- This meeting is for the Redevelopment Commission to receive information on the Hopewell- Recording in
- progress. Residential TIF and the Summit District Residential TIFs. And so we'll let the record reflect
- that our president of the Redevelopment Commission, Deborah Meyerson,
- present this evening. We don't have a quorum, but that's okay because we're here to get information
- from the public and the underlying taxing authorities. We have properly noticed this meeting.
- The neighborhood associations near each of these TIF areas have been notified as well as the other underlying
- taxing authorities. So we appreciate you coming.
- And I'll start with talking just a little bit about residential TIFs versus commercial TIFs. Okay, there
- it is. So the TIF is called tax increment financing. And this occurs in TIF districts. And I'll get
- to a point in a minute where I'll explain that a little bit better. But the statutory authority behind
- the Redevelopment Commission and TIF districts and tax increment financing is found in Indiana Code
- 36-7-14, and also the Bloomington Municipal Code, which is 2.18. We currently have commercial TIFs,
- and one, a spider TIF, they call it. The consolidated TIF, what you see on the screen are the
- different TIFs that were put together to form one consolidated TIF. That was done because some of the
- districts would receive little TIF funding, and so projects weren't able to be done, so you
- had to consolidate them to actually start getting some redevelopment going. There's also an individual
- TIF at Kinser and Pro Road, some call it Prow.
- grew up calling it pro my grandfather's farm was on there okay this is a map that shows the consolidated
- TIF district and the I believe I'm colorblind the one at the very top I think that may be green is the
- Kinser Pike pro road one I'm sorry
- Yes, it is not contiguous, and that's why it could not be combined with the others. This is what's called
- the meridium tiff. It follows the fiber network, and so that's why they kind of call it a spider tiff,
- because it's not clumps. It follows the lines, but we also have that. Okay, so why do we have
- the Redevelopment Commission?
- It's, we have it because we need some way to spur good development. We need to take care of areas that
- have been blighted or that are underdeveloped and to try to support that economic growth. These two
- tips that we'll talk about tonight really go to help improve housing
- And in order to improve the housing that we have, we need infrastructure. And many times for areas to
- develop, the most expensive part of development is the infrastructure. And so it's difficult for the
- development to happen because of all the initial outlay of funds that's necessary for these.
- It can also be used to address environmental issues. Other parts of the Hopewell project, we've been
- able to do a lot for the environment in that sector. And this tries to help facilitate that private
- sector investment. For instance, if we can get some infrastructure in, then we have the opportunity
- to develop the actual homes or units that would be contiguous to that.
- We're really trying in both of these projects to preserve or enhance the community character, and we
- will discuss each of the two here in a few minutes. TIFF is a type of financing that's used, and let's
- go ahead and just skip to the chart. There we go. To me, this is the best
- way to think of TIFFs. And every TIFF meeting has this diagram. And so what you have down at the bottom
- of the drawing there, the green area, that's what the assessed value would be right now. And that's
- where it would stay, but for the redevelopment commission putting
- funds, putting effort into the growth and redevelopment, economic development of those areas. So what
- happens is that green part continues to go to all the taxing authorities that get it right now. But
- that part above it in the grayish area, that is the incremental increase that you have over the base.
- And for that wedge there, that
- is what the RDC funds would capture. And that's the funds that they can use to promote the economic
- development, to promote, and they can promote it in various ways. When it comes to residential TIFs,
- many times it has to do with, again, infrastructure needs. And they can last for a certain number of
- years. Residential TIFs can only last 20 years.
- sorry got rather can last 20 years at a maximum and the commercial tips or the non residential tips
- would could last 25 years in the clock starts on them when the first debt becomes due and payable on
- whatever project. So for instance because there's going to be this incremental capture of funds.
