The Somerset-Pulaski Economic Development Authority (SPEDA) has its sights set on several upcoming developments, not the least of which is a plan to unveil in the near future designating one or more areas within Pulaski as Tax Increment Financing (TIF) Districts.
SPEDA CEO and President Chris Girdler said that implementing a TIF District would be a tool to develop either undeveloped land or “blighted” areas that need redeveloping.
“That’s just another carrot we’ll be able to dangle for potential investors and developers,” Girdler said at a Thursday SPEDA board meeting.
“I anticipate that we, as an organization, will have that ready to present to the community sometime in the month of March,” he said.
Back in November, the SPEDA board learned about TIF Districts from northern Kentucky attorney Jim Parsons.
He explained to the board the basics of how TIF Districts operate and what it would mean for the people who work and live in those districts.
“If you’re a tax payer within the TIF District, you’ll never know you’re in the district because you’ll pay the taxes in exactly the same way,” he said.
He went on to say that the designation was for economic purposes only. It is not a change in the zoning of a property.
“It doesn’t create any restrictions on property. It doesn’t increase taxes within the TIF district,” he explained, with one exception. TIF districting allows a provision that the creating government can set a special payroll tax rate up to a total of 2 percent, meaning they can increase the current payroll tax from whatever the current rate is, say 1 percent, up to two percent. The extra revenue generated by that increase would be added to the TIF funding.
Governments can choose not to increase payroll tax.
Creating a TIF District allows the government to pledge revenues that will go towards developing that specific area. The baseline tax revenues, the amount being collected at the time the TIF District is created, are collected and used in the same way as they always have been.
All revenue collected above that baseline amount is set aside in a special fund which can only go towards development within the TIF District.
“As development occurs over time, it’s the increase in taxes generated what you will utilize to promote the element of that particular project,” Parsons said.
Also at Thursday’s meeting, Girdler announced that the Kentucky Career Center on East Mt. Vernon Street would host a hiring event for Cincinnati-based manufacturing company Hollaender.
The event will be on February 17, and the company plans to begin operations on March 4.
“They’re very excited to be here, and they anticipate having 10 full time employees within the first few months of operation,” Girdler said. The starting salary is expected to be $15 per hour.
Hollaender announced plans to set up shop in Pulaski back in October. It is expected to create a total of 16 jobs.
The company will be investing more than $660,000. It produces a line of Speed-Rail® mechanical fittings, which are used to create strong structures such as railings, racks, fencing and more.
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