KOKOMO, Ind. — The Kokomo Common Council on second reading approved Ordinance 72-10, authorizing the issuance of taxable economic development tax-increment revenue bonds (not to exceed $8 million) and taxable economic development revenue notes (not to exceed $5 million, on a forgivable basis) to support multifamily development identified as the Fairway Core and Fairway Forward projects.

What the ordinance does: The ordinance authorizes the City of Kokomo to permit the Economic Development Commission to issue and pledge tax-increment revenues to finance portions of the projects. The ordinance states the bonds and forgivable notes are special, limited obligations of the city and “do not and shall never constitute an indebtedness of or a charge against the general credit rating and taxing power of the city,” meaning repayment is tied to the financing agreement and pledged incremental revenues rather than the city’s general fund.

Public questions and staff explanation: During floor discussion, a resident asked whether taxpayers would be on the hook if the developer could not repay the financing. Weston Reed, Director of Development, explained the common TIF practice: the developer issues bonds tied to the project, and project revenues and incremental tax receipts are used to retire the bonds over time. The economic redevelopment commission had held a public hearing on Aug. 7 and recommended the financing to the council, per the ordinance text.

Why it matters: City staff argued that targeted multifamily development can broaden Kokomo’s revenue mix by bringing more income-tax payers into the city, which staff say could help reduce the city’s reliance on property taxes over time. The ordinance directs city officials to proceed with the financing steps and authorizes the mayor and city controller to execute sale documents as necessary.

Outcome: Council approved Ordinance 72-10 on second reading. The ordinance requires the city and the redevelopment commission to perform the required procedural steps (public notices and hearings) and to pledge incremental revenues as described in the ordinance text.

What remains open: Specific financing closings, borrower identities, and project timelines were described in general terms in the ordinance but were not detailed on the council floor; council members and staff indicated the projects will proceed through the standard TIF and closing processes outlined by the redevelopment commission.