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TO APPROVE AN ENTERPRISE ZONE INVESTMENT DEDUCTION (EZID) IN THE DOWNTOWN TAX INCREMENT FINANCING (TIF) DISTRICT – Re: Springhill Suites (501 North College Avenue)

This resolution approves an Enterprise Zone Investment Deduction (EZID) for Urban Hospitality 1, LLC located at 501 North College Avenue. The EZID allows a property tax deduction for a qualified investment within an Urban Enterprise Zone (I.C. 6-1.1-45). In most cases, this deduction (which is similar to tax abatement) is automatic with the proper and timely application to the County Auditor. However, effective July 2008, when the investment is in an allocation area defined by IC 12-19-1.5-1 (TIF District), the deduction must be approved by the area’s legislative body. Therefore, any EZID in one of the City’s TIF allocation areas must be approved by the Common Council. Basic information about the EZID is: 1) EZID is defined as the property tax deduction available from the increased value of an Enterprise Zone business property due to real and personal property investment by the business. 2) The deduction equals the difference between the assessed property value following the qualified investment and the assessed property value of a base year (the year preceding the qualified investment). 3) The amount of the deduction (100%) will be the same for each year (is non-graduated). 4) The added valuation may be deducted for up to 10 years and can extend past the expiration of the Enterprise Zone (Bloomington’s zone designation will expire in March 2017). 5) 20% of the tax savings is paid to the Bloomington Urban Enterprise Association and effective with Ordinance 13-04, an additional 9% of the tax savings is paid to the Bloomington Redevelopment Commission.

Amends CodeNo
Committee 2013-04-10 2 (Sandberg, Spechler) - 0 - 6 (Ruff, Granger, Mayer, Neher, Rollo, Volan)
Final 2013-05-08 Passed 7-1 (Rollo) (Ruff absent)
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