Kosciusko County task force reviews 26 TIF districts as possible state property-tax changes loom
June 02, 2026 | Kosciusko County, Indiana
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The Kosciusko County Redevelopment Commission heard an update on its Redevelopment Task Force, which is reviewing all 26 tax-increment financing (TIF) allocation areas in the county to identify where increment is actually being produced and whether allocation areas should be resized so they do not all expire at once.
Dan, a task-force presenter, told the commission, "There's a total of 26—eight county and 18 city or towns," and said the group met for about an hour to organize next steps. He said Alyssa supplied a countywide list of TIFs and that staff (Melissa) will be asked for follow-up information to show which parts of allocation areas are generating increment.
Why it matters: Commissioners said staggering allocation-area sizes could reduce the risk of multiple TIFs expiring simultaneously, a condition that can complicate long-term infrastructure planning and overlapping taxing-unit finances. Members stressed that before the commission commits public funds, it should require development agreements that clearly spell out project responsibilities and who pays for what.
The task force reviewed several local development areas, including Leesburg, South Shore and Dreyfus. Dan said the commission is exploring whether some TIF allocation areas near U.S. 30 should be expanded so the Redevelopment Commission could participate if public funds are needed for highway-related development.
A technical point discussed at the meeting concerned capture rules for residential versus commercial increment. As one presenter summarized, residential TIFs and economic-development TIFs are governed differently: "If you have a residential TIF, you can't capture commercial and vice versa," the update explained, though commissioners noted mixed-use projects can often be structured so that increment capture supports both housing and commercial uses if the allocation area is defined appropriately.
Members also flagged the potential for state policy to change. The commission recounted recent House briefings suggesting legislators are exploring changes such as phasing out property-tax obligations for some homestead exemptions over multiple years. "They are exploring ways to possibly eliminate property tax at least those that hold homestead exemptions and they would phase that in over five years," the presenter said. Commissioners described such proposals as potentially material to TIF planning and said they expect to remain in a holding pattern until there is clearer legislative direction.
Commissioners spent part of the meeting reading for the record the status, budgets and fund balances of specific TIFs. Alyssa reported the CO-OPTIVE TIF (est. 2015, maturing 2040) has a 2026 approved budget of $382,000 and a fund balance of $352,817.65; the TIP area (est. 2008, maturing 2033) has an approved 2026 budget of $239,000 and a fund balance of $446,171.83. True Point expansion (est. 2013, expanded 2015) shows a fund balance of $128,137.45 and a bond balance of $913,000. The Van Buren/Maple Leaf TIF (est. 1996) is expected to expire in 2026 and had a 2026 budget of $307,000 with a fund balance of $322,717. The Etna Green TIF (est. 2024) has seen no activity; South Shore (est. 2024) has captured zero increment so far but is in early, active conversations with potential developers.
Discussion also covered annexation. Commissioners noted that if property is annexed into a municipality, county tax revenue would shift to that municipality and could affect TIF capture unless structured to preserve county interests. Members said one tactic sometimes used is structuring TIF debt or other incentives to discourage annexation where county revenue preservation is a priority.
What comes next: The task force will request additional data from staff to identify where increment is generated within allocation areas and will continue discussions with county commissioners about potential support mechanisms for local projects. The commission set a follow-up meeting and expects to return with more detailed information before making funding recommendations.
Action taken: At the start of the meeting the commission approved the minutes from its prior meeting by voice vote.
Dan, a task-force presenter, told the commission, "There's a total of 26—eight county and 18 city or towns," and said the group met for about an hour to organize next steps. He said Alyssa supplied a countywide list of TIFs and that staff (Melissa) will be asked for follow-up information to show which parts of allocation areas are generating increment.
Why it matters: Commissioners said staggering allocation-area sizes could reduce the risk of multiple TIFs expiring simultaneously, a condition that can complicate long-term infrastructure planning and overlapping taxing-unit finances. Members stressed that before the commission commits public funds, it should require development agreements that clearly spell out project responsibilities and who pays for what.
The task force reviewed several local development areas, including Leesburg, South Shore and Dreyfus. Dan said the commission is exploring whether some TIF allocation areas near U.S. 30 should be expanded so the Redevelopment Commission could participate if public funds are needed for highway-related development.
A technical point discussed at the meeting concerned capture rules for residential versus commercial increment. As one presenter summarized, residential TIFs and economic-development TIFs are governed differently: "If you have a residential TIF, you can't capture commercial and vice versa," the update explained, though commissioners noted mixed-use projects can often be structured so that increment capture supports both housing and commercial uses if the allocation area is defined appropriately.
Members also flagged the potential for state policy to change. The commission recounted recent House briefings suggesting legislators are exploring changes such as phasing out property-tax obligations for some homestead exemptions over multiple years. "They are exploring ways to possibly eliminate property tax at least those that hold homestead exemptions and they would phase that in over five years," the presenter said. Commissioners described such proposals as potentially material to TIF planning and said they expect to remain in a holding pattern until there is clearer legislative direction.
Commissioners spent part of the meeting reading for the record the status, budgets and fund balances of specific TIFs. Alyssa reported the CO-OPTIVE TIF (est. 2015, maturing 2040) has a 2026 approved budget of $382,000 and a fund balance of $352,817.65; the TIP area (est. 2008, maturing 2033) has an approved 2026 budget of $239,000 and a fund balance of $446,171.83. True Point expansion (est. 2013, expanded 2015) shows a fund balance of $128,137.45 and a bond balance of $913,000. The Van Buren/Maple Leaf TIF (est. 1996) is expected to expire in 2026 and had a 2026 budget of $307,000 with a fund balance of $322,717. The Etna Green TIF (est. 2024) has seen no activity; South Shore (est. 2024) has captured zero increment so far but is in early, active conversations with potential developers.
Discussion also covered annexation. Commissioners noted that if property is annexed into a municipality, county tax revenue would shift to that municipality and could affect TIF capture unless structured to preserve county interests. Members said one tactic sometimes used is structuring TIF debt or other incentives to discourage annexation where county revenue preservation is a priority.
What comes next: The task force will request additional data from staff to identify where increment is generated within allocation areas and will continue discussions with county commissioners about potential support mechanisms for local projects. The commission set a follow-up meeting and expects to return with more detailed information before making funding recommendations.
Action taken: At the start of the meeting the commission approved the minutes from its prior meeting by voice vote.
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