Redevelopment Commission seeks approval for $61M public safety center financing

The West Lafayette City Council convened on April 7, 2025, to discuss significant financial steps related to the construction of a new public safety center. The meeting, led by Larry Oates, president of the redevelopment commission, focused on the financial framework necessary for the project, which involves a complex bond issuance process.

Oates explained that the redevelopment commission does not hold the bonds directly; instead, the redevelopment authority is responsible for this function. The commission will pay lease payments to the authority, which will match the bond payments, creating a two-step financial process essential for compliance with state law.

Zach Klutz from Taft Law Firm, serving as bond counsel, elaborated on the financing structure. The redevelopment authority plans to issue bonds not exceeding $61 million, with an anticipated amount around $58.5 million. These bonds will be amortized over 14 years, with a maximum interest rate capped at 5%. The financing will be supported by Tax Increment Financing (TIF) revenues from designated allocation areas, with a special benefit tax as a backup if TIF revenues fall short.

The council was presented with a resolution seeking consent for the redevelopment authority and commission to proceed with the lease agreement and bond issuance. This resolution also authorizes the transfer of necessary real estate from the city to the redevelopment authority for the project’s construction.

The next steps include a scheduled meeting on April 16, where the redevelopment commission will approve the lease, followed by the redevelopment authority's approval and bond issuance authorization. The anticipated closing for the bond sale is set for mid-June, which would allow for groundbreaking to commence shortly thereafter.

The meeting underscored the city's commitment to enhancing public safety infrastructure while navigating the complexities of municipal financing.