The Mount Vernon City Council advanced plans for economic development incentives during its meeting on May 12. These measures aim to support the development of Liberty Crossing, which includes approximately 228 multi-family units.
According to a video recording of the council meeting, the city intends to establish a New Community Authority (NCA) to finance public infrastructure through bonds. Additionally, a commercial tax increment financing (TIF) will be implemented for the multifamily segment of the development, along with a residential incentive TIF. An emergency ordinance was approved to assess the sufficiency of the petition to incorporate Liberty Crossing into the NCA. A public hearing will be necessary for this addition.
The video further reveals that the commercial TIF ordinance will undergo three readings before it can be passed. Michael Ringle from Bricker Graydon, consultants for the city, explained that this ordinance authorizes redirecting property taxes to a public infrastructure fund.
"The NCA is a new community authority that is an extra millage that the people who will buy into that community are opting into to help pay for that infrastructure," said Sam Filkins of the Knox Area Development Foundation in the video. "So instead of it going on their price tag when they buy, it's baked into the property taxes, just for the people that opt in now."
Properties within a TIF still pay property taxes; however, according to Filkins in the video, any increase in property taxes is allocated to a fund dedicated to developing the property's infrastructure. He also said that growth pays for growth and noted that schools would continue receiving revenue from property taxes for 30 years, while other government agencies would start collecting full amounts after 31 years.
