The City of Franklin, Indiana

Economic Incentives (Other Than Tax Abatements):
Within the state of Indiana several economic incentives other than tax abatements are allowed to be considered to assist companies with either locating to Franklin or expanding their existing businesses. These other economic incentives include economic development revenue bonds, tax increment financing (TIF), and lease/purchase agreements.

Economic Development Revenue Bonds:
These types of bonds are generally tax-exempt bonds with low rates of interest. The bonds may be used to finance economic development projects such as industrial projects, multi-family housing projects, etc.

The use of economic development revenue bonds entails the city acting as a conduit for a) the endorsement of the project, and b) authorization for the respective company to issue the bonds. These endorsements by the City do not in any way abate, expend or forgive any tax dollars, and for these reasons this shall be the preferred economic incentive to be used by companies for economic development projects.

Tax Increment Financing (TIF):
A TIF involves utilizing additional property tax revenue from private development within a designated area for financing public improvements. The public improvements financed by the TIF are needed to induce new development or are necessitated by new development.

Lease & Purchase Agreements:
A Lease & Purchase Agreement allows a city through its Redevelopment Commission and Authority to purchase real and personal property for an economic development project which is then leased or purchased by the project owner.

Tax Abatements:
Tax abatement applications submitted to the City of Franklin shall be considered based upon all of the following factors: determination of economic revitalization areas (ERA's), time period of economic revitalization area designation, criteria for tax abatement approvals, time periods for any approvals, singular tax abatements, and respective policies and procedures.In addition to traditional personal property and real property tax abatements, the Vacant Building Tax Abatement program is also available. Eligible vacant buildings must be zoned for commercial or industrial purposes and has been unoccupied for at least one year before the owner of the building or a tenant of the owner occupies the building. The deduction is 100% of the assessed value of the building in year one and 50% in year two.

Determination of Economic Revitalization Areas or Economic Development Target Areas:
Before any tax abatement may be granted, the common council, upon a recommendation by the economic development commission, must designate the site an economic revitalization area or an economic development target area. In doing so, all of the statutory requirements defining an economic revitalization area or an economic development target area which are outlined in Section 6-1.1-12.1-1 and Section 6-1.1-12.1-7 of the Indiana Code, and all subsequent amendments thereof, must be met.

Moreover, said designation shall be based on quantitative, tangible characteristics of the respective site, other than drainage. Drainage shall not be considered when assessing whether or not a site qualifies as an economic revitalization area or economic development target area since all development in and around Franklin must always address drainage concerns.

Additionally, as part of the application process, the applicant shall prepare and provide documentation which outlines in very specific terms and illustrations how, in accordance with the definition of an economic revitalization area or an economic development target area, the project qualifies for the designation. This documentation shall, in turn, be reviewed and verified by the economic development staff, with a written report outlining this verification being provided to the economic development commission and common council as part of the application process.