Commonwealth Journal

Homepage

February 14, 2013

Downtown developers eye plan to redistribute tax revenue

Reinvested tax would be returned to projects

(Continued)

Somerset —

Officials noted that in order for the plan to work and realize public sector improvements, there must be a great deal of private investment in the TIF district.
“Most of the income in a successful TIF project comes from redirecting sales tax funds that would have otherwise gone to Frankfort,” said Farris. “Without some retail spending in the TIF district, there is no new sales tax revenue to pay for the improvements.” 
Farris said that communities respond positively to TIF set-ups when they understand the benefits. “The states often times will match the local revenue in taxes 5- or 10-to-1,” he said. “So, the sales tax is the big Kahuna, sometimes generating enough dollars to help pay, whereas the local taxes are smaller. 
“You’re really using money that’s created here in Somerset, rather than sending it to Frankfort and diverting it all over the state ... it comes right back into the area.”
Farris’ study will help the DSDC determine the feasibility of a TIF district, the possible boundaries, and how much money could be expected under certain conditions.
“First, you want to look at the tax generation that’s going on now; that creates the baseline,” said Farris. “Then you want to look at what redevelopment opportunities are, if it will fit within the statute. Also, what are the potential new revenues to come out of that? There’s excitement with the new laws passed (in Somerset) with the ‘wet/dry’ issue that there could be some more establishments open downtown. So we’re going to model that out and look at potential tax revenue sources from new entities.”
Officials expect the initial phase of the work to take three months. At that time, the DSDC will decide whether or not to proceed by the response from state and local governments, which will be asked to support the concept.
Still, the DSDC has reason to be optimistic about the future of the TIF strategy.
“I think, just at first glance, (downtown Somerset) looks ripe for redevelopment,” said Farris. “The Virginia is a central part of that but it won’t be the only part of that. I think we’ve identified a five-block area we want to look at closely and see what components will be most feasible.”

Text Only
Local News
Sheila Sears FW.jpg

Sheila Sears, a 19-year veteran of the Pulaski Circuit Court Clerk’s office, reviews some of the thousands of court records that the state plans to digitize.

Local Sports
Russell

Somerset-Pulaski 13-year-old All-Star Bryce Russell takes a cut at the ball in the local team’s 4-2 win over South Lexington on Tuesday in the opening round of the East Kentucky Babe Ruth State Tournament at Ward Correll Sports Complex.

Features
Counting Crows.JPG

Adam Duritz (left) and Counting Crows

  • Duritz: ‘I like playing festivals’

    July 3, 2014 1 Photo

  • brass band.jpg Brass band sound coming to Pulaski County

    A new sound is blowing into Somerset — and is hoping to attract some of the town’s top brass. Literally.

    May 3, 2014 1 Photo

  • Cory Paints.jpg Autistic man expresses himself through art

    Take a walk down the main hallway of the Stoner Building on the campus of Somerset Community College starting in April, and you might think you’re surrounded by a gorgeous array of storyboards for Disney Pixar films: Brightly colored animals romping about in lavish jungle scenes, the kind of thing likely to bring a smile to any child’s face.

    March 29, 2014 1 Photo

News Live
Pulaski-Southwestern basketball doubleheader


Check out more action photos at www.somerset-kentucky.smugmug.com

AP Video
Arizona Prison Chief: Execution Wasn't Botched Calif. Police Investigate Peacock Shooting Death Raw: Protesters, Soldiers Clash in West Bank Police: Doctor Who Shot Gunman 'Saved Lives' 'Modern Family' Star on Gay Athletes Coming Out MN Twins Debut Beer Vending Machine DA: Pa. Doctor Fired Back at Hospital Gunman Raw: Iowa Police Dash Cam Shows Wild Chase Obama Seeks Limits on US Company Mergers Abroad Large Family to Share NJ Lottery Winnings U.S. Flights to Israel Resume After Ban Lifted Official: Air Algerie Flight 'probably Crashed' TSA Administrator on Politics and Flight Bans Raw: National Guard Helps Battle WA Wildfires Raw: Ukraine's Donetsk Residents Flee Senators Push to End Hamas Threat in Cease-Fire A Young Victim's Premonition, Hug Before MH17 Raw: Deadly Storm Hits Virginia Campground Death Penalty Expert: 'This is a Turning Point' Raw: MH17 Victim's Bodies Arrive in Netherlands
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Stocks