Hanover trustee warns St. John TIFs could reduce school and township revenues

Kevin Toth, introduced by the presiding officer and identifying himself as Hanover township trustee, told the St. John Redevelopment Commission on March 25 that residential tax-increment financing districts reduce revenue available to overlapping taxing bodies and leave townships and schools to provide services without added tax base.

"I just wanna know that you guys understand what this is doing to all the other taxing entities around you when you do this," Toth said, pressing the commission for numbers on estimated school revenue losses and describing a concern that township services could be strained if new homeowners later need assistance while the township receives no tax revenue from the captured area.

Toth said he had asked similar questions at a previous meeting and had not received concrete numbers; he recalled being told at that earlier meeting that the commission would "give them $50,000," and he said that amount would likely be small compared with potential revenue losses for school districts. He also raised a separate policy concern: "They said that if they go rate based, the TIF districts are dead," referring to a possible statewide shift to a rate-based tax system and asking whether the commission had considered that contingency.

Commission discussion recorded during the meeting said the projects had been vetted; a commissioner stated that Hanover School Corporation would receive 10% back of revenue generated in the TIF area and referenced consultant work by Baker Tilly used in revenue considerations. The transcript does not include a detailed, quantified reconciliation of projected school or township revenue losses at the meeting.

Also during public comment, Matt Rohr, president of the Mill Creek Master HOA, expressed support for the commission’s commercial development resolutions at the Parrish site, saying recent residential development had been "a good neighbor" and urging approval.

The commission proceeded to open and close public hearings with no additional public comments and then voted on the listed resolutions. The meeting record does not show further analysis of the trustee’s request for detailed estimates; follow-up from staff or a future fiscal impact report would be needed to answer the trustee’s questions.

The commission adjourned after completing the agenda.