The designation could generate about $150,000 annually.
Redevelopment Director Greg Leatherman said the money would be used to develop a pedestrian/bike trail from Homestead Road to the store near West Jefferson and Interstate 69. That project is expected to cost about $600,000.
A TIF designation would allow the city to use property taxes generated by improvements to pay for improvements within the district. Later on, Leatherman said, TIF funds could also help create a new entrance near the Village at Coventry Shopping Center, where Kroger is the major tenant.
The 127,000-square-foot Coventry store, Kroger's second Marketplace facility in Fort Wayne, opened earlier this month at a cost of more than $13 million.