Anticipating upcoming property tax cuts, the city has decided to use redevelopment money to pay for a new fire station No. 4 on Olive Street. The Redevelopment Commission recently agreed to spend up to $3.3 million on the project out of River West Tax Increment Finance Area.
The decision comes as the city braces for an estimated $3.05 million general fund budget hit in 2020, when statewide property tax caps take full effect in St. Joseph County.
"We're all very cognizant of 2020 and what that has in store," said Brian Pawlowski, acting executive director of community investment for the city. "In a case like this, we have a pretty manageable cost in terms of a new public safety building, so we think (TIF) makes sense."
This is just the second time in recent memory the city has used TIF dollars -- which typically pay for infrastructure to support private development -- to pay for a public building.
The Redevelopment Commission agreed to pay for the city animal shelter with TIF money under former Mayor Stephen Luecke in 2010.
It also has used TIF money to make bond payments on the main police and fire stations.