photo by Sarah A. Miller/Tyler Morning Telegraph Former Lindale city manager Owen Scott gives a tour in 2012 inside the large former Allen Cannery building that the city of Lindale purchased. The Lindale city council has made a plan to create a Tax Increment Financing Zone for redevelopment around downtown. A deal to sell a this property to a developer to become a mixed-use residential/commercial space is expected to be finalized today.

The Lindale city council approved creation of a Tax Increment Financing Zone it hopes will fund infrastructure and other improvements that will spur growth in north Lindale and downtown.

The council is betting more than $8.3 million in taxpayer funds, which includes a $5 million bond, that a private mixed-use development by Lindale CBC LLC, will pay off the investment by drawing businesses and rooftops to the area over the 30-year life of the zone.

The centerpiece of the public-private development is a building planned to become housing and commercial space.

The building was built to house a booming fruit and vegetable canning industry in the area in the 1920s through World War II. It was among three operations, where everything from local blackberries, peas and meat were canned. The cannery outlasted the others but closed more than a decade ago.

The city purchased the property, which included the cannery and another smaller building and 12 acres near the intersection of North and Industrial streets.

The city finalized the sale of the property to Lindale CBC Wednesday for $945,000.

The city’s project costs include $400,000 for acquisition of property and easements for just more than half an acre; about $500,000 for water infrastructure, including a pond/water feature; $1.7 million in street improvements and parking; almost $500,000 for landscaping, signs and other amenities; $305,000 in park improvements; $750,000 in improvements to the cannery, $400,000 in administrative costs and a 10 percent contingency for project overages.

The financing zone would capture property valuation increases along a half-mile wide, half-mile long strip along the U.S. Highway 69 commercial corridor.

The city expects new capital investment of between $20 million and $26 million during the first 15 years within the zone and $35.9 million to $71.4 million over 30 years.

City Manager Craig Lindholm said the city hopes the development will spark further revitalization of downtown Lindale and more residential and commercial growth in the northern area of the city. Lindholm said the Lindale Relief Route, which will connect Toll 49 and Interstate 20 with U.S. Highway 69 north of the city, is expected to bring residential growth to north of downtown.

Lindholm said easier access to Tyler and Dallas via the toll road would drive development.

“We’re expecting a northward migration for residential (development),” he said. “The effort on the city’s part is to create a destination identity, and we think revitalizing downtown helps spur that. It’s about creating community.”

Lindholm visualizes mom-and-pop shops located within a hopping community gathering point. He said there are plans for regular events at the planned park, which already includes Pickers Pavilion.

Phase 1 of the project would create about 20 loft-type residential units and about 25 commercial units, Lindholm said.

But Lindholm said future construction of other housing units is expected on or near the property.

Councilman Clyde Harper said he worked at one of the three canneries in the 1950s and that the project is a good way to help Lindale grow.

Lindale has been growing. The Interstate 20-U.S. 69 corridor has been booming for the past decade spurred on by the Target Distribution Center.

New construction in Lindale and Lindale Independent School District taxing jurisdictions has outpaced most towns and districts outside of Tyler over the past decade, according to the Smith County Appraisal District.

Lindale experienced $36.5 million in new construction last year.

But Harper said the city could do better by creating a community and family oriented location that improves the quality of life in Lindale.

“It’s going to change,” he said. “To grow, it’s got to change.”

The project will break ground during a ceremony at 5:30 p.m. June 11.