Community Revitalization Enhancement District (CReED)

The Community Revitalization Enhancement District (CReED) program was created by the State of Indiana under I.C. 36-7-13 and subsequently by local resolution 17-2001 as a means to encourage investment in areas that have been severely adversely affected by economic downturn and/or the loss of a specific major employer. Status as a CReED confers special tax treatment to the community in which the CReED is located and allows businesses investing or locating in the CReED to apply for an investment tax credit available exclusively in CReEDs. Subsequent legislation extended the focus of the CReED statute to include the encouragement of investment in downtown areas in addition to the industrial areas contemplated in the initial CReED legislation. These tools were deemed necessary by the General Assembly as an additional enticement to bring investment to areas facing obstacles including dilapidated buildings, insufficient or outdated infrastructure, and other obstacles to development associated with industrial decline.

Communities may recapture up to 75% of incremental state sales tax collections and 75% of state personal income tax collections within the CReED district for a period of up to fifteen years. The maximum amount that may be recaptured per CReED district in any given year is capped at $1,000,000. The recaptured sales and income tax collections are deposited in an industrial development fund established for each CReED. Balances in the industrial development fund may be used for acquisition and rehabilitation of property within the CReED and/or the payment of principal and interest of debt obligations issued by the community in furtherance of economic development objectives.

The CReED Tax Credit allows for a credit against a company’s Indiana state income tax liability equal to 25% of a company’s expenditures for redevelopment or rehabilitation of property located within a CReED. The amount of such expenditures that will qualify for the CReED Tax Credit must be approved in advance by IEDC.

CReED has two phases in Marion. Phase 1 was Established in 2002 and is sun setting in 2017. Phase 2 was established (Resolution 19-2004) in 2005 and is sun setting in 2019. The purpose is to positively impact industrial and commercial redevelopment in the district. The Community Revitalization Enhancement District covers specific geography within the City of Marion that generally represents the areas of the former Foster Forbes and Thompson Industrial areas as well as the Five Points Mall Area. CReED may recover up to One-Million dollars of taxes that would otherwise be collected by the state (Income and Sales taxes).

From 2003 – 2005, the district recovered on average $80,000 - 150,000 but after the district was modified (Phase 2) to include the Five Points Mall area, it has been averaging $850,000 in funding per year. The District has 3 million dollars cash on hand, and $300,490.00 in outstanding commitments (that commitment represents the Butler Avenue extension to the Five Points Mall area). There is a map of the CReED district attached to this document.

Marion’s CReED is governed by a 9 member board, The Commission on Industrial Redevelopment, that the commissioners membership are dictated by I.C. 36-7-13 those appointing agencies and current commissioners are:

Governor Appointment TBD
Lt. Governor Appointment Gary Tyler
Department of Workforce Development TBD
Mayor Appointment (Finance) Tim Moorman
Mayor Appointment (City Government) Janet Pearson
Mayor Appointment (City Utility) Chuck Binkerd
Mayor Appointment (Labor) Frank Stotts
Mayor Appointment (Misc) Bobby Browder

CReED

EST Name Sun Set Finance
2002 Phase 1 (RCA/ Ball Foster / YMCA Areas) 2017 375k Annual*
2005 Phase 2 (FPM Area) 2019 $500k Annual*

*Projected from past performance

Codes and Ordianaces

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