By BRENT MARTIN
St. Joseph Post
A couple of major tax increment finance projects in St. Joseph come off the books to the benefit of the city coffers.
The city awarded TIFs, Tax Increment Financing, to finance the development of The Shoppes at the North Village and to lure Triumph Foods to town.
City Manager Bryan Carter says the end of the TIF given to the North Shoppe developer will be a big benefit to the city’s bottom line.
“That bottom-line impact for the city with the expiration of the North Shoppes TIF is that the General Fund will have nearly one-and-a-half million dollars additional money in it this year,” Carter tells host Barry Birr on the KFEQ Hotline. “When you’re looking at the other things, such as the CIP fund, the transit fund, you’re looking at $2.7 million.”
With the TIF for Triumph Foods ends, the city will receive an additional $187,000 in tax revenue, with a total from the two TIFs ending of nearly three million dollars annually.
Carter says some projects, such as the downtown hotel, might not go anywhere without tax breaks.
“That is what would justify the additional incentives. Otherwise, it’s probably not a viable project. We’ve heard from the developers that it’s not a viable project without that,” according to Carter. “The history of the hotels that have been down there would indicate that it’s not a viable project without that.”
Carter acknowledges the downtown hotel presents a tough case.
“It’s been a challenge. It’s had incentives before, but it’s really kind of the price you have to pay to have that particular amenity in that particular location.”
Carter says it is always a difficult decision to give businesses tax breaks.
“And that’s a tough thing to give up,” Carter says. “It’s tough to say, okay, we’re going to let those generated taxes become development costs, pay for development costs. But, if that’s the only way to get that development that we have up there then you really take that long view and try to identify what that future benefit’s going to be.”