economy & Finance

Liberty Township TIF