- you can issue bonds early that will be paid back by that increment. And so that gives you the money
- upfront to do these infrastructure needs or the other things, the environmental needs, whatever it may
- be that will help spur the economic development. And those, the 20 year and 25 year are maximum from
- when that time, the clock starts. So the TIF may actually last
- a little bit longer, but that's fine because we go by that clock. And then the great news for the other
- taxing authorities is once this is over and the economic development has occurred, now that red part
- on the right, that is all that's going to go to the underlying taxing authorities now. So they get a
- large increase
- that would not have happened had it not been for the Redevelopment Commission working hard with the
- TIF funds to help spur the economic development. So again, that is the key to how a TIF works. TIFs
- are complicated. They can be difficult to understand. So we're happy to answer questions about that.
- But again, this drawing is pretty much the best way to understand how this works. So I believe next
- we're Anna Gillian Hansen. Oh, by the way, I didn't introduce myself. I'm Dana Kerr.
- I am an attorney here with the city of Bloomington and I'm assigned to work with the redevelopment
- commission. I have a lot of experience working with redevelopment commissions. I've been on one for
- a number of years in the past. I've represented them at another location as well. So I'm really familiar
- with them and really appreciate the hard work that they do. But so I'll turn it over to Ann Achille
- Hanson. She is the executive director for
- the Redevelopment Commission and the director of our hand department. Thank you. So the purpose of the
- Hopewell South planned unit development which we are currently trying to we're going to plan commission
- on Monday for for a second hearing.
- is to implement a coordinated plan for redevelopment of approximately 6.3 acres, which consists of the
- former IU Health Hospital site known as Hopewell South, which consists of blocks eight, nine, and 10.
- The project is designed as a pilot project to test zoning and subdivision reforms that, if successful,
- may later inform citywide UDO amendments. By restoring the historic street grid, introducing small housing
- types, and allowing alley and trail frontages, the PUD fosters a more walkable, fine-grained,
- and human-scaled urban pattern than what current standards permit under current zoning.
- The project's overall aim is to deliver attainable home ownership opportunities. The requested PUD will
- reduce the average home price by more than 30% and provide 70% more total homes that can be built by
- right under existing R4 zoning. The homes allowed under the proposed PUD will range in price from 90,000
- for starter cottages up to 650,000 for larger homes.
- The average home price in the neighborhood will be around 270,000 compared to an average price of over
- 425,000 under current R4 zoning constraints. Proposed changes will allow smaller, more efficient lots
- and flexible frontage and increase the total number of homes. Approximately 98 units are being shown
- on this particular site plan. Small attainable one bedroom houses are highly in demand by Bloomington's
- large number of single person households.
- Yet the lot cost for over 4000 square foot lot cannot be supported by this small desirable home. The
- proposed changes both reduce the cost per home for land and infrastructure and also provides a more
- economically sustainable neighborhood.
- for the city more compact lots with small homes provide a higher tax value per acre more working residents
- per block with the same cost to provide infrastructure maintenance. The higher number of homes also
- better support the intended commercial and mixed use development in the surrounding Hopewell blocks
- the PUD enable small lots.
- reduce setbacks, coverage limits, and legal recognition of alleys, trails, and parks as frontage. These
- modifications are necessary to achieve the city's attainable housing objectives and provide diverse
- ownership housing within walking distance of downtown.
- So as you can see here the former Convalescent Center also known as 714 South Roger Street is to the
- east The future there is a little bit up in the air, but for blocks 9 and 10. We are showing 98 units
- with approximately 53 lots I wanted to explain one other thing
- When you create a TIF district, as far as we carve out where the funds actually come from, since we
- aren't sure.
- Thank you. Since we're not sure about the old convalescent center, we've got some ideas, but we're not
- sure. The allocation area that we're doing only covers parcel A. So that's blocks nine and 10 that you
- see there. So that'll be the residential TIF area. We'll make that other parcel
- part of the parcel be part of the economic development area. But once we decide how that might be used,
- then we would decide how to how we might make that an allocation area. Um, so again, so you have the
- economic development area, which is the entire part of it. And then for this particular project for
- this particular residential tiff, it would be parcel a blocks nine and 10.
