After months of rumors, the identity of the multi-million dollar company that intends to move into Stonebridge business park in Hopewell Township could be revealed Wednesday.
Company officials are expected to attend a special meeting of the South Eastern School Board at 4 p.m. Wednesday to discuss the Tax Increment Financing program, or TIF. The board was expected to act on the program last Thursday, but when it did not have enough members present for a quorum, the meeting was canceled.
According to a website operated by the Pennsylvania Department of Community and Economic Development, TIFs are used to stimulate the economy of communities and assist in the development, redevelopment and revitalization of brownfield and greenfield areas. The program provides credit enhancement for TIF projects to improve market access and lower capital costs through the use of guarantees to issuers of bonds or other indebtedness, the website states.
Although initially aimed at improving blighted areas, or brownfields, TIFs can be used in places that are planned for industrial and commercial uses, but not yet developed, so-called greenfields.
The latter is the case for Stonebridge. The business park off Route 851 and Interstate 83 remains partially undeveloped.
Officials from the school district, township, county and state have been meeting privately for several months about creating a TIF district at Stonebridge, but
If South Eastern approves the TIF district during Wednesday's meeting, Hopewell Township supervisors are expected to follow suit, possibly during their next regular meeting Dec. 6.
Once the TIF district is formed, its taxing authority can issue bonds, allowing the authority to use the borrowed money to finance development in the TIF district.
The district's property tax revenue is frozen at the value established in the year the district is formed. The taxing authority will only receive tax revenues at that frozen level in subsequent years. However, as development occurs, property values are expected to rise, thus increasing tax revenues.
Any tax money generated above the frozen level must be used to pay off the bonds that were issued by the taxing authority.