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ELKINS -- Elkins City Clerk Jessica Sutton addressed the Rotary Club of Elkins regarding the City's pending TIF (Tax Increment Financing) application.
In early November a presentation about the TIF plan was given to the Leadership Randolph County cohort and other community stakeholders, and then replicated that same evening for City Council and the public.
In preparation of the presentation, a press release was issued by the city's External Affairs office and published in The Inter-Mountain as a means to provide information about the process and the city's intent.
"For me, this was a real learning experience. I had some sense of what a TIF was, but I learned a lot through this process and I will do my best to relay that knowledge," Sutton told the Rotary Club.
Working alongside Sutton on the TIF project are Dave Clark of Woodlands Development, Robbie Morris of the Randolph County Development Authority, attorney Josh Jarrell of the law firm of Spilman, Thomas & Battle, and investment banker Joe Nassif, who all bring a level of expertise in their field.
"The timing is good now because of the development that's already happening in the area and the projects the city and community have been looking at," added Sutton.
A TIF is a district meant to capture increased tax revenues and then funnel them to particular projects. It's not an additional tax, or an increased tax rate; rather, it captures increased revenue in the district to help finance projects within the district.
Prior to May 2018, class III cities, such as Elkins, were not permitted to create TIF Districts. Only larger cities (class I and II) and counties were allowed to participate.
"The intent is to create this economic development tool that will allow us to funnel these taxes back into what are almost entirely public projects," Sutton said. "It can be used for some private investment but there must be a public benefit tied to it."
Projects included in a TIF must pass the "but for" test, which means they currently do not have an identified funding source and, but for the TIF, they cannot be completed. However, this doesn't preclude additional or alternative funding sources from being pursued for these projects.
TIF monies can be used to fund items such as infrastructure, streetscapes, land acquisition, renovation, demolition, site work and similar investments, all of which need to show public benefit. When the application is submitted, projects must be identified in a general way including the location, the project outline, and its estimated cost. After submission, the West Virginia Economic Development Office evaluates and approves or denies applications within 60 days.
The geographic boundaries of the Elkins TIF include the downtown area, the railyard, the new industrial park recently purchased by the Randolph County Development Authority from the Odd Fellows on Georgetown Road and property along Randolph Avenue and Eleventh Street.
All property within the TIF District must be adjacent, not separate parcels. Large residential areas were not included in the application nor were areas with commercial properties that could potentially decrease in value over time.
Per West Virginia State Code, the city is the applicant, since all of the parcels in the TIF District fall within the Elkins city limits.
"All of the leveeing bodies (the State of West Virginia, the Randolph County Commission and the Randolph County Board of Education) were notified of the application. Those bodies have the opportunity to respond but none can prevent the City from making the application. We did not hear back from any of those bodies, so we continued down this course," added Sutton.
Next steps include working with the Randolph County assessor to establish the base assessed valued of the included properties. All parcels and properties within the TIF District must be identified. Personal property, with the exception of personal property that's related to the operation of a business, is not included. Excess levies or bond levies are not included in the revenue capture nor is the county school board adversely affected by the creation of a TIF, officials said.
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Visit www.Rotary.org to learn more about Rotary International, visit the club's Facebook page -- Rotary Club of Elkins -- or contact club president Kristie Vandevander at k_ware@yahoo.com for more information about the Rotary Club of Elkins.