According to a recent news report, the mayor said the IEDC "put hard parameters on us" 18 months ago by insisting on a new spec building and 50 new high-tech jobs at Intelliplex. The mayor's "hard parameters" were requirements mandated by the IEDC in order for Intelliplex to retain its high-tech certification.
Now, local officials say completion of the IEDC's probationary requirements by the October 4 deadline appears remote.
Indiana's Certified Technology Park Program allows incremental state personal income and sales taxes to be captured locally and reinvested in the CTP for the development of technology infrastructure.
If Intelliplex loses state certification, the city won't be able to capture almost $200,000 in annual sales tax revenues.
Park developers bemoan the loss of the captured tax money in the CTP Program, but declare there are other ways to capture tax money.
The mayor suggested creation of a tax increment finance district as one option.
A new TIF.
Wow! I didn't see that comin'! Did you!?
Anyway, if you're still perplexed by the loss of state certification at Shelbyville's High-Tech Park, it might be helpful to review the "parameters" established by the IEDC.
Here are the eligibility requirements for designation as a Certified Technology Park.
Certified Tech Parks
The Certified Technology Parks program was created as a tool to support the attraction and growth of high-technology business in Indiana and promote technology transfer opportunities. Designation as a Certified Tech Park allows for the local recapture of certain state and local tax revenue which can be invested in the development of the park.
The Certified Technology Park program is established by I.C. 36-7-32.
The Indiana Economic Development Corporation (IEDC) has established the following requirements for approval of current and future applications for Certified Tech Park (CTP) status and grants from the Technology Development Grant Fund:
Submission of a viable business plan that establishes a clear strategy for long-term growth.
Demonstration that the designation of the CTP creates an opportunity to attract a specific high-tech business.
Agreement on behalf of the applicant that funds from the CTP's tax increment account and grants awarded from the Technology Development Grant Fund will be expended according to CTP guidelines and agreements.
Agreement on behalf of the applicant that IEDC may revoke the tax increment and recapture rights of the technology park in the event of noncompliance with any part of the agreements of the community, redevelopment commission, or any tenant of the park.
Evidence of local government financial participation in the establishment of the CTP.
An agreement with an Indiana institution of higher education whereby the institution makes a meaningful monetary or in kind contribution to the park.
Agreement between IEDC and the applicant regarding:
The types of businesses eligible to locate in the park; and
The types of businesses located within the park from which revenue may be recaptured for use within the park.
Calculation of Fund:
Certified technology parks are allowed to capture a maximum of five million dollars ($5,000,000) over the life of the park in incremental sales and income taxes.