- And well, this is up before we have introduced our next speaker. This is the Summit District neighborhood.
- And so that, what you see, the entire area would be the economic development area. But at this point,
- number one, in the green, Shasta Meadow, that would be the first housing
- TIF area, the first housing allocation area. So they would all be part of the EDA, but we're only building
- the allocation as this develops out. And so we're starting with number one there, the Shasta Meadows.
- I'd like to introduce Mr. Vensel, who will be speaking to Summit District.
- Excuse me, Travis Fensel with Sullivan Development and Summit District. This is an opportunity for us
- to utilize this tool to get additional infrastructure that's necessary for this area to develop, to
- help spur that development, to bring the project into compliance with the PUD requirements. As stated,
- there's five neighborhoods. All of those will have predominantly residential.
- The residential will be in all forms of residential from single-family detached owner occupied homes
- to single-family detached rental homes to multifamily attached Rentals and owner occupancy there will
- be some commercial it will be captured as well as
- So we believe this is a appropriate way to move forward with funding for Much of the infrastructure
- that is needed and we're happy to answer any additional questions That may come from anyone that's attending
- today's meeting. Thank you I'm sorry this slide is to show
- some of the differences that you have between the residential TIF and the commercial TIF. I'll just
- let you look through those. They really are what's needed in each of the different types of TIFs, whether
- they be residential or commercial. This shows you what types of projects that you might see.
- and online is the EDA plan with the residential housing development plan and it is on the RDC website
- and those are the draft plans. They're marked draft except for the drawings and we're here tonight to
- get input from the public as to
- what they think those plans should include, what they think of the projects, what their input that they
- want to have. The statute requires that we have this meeting. In a normal commercial TIF, this meeting
- is not done. Residential TIFs are, this is the main difference procedurally for that. But again, it's
- to get public input. We want to hear from you.
- I know that some communities decide to pass their declaratory resolution at the end of this meeting,
- but we don't want to do that. We want to get as much input as we can, so we will not pass that. That'll
- come at the next regular RDC meeting, which could possibly be the 23rd, February 23rd, if we're
- working on schedules and things like that, you know, this time of year. But if it's not then, then it
- would be the first meeting in March that we would bring this up. So you've got some time for those who
- see this later. You've got some time to give us some input. Let us know what your thoughts are on the
- plans. And again, this is for the development of the TIF districts. It's not for
- you know, trying to decide the ends and outs of each of the projects. But it's just trying to set up
- these TIFs so that we can, again, maybe leverage them to get funds to go towards things like infrastructure.
- So we have anybody who would like to speak on it, please come up and state your name
- My name is Deborah Meyerson. I am excited to see the residential TIFs being proposed for both the Summit
- District and for the Hopewell South PUD, so thank you for sharing that. I do serve as president of the
- RDC, and so look forward to seeing that on our February 23rd meeting. I was wondering if you could describe
- a little further an example of what the residential TIF could do. I'm more familiar with the Hopewell
- South at this point, but for either district in terms of what specifically it will deliver different,
- I know you had your side-by-side chart up there. I hope you'll reflip the headers, but in any case,
- just kind of translate that slide into what we might be able to see on the ground. Thank you. What types
- of projects would be the design of infrastructure, the design of roads and utilities that could go into
- it? It could be the actual construction of
- roads and sidewalks and the infrastructure. Again, infrastructure is very expensive and it is the limiting
- factor in development. And so what the intent is at this time is that we would use those funds to support
- that infrastructure. What you would see in the Hopewell TIF is that there would be
- There's a section of Fairview Street that would be constructed. There is a section of Jackson Street
- that would be constructed. There are some individual lanes as well, and there are green space areas.
