A number of taxing bodies were in attendance at a Monday night public hearing to hear more details on the City of Salem’s proposed new Tax Increment Financing District number four.
The district spans from near I-57 and Boone Street, south to property near I-57 and West Main and then southeast to the Marion County Fairgrounds area.
Consultant Nick Nelson says the area does meet all qualifications.
“Out of 694 total parcels, 597 of those qualify as blighted,” Nelson said. “Of the 694 parcels in total, 510 did have a building on them. 413 of those 510 qualify. We don’t have to have every parcel qualify, but at least 50 percent have to qualify and we’re at about 81 percent for the grouped parcels in this area.”
Nelson says qualification is based on the number of homes more than 35 years old, those built without planning approval, signs of deterioration or having static equalized assessed value. Of the 184 vacant parcels all qualify. 67 for formerly contained a home that has been torn down while other vacant lots have caused deterioration to adjacent property or have flooding issues.
Nelson says the TIF district will be able to make up to $65 million in public infrastructure improvements over its 23-year life. He noted another $45 million could be available to assist in private projects.
“It’s got everything from hotels to any type of commercial development. Restaurants, retail, residential projects, subdivisions,” Nelson said. “I think there’s even some light industrial. Again, this is just a wish list, it doesn’t mean we have actual projects. There are a couple projects that are in line that the city has taken some action on.”
Nelson says the city can also develop a program to assist homeowners with improvements to their property.
Salem Economic Development Director Lea Dellicarpini says she will yearly remove increased assessed valuation from residences within the zone that do not qualify for assistance and return the money to the taxing bodies.
Salem Community High School Superintendent Dr. Brad Detering raised concerns about that proposal because the consultant keeps missing deadlines to provide details which he feels should be available before the district is approved. Nelson apologized and said the information would be provided to the city by the end of the day Tuesday.
Detering also raised concerns about only Mayor Nic Farley and Councilman Frank Addison being in attendance. He says the others will be voting without the knowledge of what was said at the hearing. Farley responded that the other council members would be provided a record of what was said at the hearing. Detering discounted Farley’s open meeting concerns of having more councilmen attend since this was an advertised public hearing.
The city council is expected to vote on creation of the tax district at its Monday, July 7th meeting.
