Portage Township President Questions Impact of Proposed TIF Districts on Local Revenue

During the recent Portage City Council meeting on April 1, 2025, significant concerns were raised regarding two proposed residential Tax Increment Financing (TIF) districts, Bauer Farms and Sandy Trails. These developments are part of a broader plan that includes five TIF districts, all of which will require council approval.

A representative from the Portage Township Advisory Board voiced strong objections, emphasizing the potential negative impact on local tax revenues. The speaker highlighted that the township relies on property taxes to fund essential services, including support for financially struggling residents, park maintenance, and community centers. With no alternative revenue sources available, the loss of tax income from these TIF districts poses a serious threat to the township's financial stability.

The speaker also questioned the assurances provided by Mayor Bonta regarding future grants to offset the financial losses. While the mayor suggested that these grants could potentially yield more funds than the township would receive through property taxes, the speaker expressed skepticism about the feasibility of this claim. Concerns were raised about the lack of binding agreements to guarantee ongoing funding over the proposed 20-year lifespan of the TIF districts.

Additionally, the speaker challenged the legality of the TIF proposals under Indiana state law, which stipulates that TIF funding should only be used for infrastructure that promotes development that would not occur without it. Given that some homes in Bauer Farms are already occupied and that Sandy Trails has been in development for years, the speaker questioned whether these projects truly meet the "but for" clause required for TIF approval.

The discussions at the meeting underscored the tension between the city's development goals and the financial implications for overlapping taxing units like the Portage Township. As the council prepares to vote on these proposals, the concerns raised highlight the need for careful consideration of both the legal requirements and the broader impact on community services. The outcome of this decision could significantly affect the township's ability to provide essential services in the future.