School super raises concerns about industrial park tax plan
The Columbia Rising Industrial Park was formerly the Plum Creek sawmill and planer site.
School District 6 Superintendent Steve Bradshaw raised concerns about the city’s plan to create a targeted economic development district at the Columbia Rising Industrial Park.
The industrial park is anchored by SmartLam and the city recently approved a 19-unit subdivision on the remainder of the 38 acre park. The site, just north of the Truck Route, housed the former Plum Creek planer and sawmill. Outside of SmartLam, it’s pretty much vacant.
The TEDD, as its known, would also incorporate a tax increment finance district. A TIF takes the additional tax revenue after the district is created and uses it to invest in further improvements in the park.
For example, if a business comes in and creates additional tax value and revenue at the Park, the additional revenue above the 2018 tax base can be used to invest back into infrastructure and other amenities in the park. There’s a problem, however. Without the TIF, the school would get some of that additional revenue. with the TIF, they don’t.
Bradshaw was concerned about the length of time the TIF would exist. By law, they can last as long as 15 years. But the city could also float bonds against the TIF and in that case, the TIF could exist as long as the bonds — up to 40 years, noted Janet Cornish of Community Development Services of Montana.
Cornish assisted the city create the development district for the city. She also noted that these districts create jobs, which means more homes and more students in schools. In the long run, it benefits schools. TIF funding has also been used to fund school improvements.
“Most schools benefit in the short term as well as the long term,” Cornish said. “(But) schools have delayed gratification.”
Bradshaw made it clear he wasn’t against economic development, but he was concerned about the longterm potential loss of revenue to the school district if a big business came in.
“Forty years is three generations of kids,” he said, later adding, “If a major company came in, to lose that taxable value hurts us tremendously.”
SmartLam in the past has said its expansion at the park is a $20 million investment.
Later in the meeting the council unanimously approved a first reading of the TEDD. The public hearing continues to the Nov. 5 meeting. Meanwhile, Bradshaw said he would discuss the matter further with the school District 6 Board.