Best Tax Increment Financing Lawyers in Lafayette

About Tax Increment Financing Law in Lafayette, United States

Tax Increment Financing, often called TIF, is a public finance tool used in Lafayette, Indiana to fund improvements that support redevelopment and economic development. Under Indiana law, when the City establishes a TIF allocation area, the property tax revenue generated by the increase in assessed value after the area is created is captured as the increment. That increment can be used to pay for eligible public projects or to secure bonds or developer reimbursements tied to those projects. The Lafayette Redevelopment Commission administers local TIF districts and works with the City Council, plan commission, and county officials to create, manage, and report on these areas.

TIF dollars are commonly used for public infrastructure such as roads, sidewalks, utilities, drainage, site preparation, environmental remediation, land acquisition for public purposes, parking facilities, and other improvements that help attract private investment. TIF does not raise the tax rate by itself. Instead, it redirects growth in tax revenue within the allocation area from overlapping taxing units to the redevelopment purposes identified in the approved plan.

Why You May Need a Lawyer

While TIF can be a powerful tool, it involves detailed state statutes, local approvals, and long-term financial commitments. A lawyer with Indiana TIF experience can help you navigate:

- Creating or expanding a TIF allocation area, including drafting resolutions, notices, and the redevelopment plan- Negotiating and documenting an economic development agreement or developer reimbursement agreement- Structuring and closing TIF-backed bonds or leases, including disclosure and continuing compliance- Ensuring project costs are eligible and properly documented for reimbursement- Interlocal agreements with overlapping taxing units and school corporations- Property acquisition, title issues, and relocation or easement matters tied to TIF projects- Open Door Law and public records compliance for Redevelopment Commission meetings and files- Adjusting to appeals and changes in assessed value that can affect TIF revenue projections- Annual reporting, surplus determinations, and pass-through arrangements with the county auditor- Risk management for interest rate exposure, revenue shortfalls, and bond covenants

Local Laws Overview

In Lafayette, Indiana, TIF authority comes primarily from Indiana Code 36-7-14 and related chapters on redevelopment and bonding. Key features include:

- Governing bodies: The Lafayette Redevelopment Commission oversees redevelopment areas and allocation areas. The Redevelopment District is the legal issuer for certain debt. A Redevelopment Authority may be used for lease rental bonds. The plan commission and the Common Council also play approval roles.

- Creation process: The Commission adopts a declaratory resolution and a redevelopment or economic development plan describing the area, conditions, and projects. After notice and a public hearing, the plan commission issues a finding on consistency with the comprehensive plan. The Common Council approves, and the Commission adopts a confirmatory resolution. The allocation area is then established for the capture of incremental assessed value.

- Increment and base: The base assessed value is frozen as of the allocation date. Growth above the base becomes the increment. The Tippecanoe County Auditor calculates and allocates the increment each year, applying state neutralization factors and tax cap credits as required by law.

- Eligible uses: TIF revenue may fund public infrastructure and redevelopment costs that serve or benefit the allocation area. Common categories include streets, sidewalks, trails, water and sewer upgrades, stormwater improvements, fiber and utilities, site demolition and preparation, environmental remediation, parking structures, land acquisition for public uses, and certain economic development incentives memorialized by agreement. Routine operating expenses of a unit are generally not eligible.

- Debt options: The City may issue TIF revenue bonds, Redevelopment District bonds, or lease rental bonds through a Redevelopment Authority. Debt is typically paid from increment, sometimes combined with other pledged revenues or a backup tax levy if authorized. Maturities usually align with project life and projected increment.

- Oversight and compliance: TIF areas and debt must adhere to Indiana budgeting and reporting requirements, including annual TIF management reports, Gateway submissions, and county auditor procedures. The Open Door Law and Access to Public Records Act govern meetings and documents. Modifying an allocation area or plan requires statutory notices, hearings, and approvals similar to creation.

- Interactions with other units: TIF can affect overlapping taxing units by redirecting growth within the allocation area. Lafayette often coordinates with Tippecanoe County, the school corporation, the library, and townships through public meetings and, when appropriate, interlocal agreements or surplus distributions.

- Practical risks: Property tax appeals, exemptions, abatements, or slower-than-expected development can reduce increment. Conservative revenue projections, reserve funds, and protective covenants in agreements and bond documents are common risk mitigation strategies.

