Plymouth Redevelopment Commission holds annual TIF Review

Last week, members of the Plymouth Redevelopment Commission held the mandatory annual Tax Increment Financing (TIF) review with representatives from Baker Tilly.

TIF is a public funding tool used by local governments for community development. The annual review allows the commission to discuss the long-term plan, the budget, and the impact on the overall taxing units.

The City of Plymouth has eight TIF areas. Each TIF captures any increase in the assessed value from the time the TIF area was created. The captured revenue is used on projects and services tied to the economic development plan.

TIF #1 — U.S. 30/Oak Road: The city's legacy area, created in 1993 and expiring June 1, 2040. Estimated annual TIF revenue for 2026 is $672,440. TIF #1 is paying the bonds for the Town Hall Renovation project, with the final payment due in February 2027. This district also contributes between $40,000 and $80,000 annually for improvements to the city's municipal waterworks, with final maturity in June 2040.

TIF #2 — East Jefferson/Central Business District, created in 2001 and amended three times, with an expiration date of June 2038. Estimated annual revenue is $379,790. Outstanding obligations in this TIF include improvements to River Park Square, which will be paid off in February 2028.

TIF #3 — U.S. 30/Pine Road was created in 2004 and expires in 2035. Estimated annual revenue for 2026 is $1,187,530. There is only one obligation from TIF #3: the Aquatic Center.

TIF #4 — South Gateway/Western Downtown Economic Development Area, established in 2016 with no expiration date because there are no obligations. Estimated annual revenue for 2026 is $109,920.

TIF #5 — Western Avenue Economic Development Area Created for Winona Building Products in 2018 and expires in 2045. This was for personal property taxes, but the company has not been paying its taxes. It was noted that there is no risk to the city in this case.

TIF #6 — Plymouth Goshen Trail EDA was established in February 2019 for the Centennial Crossings Development and expires in April 2045. Estimated revenue for 2026 is $413,480. Developer Purchase Bonds are being paid from these TIF revenues.

TIF #7 — Pretzels/Hersey Salty Snacks Building Expansion and Air Allocation Established in May 2019 and expires in 2044. Estimated annual revenue for 2026 is projected at $881,669. The revenue pays off the bond for the expansion.

TIF #8 — Water Street Townhouses/Yellow River Tap was created in 2023 and will expire in January 2049. The bond for the townhomes matures in February 2032.

Overlapping taxing units impacted by the city's TIF Districts include the county, townships, city/town, and school, library, and special taxing districts.