City Plan Director Jeremy Skinner points to a map outlining the proposal to expand the Winona Interurban TIF district. InkFreeNews photo by Dan Spalding.

WARSAW — Officials are moving closer to expanding a TIF district on the east side of Warsaw that would help in trying to eventually clean up what is commonly known as the Arnolt property near Argonne Road.

City Council on Monday, Sept. 16, approved a request to expand the Winona Interurban tax increment finance district after the redevelopment and plan commission threw its support behind the plan.

TIF revenues are used to encourage economic development and in this case, turn around two major blighted properties — the Arnolt property and the old Gatke property on South McKinley Street.

A map outlining the expanded Winona Interurban TIF district was included in paperwork provided to city council. The road along the southern part of the district is Winona Avenue. Argonne Road is the first major north-south on the west side of the district.

The city has been looking at ways to demolish buildings that are part of the Gatke property for years and has been working to secure grants to help cover the initial steps in recent years.

The two tracts of land sit within a mile of each other and perhaps represent the two biggest blighted properties in the city.

The expanded district will enable the city to work with Michiana Area Council of Governments as it seeks additional funding options for assessment and potential clean-up over the next few years, Skinner said in a memo to city council.

The plan now goes back to the redevelopment commission for final approval.

The proposal to widen the district is also being done to accommodate plans by an unidentified person or group to seek an alcohol license by way of creating a riverfront district.

Skinner said he doesn’t know who is seeking the license, but said the property tied to the request is on the east end of Jefferson Street.

Riverfront districts are used primarily to obtain a new alcohol license for a modest cost. According to city attorney Scott Reust, the licenses are available for $1,000.

If the district is approved, the seeker of the license would apply with the state for the license.

Council also took another step toward approving the city’s 2020 budget by hosting a public meeting. None of the council had questions or concerns that they voiced and nobody from the public spoke about it when given a chance Monday night.

Mayor Joe Thallemer said there are still opportunities to trim the budget before final approval.

If approved today, the entire budget would be $29.6 million and would rely on a city tax rate of $1.3524, but more significant reductions are expected that will help bring down the tax rate closer to the current level of $1.2797.