He also said the city will move to narrow Washington and Jefferson boulevards downtown.Fort Wayne’s redevelopment division will forgo nearly $1.5 million in tax revenue next year because of healthy cash balances.
The redevelopment commission on Monday approved its tax increment financing plan for 2011. The plan included ending revenue from three special taxing districts while starting revenue from three newer districts.
Increment financing allows the commission to collect all property taxes on new development within certain boundaries. That money is then spent on specific projects rather than going to help finance general government or schools.
Next year, the commission won’t collect increment from its Illinois/Getz, Maysville/Stellhorn or Washington Center/Coldwater districts, which are estimated to bring in a combined $1.45 million this year.
The board’s decision means that money will help finance other governments – marginally reducing the tax burden for other property owners.
Jim Lindsay, a specialist with the division, said the cash balances in each of the taxing districts were enough to finance the known projects planned for those areas.
The three districts had a combined $4.2 million in cash, with the Maysville/Stellhorn district having the vast majority of money available.
The board will also begin collecting property taxes next year on three newer districts, but Lindsey said how much money will be collected is not yet known. That money will help pay for projects assisting Canlan Ice Sports, 3869 Ice Way; the Target shopping complex on Thomas Road; and the Sirva complex on U.S. 30 West.
Increment financing played a key part in completing the Harrison Square deal. Redevelopment Executive Director Greg Leatherman said revenue from the Jefferson Pointe taxing district – used for Harrison Square – has exceeded the city’s financial projections.
