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.