The final paperwork is done to establish Portage’s first five residential TIF districts.
The Redevelopment Commission unanimously voted to create these tax increment financing districts for Rivertrace, Providence at Farmington, Bauer Farm, Sandy Trail and Swanson Trails.
Together, they’re expected to bring the city 589 new single-family homes, 478 paired patio homes, 38 townhomes and 101 cottage homes.
Something different for these TIF districts is that the developers have agreed to make annual payments totaling about $622,000 a year until the newly built homes show up on the tax rolls, ultimately generating about that much annually in new revenue for the Redevelopment Commission.
Among other things, the money will go toward public safety needs for the city.
“One of the challenges that you have when you have a new neighborhood in the city is it adds expense” to provide city services, Mayor Austin Bonta said. For utilities and trash pickup, homeowners will pay a user fee. Public safety, however, is supported by property taxes.
Rivertrace is the smallest of the subdivisions, both in acreage and number of homes.
It’s nearly 33 acres south of Lute Road between Airport and Willowcreek roads. Olthoff Homes is building 90 cottage homes and 38 townhomes.
Providence at Farmington, developed by Providence Real Estate, will include 128 single-family homes, 101 cottage homes and 80 duplexes on its 120 acres at the northwest corner of Airport Road and County Road 700 North.
Bauer Farm, developed by Lotton Development, is nearly 53 acres on the city’s southwest side, south of County Road 700 N and east of County Road 700 W. It will bring 236 single-family homes.
Sandy Trail, also developed by Lotton Development, is on nearly 53 acres south of U.S. 6 and west of Swanson Road. Lotton plans 308 paired patio homes.
Swanson Trails is more than 80 acres south of U.S. 6, west of Swanson Road. Lennar Homes plans 225 single-family homes, with a total private investment of $100 million to $110 million.
Together, these five subdivisions are expected to bring an estimated 3,062 new residents to Northwest Indiana’s third-largest city, behind Hammond and Gary.
A resident calling himself Good Citizen spoke at public hearings for the new TIF districts.
“I like public meetings. Just like a good TV show, there’s drama, there’s arguments on both sides,” he said.
Good Citizen asked if the city is looking at corporate sponsorships like asking auto parts company NAPA to offer free repairs for police cars. “We want those vehicles to be available to patrol Sandy Trails,” he said.
The TIF is a sort of corporate sponsorship, Bonta said. The city is also looking at opportunities for public-private partnerships, he said.
The TIF districts expire Nov. 6, 2045, 20 years from the date they were created.
“I’ll just put it in my calendar with an alarm,” Bonta said.
“Mayor, it will be here before you know it,” Redevelopment Director Dan Botich said.
Doug Ross is a freelance reporter for the Post-Tribune.
