The idea is that a percentage of property tax under the agreement would go towards reimbursing certain projects. Service payments would be made by impacted property owners in lieu of increased property taxes as a result of new development.
The creation of Tax Incremental Financing Incentive districts related to the Sycamore Ridge development is similar to what was previously approved for Bridgewater, which aims to bring 226 homes to the area.
Both developments are located on property annexed to the city of Springfield from Springfield Twp. Those living in those annexed areas would be residents of both the city and township.
The TIF agreements for both developments will stay new property tax collections by local government on those new homes for a period of 30 years. It will not impact property tax already collected on those properties before the increase in property value due to development.
The TIFs make it so a quarter of the property tax marked for local school districts will go to Clark-Shawnee Local Schools for up to 10 years. After that, the district would receive the full amount of those taxes. The new developments are located in that school district.
But the TIF with Sycamore Ridge differs from the one with Bridgewater in that it will create what is known as a New Community Authority, and generate an additional 4 mills of property tax.
As a result, 2 mills will go to Clark-Shawnee and the other 2 will go to Springfield Twp., during the first 10 years of the TIF agreement.
“We have tried to work to find ways to help offset some of the losses (the district) experienced through the TIF period by introducing this new community authority,” Springfield City Manager Bryan Heck has said.
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