CHATSWORTH - The town of Chatsworth has moved to make it easier to begin work this spring on Oliver's Crossing, a 942-acre housing development.

The Chatsworth Zoning Board has approved developing a tax increment financing district. 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.

"The TIF district is important to the development because it provides a level of comfort for the investors and developers," developer Ken Kurtenbach said. "A housing development is a risk, so most developers will move on to other projects if a TIF district isn't in place."

Besides helping the project to add homes to Chatsworth, the district will help the town attract more businesses, improve existing businesses and set aside money for other improvements, he said.

"There's a bright future for the town of Chatsworth," Mayor Rich Pearson said. "This (the TIF district) will help the school district and people in other communities as well."

As the area in the TIF district develops, the property becomes more valuable. That means it produces more property-tax money, even though tax rates don't increase.

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 rest of the property-tax revenue goes into the TIF fund.

Revenue projections

The TIF district is expected to pump $94 million into the project, but the development would net more than that in taxes, Kurtenbach said previously.

He said the development would bring in $265 million more in taxes than the undeveloped land would generate over the 23 years of the TIF district's life. Deduct the $94 million, and that yields $171 million for the taxing bodies, he said.

The TIF district 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.

Oliver's Crossing is a $333 million development between Livingston County Highway 3 and 3200 East Road. Once completed, Oliver's Crossing will have a 300-acre lake, a 37-acre island, and 350 lakeside lots.

It is named after Kurtenbach's great-great-great-grandfather, Franklin Oliver, one of Livingston County's first settlers.

Construction on the lake will begin in spring and may be completed this summer. Kurtenbach said lots will range from $150,000 to $200,000.

The project will take at least 10 years to complete as 28 to 58 homes are built each year, he said.

Tony Sapochetti contributed to this

report.