City advances TIF district for AP Development

Richmond continues on track toward helping AP Development use tax increment finance dollars to help finance its Legacy on Main redevelopment project.

During its July 22 meeting, the Richmond Advisory Plan Commission approved a Richmond Redevelopment Commission declaratory resolution that would remove seven AP Development properties along East Main Street from the original downtown TIF district and place them in their own TIF district. A similar action created a TIF district for the Flaherty & Collins 6Main apartment project.

Richmond Common Council now must approve the TIF district’s creation.

The TIF district freezes the assessed value of the seven properties at Jan. 1, 2026. Property taxes AP Development pays on those assessments will enter the property tax pool divided among all overlapping tax districts. However, the Redevelopment Commission will capture the property taxes paid on increases in assessment during the TIF district’s 25-year life. That money would then help cover development costs.

As a part of the Revitalize Richmond project through Earlham College, the Brownsburg-based AP Development originally purchased six downtown properties, then this year also purchased the Kresge building. The developer plans to create 105 upper-floor apartments with ground-floor retail space in six of the buildings and use the former Grassroots Action Center at 819 E. Main St. as a project headquarters before turning that site into green space. The properties being developed in the $30 million project are:

• 725-735 E. Main St., the Odd Fellows building.
• 726 E. Main St., the Jenkins building.
• 728 E. Main St., the BMO Harris building.
• 801 E. Main St., the Kresge building.
• 807-817 E. Main St., Knollenberg’s building.
• 828-832 E. Main St., Hittle building.

Shannon Hayes, the city’s planning director, said the AP Development project conforms to the city’s redevelopment plan and indicated planning staff recommended approving the TIF district.