Old school property could be revitalized

TERRE HAUTE, Ind. (WTHI) - A development group is looking to revitalize a blighted area in Terre Haute, which could, in turn, give the Terre Haute City Council (THCC) extra revenue for the general fund.

Plus, the revitalization would create a few construction jobs here in the Wabash Valley.

Thursday night, the THCC heard from the Warren Village LP project on future plans for the Warren School property off of 25th Street.

The THCC estimates Warren Village’s proposed renovation of that property will bring in over $500,000 in tax money over a decade at little cost—at first—to tax payers.

Currently, overgrown grass nearly envelopes the walkway leading up to the doors of the old Eliza Warren School building off of 25th Street.

Its days playing a vital part in the Wabash Valley education system has long past.

However, Warren Village’s plan could re-ignite the vibrancy of the area on the north side.

"There was a project that was proposed for a private organization to build about 111 unit apartment complex here on the back of the old warren school," stated Norm Loudermilk from the THCC.

According to the renovation plans, the new low to middle income housing would come off the back of the existing structure, and completely refurbish the back of the school yard.

But, the developer is asking for a personal tax abatement for 10 years.

During those first two years, they would pay no taxes on the property.

And then, the taxes would escalate until the 10th year, in which they would pay 100 percent of the property taxes.

If the project gets off the ground over a decade, even with the abatement, the taxes brought in would be 5 times more than if the property was left alone.

"If this building was built here because it's not tax exempt, it would pay the full taxes. The tax value it would bring the city would be $451,000 in increased taxes," said Loudermilk.

When all factors involved are added together, the total possible funds available to the city are estimated to be over $500,000.

So, while it's not set in stone, next week, the THCC will vote on whether or not to grant the tax abatement in hopes of future funds.

Loudermilk also said that the project alone should provide a number of construction jobs.