MILLERSBURG — A new economic development area, including a property owned by Forest River Inc., could generate enough money to improve water service and fund other projects on the north side of Millersburg.

The town has formed a redevelopment commission that is planning to create a new tax increment financing district at the southwest corner of C.R. 40 and S.R. 13. The new TIF district is expected to include land owned by Forest River, one of Elkhart County’s largest recreational vehicle companies. The district would not include any residential land.

Bodie Stegelmann, an attorney representing the town, said funds produced from the new TIF district would help pay for projects to improve water service to the area, maintain parks, construct a new building for town offices and possibly build a new community center.

“Forest River is planning at least one new building on one of the properties, and it will provide employment opportunities for the town and help the welfare of the citizens within Millersburg,” Stegelmann said.

The cost of implementing the new economic development area is estimated at $900,000, according to a resolution for the district. Elkhart County’s redevelopment commission has expressed support for the TIF district.