Frequently Asked Questions

What exactly is the increment in a Lafayette TIF area

The increment is the property tax revenue generated by the increase in assessed value above the frozen base in a designated allocation area after it is created. The County Auditor allocates that increment to the Redevelopment Commission for approved redevelopment purposes.

Does TIF raise my property tax rate

No. TIF does not change the tax rate by itself. It redirects the growth in tax revenue within the allocation area to redevelopment projects. Overall tax rates are set through the normal budget and levy process under Indiana law.

Who decides how TIF money is spent in Lafayette

The Lafayette Redevelopment Commission administers TIF funds within the scope of the approved redevelopment or economic development plan and applicable statutes. Major actions are taken at public meetings with required notices and approvals.

How long does a TIF district last

There is no single fixed timeframe. An allocation area typically remains active as long as needed to complete projects and retire associated debt. Changes or terminations follow statutory procedures and may be timed to match bond maturities or redevelopment goals.

Can TIF pay for private development costs

TIF can reimburse certain private costs only if they meet public purpose criteria, are eligible under statute, are included in the approved plan, and are documented in an agreement with the City. Typical focus is on public infrastructure and improvements that benefit the allocation area.

How are new TIF areas created in Lafayette

The Redevelopment Commission initiates a declaratory resolution and plan, a public hearing is held with required notices, the plan commission issues a consistency finding, the Common Council approves, and the Commission adopts a confirmatory resolution. The process is transparent and includes public input.

What happens if assessed values go down

If assessed values decline or appeals reduce assessments, the increment can drop. Bond documents and financial plans typically include reserves and protective covenants. The City may also adjust project timing or seek supplemental revenues if needed.

Can TIF be used for maintenance or operating costs

As a general rule, no. TIF is focused on capital projects and redevelopment costs. Routine operations, salaries, or maintenance unrelated to eligible redevelopment purposes are not typical uses.

How do schools and other taxing units factor into TIF decisions

TIF redirects growth within the allocation area that would otherwise be shared by overlapping units. Lafayette coordinates with affected units through public processes and, when appropriate, interlocal agreements or surplus distributions, consistent with Indiana law.

Do developers need to front costs before getting TIF reimbursement

Often, yes. Many projects use a developer-funded model with reimbursement from future increment once performance milestones are met. The terms, eligible costs, timing, and security are set in a negotiated economic development agreement approved at public meetings.

Additional Resources

- Lafayette Redevelopment Commission and Redevelopment Authority for local TIF administration and meetings- City of Lafayette Economic Development Department for project intake and coordination- Tippecanoe County Auditor for allocation area setup, increment allocation, and tax administration- Tippecanoe County Assessor for assessed value questions and appeals process- Lafayette City Clerk for ordinances, resolutions, and public records- Area Plan Commission of Tippecanoe County for comprehensive plan and planning approvals- Indiana Department of Local Government Finance for budgeting, levy, and reporting requirements- Indiana State Board of Accounts for audit standards and compliance- Indiana Bond Bank and municipal advisors for financing support and market access- Indiana Economic Development Corporation for statewide incentives that may complement TIF

Next Steps

- Clarify goals: Define the project, location, expected private investment, and public improvements needed. Identify timelines and potential risks.

- Gather information: Collect site plans, cost estimates, assessed value data, and a basic pro forma. Obtain recent tax and assessment records for parcels in the proposed area.

- Consult counsel early: Engage an Indiana public finance or economic development attorney familiar with Lafayette procedures. Early legal input helps confirm eligibility, structure agreements, and plan a realistic schedule.

- Coordinate with officials: Meet with the Lafayette Redevelopment Commission staff and the Economic Development Department to discuss feasibility, process, and expectations. Ask about existing allocation areas or the potential to expand an area.

- Plan the financing: Work with your attorney, a municipal advisor, and city staff to model increment, size any bonds or reimbursements, and address coverage ratios and reserves. Build in contingencies for appeals and timing delays.

- Document agreements: Negotiate an economic development agreement that defines eligible costs, performance milestones, clawbacks, reporting, and reimbursement timing. Ensure consistency with the redevelopment plan.

- Follow public process: Track notices, hearings, and approvals required by Indiana law. Prepare presentation materials and be ready to answer questions at public meetings.

- Monitor compliance: After approval, maintain records of eligible costs, submit required reports, and coordinate with the county auditor on allocation and any surplus determinations. Review performance annually and adjust as needed.

This guide is informational only and is not legal advice. For advice about your situation, consult a qualified Indiana attorney with TIF experience in Lafayette.