The city of West Lafayette’s total property value has reached a new benchmark.
In the 2018 budget ordinance, set to be discussed at Monday's city council meeting, the total estimated assessed value of buildings and land in the city exceeds $1 billion for the first time.
Tippecanoe County Assessor Eric Grossman says he wasn’t aware of the figure, but adds it likely does not include almost any of the value the city will get from three new multi-story apartment buildings going up near the State Street overhaul.
“A lot can change with the actual construction of the building, but three buildings at $40 million is another $120 million," Grossman says. "And that’s just in those three highrises.”
That could add another ten percent to the city’s tax base in the next few years.
Grossman says the State Street redevelopment project has meant buildings in nearby neighborhoods have seen noticeable tax hikes in recent years, as demand has spiked in the area.
But he says those additions to the city’s tax base will likely pale in comparison to when hundreds of new apartments go on the market in a year or two.
“You know, it takes a lot of $150,000 properties increasing two and three percent to get the same growth from adding a $20-30 million facility,” Grossman says.
Even though the city has lowered its tax rate the last couple years, the increasing value of the property has still meant a net tax increase for many residents.
West Lafayette’s total assessed valuation has increased by about a quarter in just the last six years.
It does not include Purdue University property, because the school is tax-exempt.