- For the rest of the Hopewell area, what you can already see is the park that they have put in near the
- Kroger's there and that infrastructure, they're putting in infrastructure part of Jackson Street. So
- that's similar things that they're already doing in a commercial TIF. Residential TIFs are different
- because they're excluded from all other kinds of TIFs. So if you have a mixture of residential properties
- along with commercial properties,
- In a TIF area that's commercial, you only capture what's in the non-residential. And there's a definition
- of residential I get into, but these allow you to develop neighborhoods because you're putting the money
- in the infrastructure for housing. And the great thing about Hopewell South is that, and again, that's
- the one I'm most familiar with too, but
- you will have a larger number of units in a smaller area. So that means your infrastructure, it's less
- infrastructure needed to serve that many units. And so that is one major reason to do the PUD is to
- the plan urban development is to get the number of units higher
- and the cost of infrastructure lower. So, again, sidewalks, parks, roads, utilities, water,
- sewer, stormwater, all of that type of infrastructure can be paid for with TIF dollars as well as their
- design and, you know, having
- consultants help design the overall project. All of those costs are legitimate costs to to help the
- project. Does that help?
- Chang from Reedy Financial who may be able to better address that question the biggest differences between
- Residential and commercial tips since this is Bloomington's first set of residential tips Justin, would
- you like to address that? It's okay. Yes, so
- When we look at a, sorry, I'm trying to look at the audience at the same time, but when we look at a
- residential and commercial TIF, the main differences is what Dana mentioned earlier. It's the lifespan
- of the TIFs and what is capturable, right? For residential TIF, we can't capture 1%, whereas a normal
- commercial TIF, we cannot capture that 1%.
- The logistics side of it, that's the main difference. Now for what the TIF dollars could be spent on,
- they're very similar. But in order for a lot of RDCs, they want to use the dollars coming from residential
- TIF to benefit the, obviously all TIFs are to benefit the residents, but it's to specifically benefit
- the residents within that TIF. So like Dana said, a lot of road infrastructure will benefit that TIF area.
- the residents there could have better access as compared to a commercial TIF. Yes, the TIF dollars are
- to benefit the residents there, but they might be used for industrial reasons as well, whereas
- the residential TIFs is for the people. So the parks are a big one, utilities are a big one, and roads
- are big projects. I'd like to add that, too.
- You know, when you're in it all the time, you think about this redevelopment and what it means, but
- it means more than just this one neighborhood. It impacts the entire community because what we're getting
- with these projects is affordable housing for our workforce. So the benefits are far wider than just
- in these neighborhoods.
- They are for the entire community. Again, places for our workers to live, places where companies can
- come in and have house inventory for people to live in. So it affects a much greater area than just
- that neighborhood. So I thought I'd better add that point.
- Is there anyone in council chambers that would like to ask any questions or provide input? Mike and
- state your name. Hi Dave Askins with the B Square Bulletin. This is a question not input So both of
- these areas that are proposed for residential TIF are already in this geographic area of the consolidated TIF and
- as I understand it. Is that wrong? Sorry, thanks for turning my mic on. The Hopewell South TIF is in
- part of the consolidated TIF. The Summit District is a combination of parts that are in the consolidated
- TIF and parts that are in no TIF.
- It's a big, open expanse. And so there's a part of it that's not in a TIF yet, but by creating the economic
- development area. So these actually, it's a good point, good question, these actually pull them out
- of the consolidated TIF to the extent they're in the consolidated TIF and puts them in their own TIF
- area, development area.
- But my question then might apply more to the Hopewell South situation as opposed to the summit district.
- But the question is once the residential TIF is established assuming that it does get established does
- that prevent TIF funds that have been accumulated through the consolidated TIF from being spent on the
- areas that are now residential TIF. So
- Do you understand what I mean? If I owned the land, I might be interested in sort of timing the establishment
- of the residential TIF so that as much investment could be made off of the consolidated TIF dollars
- that have already been captured in this area so that those, you know, we maximize that investment and
- then establish the residential TIF.
