Looking to fund future infrastructure projects, the Seymour Redevelopment Commission has taken the first step in creating a new tax increment finance district on the city’s south side.
The TIF district will encompass Silgan Plastics’ operations at 3779 N. County Road 850E and allow the city to capture tax money from new industrial development or increased property values in the district. That money will go to fund improvements and economic development in the area.
Seymour Mayor Matt Nicholson said the TIF district is expected to generate just more than $3 million in 25 years with half going to the city and the other half going back to Silgan as an incentive to help fund a $15 million 200,000 square-foot warehouse expansion. That project will allow the company to retain its workforce of 200 employees and create the potential need to hire more workers.
The city’s portion of TIF revenue will be earmarked as matching funds for the $4 million state grant Seymour received earlier this year to make improvements to South O’Brien Street.
The city will capture additional tax money from any future development by Silgan on its property in the next 25 years and will continue to receive tax money from the new warehouse for a long time, Nicholson said.
Revenue from the Silgan TIF district also can be used to help make improvements in the area of the Burkart Boulevard south bypass project.
“We’re establishing for the future,” he said.
The city started working with Silgan about 10 months ago on the deal.
“We’ve finally come to something that benefits both of us a little bit,” Nicholson said. “It was the best deal we could come up with for everybody involved.”
The Silgan TIF district is being set up similar to the Bushmann TIF district on the north side of the city, which helped fund construction of the Burkart Crossing apartments, Nicholson said.
Earlier this week, the redevelopment commission approved a resolution declaring the Silgan Economic Development Area and an economic development plan for the area.
It will be presented to the city council May 11 for a first reading, and a final vote will be taken May 26.
Although TIF districts can take away tax dollars from other taxing units, such as schools and libraries, Nicholson said Seymour uses a portion of its Cummins TIF district revenue to fund education initiatives through the Jackson County Education Coalition and Jackson County Learning Center. That has amounted to $584,000 since 2012, which is $340,000 more than if the TIF district wasn’t in place, Nicholson said.
“We give more back than what they would have collected on regular taxes,” he said of schools.