CHATSWORTH - The people of Chatsworth will have their say tonight on the proposed tax increment financing district that could pump up to $94 million into the development of the 800-lot Oliver's Crossing subdivision.

A public hearing will be at 6 p.m. today at Chatsworth Town Hall, 16 N. Fourth St.

Officials will explain the TIF proposal, which is expected to come to a City Council vote in mid-January.

In a TIF district, a portion of property tax money is diverted into a special fund to pay for incentives, such as loans, grants and infrastructure improvements, to promote economic development in a blighted or underdeveloped area.

As the area develops, the extra property taxes generated by that development go into the TIF fund. The taxing bodies, such as the city and the local school district, collect only the taxes they would have collected from the unimproved property.

The TIF district has been proposed to aid the development of the $333 million, 942-acre Oliver's Crossing, which will feature a manmade lake of about 300 acres, between Livingston County Highway 3 and 3200 East Road, co-developer Jerry Kurtenbach said.

"It (the TIF district) is absolutely and unequivocally important for the project," Kurtenbach said. "It really is a golden goose for the town, and I'm not trying to be silly about this, but it's true."

Kurtenbach said that the lake may be completed in summer 2008, and the entire project is expected to take at least a decade.

The office of Thomas N. Jacob & Associates, Bloomington, analyzed the proposal for a TIF district that would follow U.S. 24 and West Walnut Street through the town and include several areas on the west and south side. The district also would include areas along County Highway 3 and east of First Street to the northern edge of Pine Street.

The TIF district would have a lifespan of 23 years.

The TIF district would pay for $94 million of the $333 million development price tag. That would include paying to build streets, sewers and water lines to the project and other incentives.

Oliver's Crossing could end up paying up to $265 million in property taxes over the 23-year life of the TIF district if all the lots are developed.

Former Chatsworth board member Terry Miller said he would like to see Chatsworth grow, but he has heard of both positive and negative examples of how TIF districts can work.

"Who knows at this point," Miller said of how Chatsworth will benefit. "It's probably not going to hurt, but time will tell how much the town will benefit from it."

The TIF report noted retail sales have dropped by more than $1 million from 2004 to 2006, and the population is declining. The lack of retail growth has limited Chatsworth's tax revenue and its capacity for providing high quality public service to its residents, the report said.

The TIF district may stimulate the town's economy, the report found.

The TIF district has been considered and negotiated for approximately two years, Kurtenbach said.