Council gains insight on TIF planning for future development

</element><element id="paragraph-1" type="body"><![CDATA[Harrisburgers on Thursday got a peek, but few details, as to what may be in the future of one area under the administration of Mayor Eric Gregg.

Bob Vancil of Incremental Strategies, a firm employed by City Council to study the possibility of adding a second Tax Incremental Finance District to the city and extending the life of the current TIF district, located in the northern end of the city extending from the old Wal-Mart area west through the long-defunct rail and roundtable area, updated council on TIF planning.

All public indications given by Vancil to the council say a recommendation will be coming to extend TIF No. 1 and to establish TIF No. 2.

A preliminary look at what is ahead was distributed to members of council, but only a glimpse was made public in carefully couched remarks by Vancil.

Nothing was directly said about TIF No. 1. However, because of its location it is the primary financing of all flood control activities taking place for the city, including the so-called "Terry Maynard pumping station" which now is under construction.

Vancil told council a major problem facing Harrisburg is the loss of people from census to census.

Remarks that followed gave a clue as to what council is considering in a new TIF district: A housing development that will serve two segments of population Vancil believes will be necessary for a halt of de-population and renewed growth. He envisions lower-cost single-family dwellings for young adults and lower-cost apartment housing for retirees.

He speculated using a TIF could allow construction of a new home at a 20 to 25 percent reduction in cost to a homeowner. And he said an investment in elderly housing could allow reasonable rentals for retirees.

While the concept was only briefly outlined through reference to the two housing needs, one of several conclusions could be that council is considering a TIF district that would subsidize developers and builders, achieving the goals Vancil discussed.

He told council loss of population could have a negative impact on the city.

"We want to make it a plus and not a minus," he said.

Vancil brought other news to the council.

He said the current TIF district can help solve a problem the county assessor and treasurer are having calculating TIFF taxing. He indicated the district, by law, can pay for computer programs that will assist the county.

He also has calculated figures that show Harrisburg is far from being a city near death.

While city budgets in recent years have been in deficit condition, the cause apparently is not lower shares of state sales tax.

Harrisburg in 2010 collected $1.9 million as its share of sales tax, a number that has been on the increase since 2003 when $1.6 million was the share.

The year 2003 had exhibited a $33,000 drop from the previous year.

General merchandising is the leader in tax collections, followed by food, his report indicated.

"You are a regional shopping center," Vancil told council, and Harrisburg is far above the average in per capita receipts.

Statewide, the per capita receipts of the 1 percent share of sales tax was $175, he said. The Harrisburg share, in 2010, was $218.

Whatever course council is headed with the TIF question, a movement thrust forward vigorously early in Gregg's administration, will be rapidly decided.

Following Thursday's meeting, Gregg said the preliminary time frame for completion and passage of a plan is the end of the year.