A Merrillville housing development is getting some financing help from the town.
The town council Tuesday agreed to issue up to $20 million in economic development tax increment revenue bonds for Liberty Estates West, south of U.S. 30 near Whitcomb. That provides financing to the developer, Hallmark Development, which will be paid back using the increase in property tax revenues.
Interim Town Manager Michael Griffin called it a textbook example of a powerful redevelopment tool. "This will provide an incentive for the developer to continue with the great work he is doing to provide housing at the high level, also trying to make it accessible to those who are entering the housing market by allowing for contract payments," Griffin told council members.
Griffin said the new development may also include enough space for a new regional park.
Resident Chris Holst praised Hallmark Development for donating to Merrillville parks and nonprofits, but questioned the town's use of tax increment financing. "Say you're a family of four, you're sending two children to Merrillville Schools. You're doing things that you should be doing, but you're tax revenue's not going to help their educations. It's going into a TIF zone," Holst told council members.
In Indiana, school districts generally use local property taxes to fund transportation and operations expenses, while teacher salaries and other education expenses are typically funded by the state.