- I mean, if there is some interplay. I don't know. That's the nature of my question. Thanks. That's a
- great question. Thank you for asking. I'll try and then I'll let Justin follow up. The TIF district
- funds that are saved from the funds from the consolidated TIF can be used in projects that benefit the
- TIF. And so you could use consolidated funds
- in the residential TIF which we're actually using consolidated funds now to pay for the design that
- you saw here and such. So we've so you can continue to do that as long as it's a benefit to the consolidated
- TIF. Yeah you want. Earlier Dana mentioned
- there's an EDA and a TIF allocation area, and I know that's a lot of different areas that we have to
- remember, but essentially an EDA is where it's a larger portion of the TIF allocation areas, and it
- is where you can spend the money on. So if you draw like a big circle,
- around Bloomington, that could be the EDA, and that's where TIF dollars could be spent on. And then
- within that bigger circle, you draw little smaller circles, like a pizza with pepperoni in it. Each
- smaller pepperoni will be a TIF allocation area. So what we're doing here is creating a smaller pepperoni
- within that big pizza, and even though the TIF allocation area can only be,
- Even though tiff revenues is only collected on parcels within the pepperoni Those tiff revenues could
- be spent on their entire pizza, which is the consolidated economic development area I hope that clarifies
- your question a little bit Council chambers are online that would like to ask any questions or provide input
- If there's no one else that has any questions, I'll stay around for a while. If you wanna ask me something
- outside of the camera range, I'd be happy to help. We are really excited about this project and we appreciate
- your interest in coming this evening. And so I guess we will adjourn this meeting. Oh, wait, go ahead.
- Oh, okay, sure, very good.
- So what, and our timeline may shift a little bit, so I won't say dates, but the process is, is that
- when you're doing a residential TIF, the first thing is this meeting. You notice this meeting, again,
- to the neighborhoods that are nearby. Technically, it would only have to be the actual neighborhoods
- in there, but we wanted to make sure we included as many as possible in them. And so we did surround,
- surrounding neighborhoods and the underlying taxing authorities like transit and county and city and
- library and schools and noticed all of them as well. So getting the notice out and having this meeting
- to try to get information on it. And again, we would like you to look at the plans online and
- give us any information, anything you would like us to know in developing those. The next step is that
- this would go to the RDC, to a regular meeting, and there would be a declaratory resolution. That's
- technically the big start of what's going on. This is getting the information together that we'll put
- in the plan that we'll take to
- the RDC. So after the RDC meets and if they pass the declaratory resolution, the next step is for the
- project to go to the plan commission. And the plan commission would have it just at a regular meeting
- and neither at the first RDC meeting for the declaratory resolution nor is the
- Planning Commission meeting, they're not hearings. They're just done in regular meetings. And then at
- a Common Council regular meeting, they would consider it as well. And then after you get your approvals
- from the Planning Commission and the Common Council, then it comes back to the RDC, the Redevelopment
- Commission, and the Redevelopment Commission will hold an actual public hearing on it.
- Um, so that is a great time for, for people to, to, uh, give input as well. Um, and after the hearing,
- they, if they decide to, they can pass, it's called a confirmatory resolution that confirms the declaration
- that they had made before. And then that's the, uh, then after that it gets recorded and that's, that's
- pretty much the process.
- So it's several steps. We're hoping maybe to be done in April, maybe May. Like I said, it depends on
- schedules with and when items have to be at each of the entities to make it onto their packet. But the
- hope is to get it established pretty soon and look to the future of these two neighborhoods.
- Okay. You can find copies of our plan at bloomington.in.gov, backslash boards, backslash redevelopment.
- If you have any questions, feel free to email me at Anna, A-N-N-A, dot Killian, K-I-L-L-I-O-N, Hanson,
- H-A-N-S-O-N, at bloomington.in.gov. Dana? Okay.
- welcome to email me as well. It's danadana.kerr, k-e-r-r, at bloomington.in.gov. Again, we appreciate
- you all being here tonight and we will hereby close this public meeting. Thank you very much.