The Whiteland Town Council on Wednesday approved formation of a redevelopment authority and a companion resolution setting parameters for lease-backed bonds intended to finance the Whiteland Road roundabout and related improvements.

The council’s action included approval of an ordinance to create the redevelopment authority and a resolution approving parameters for the bond issuance; both votes were 5-0. The council also appointed three members to the authority and agreed to execute ground-lease documents and interlocking leases required by the financing structure.

The redevelopment authority will lease town-owned rights (described in the meeting as portions of town streets and related “lease premises”) back to the town’s redevelopment commission; the authority would then issue bonds and assign authority to a bond trustee. As presented in the meeting, the financing structure is designed to preserve the town’s direct debt capacity while enabling lease bonds to be issued for the roundabout and other capital work.

Why it matters: The structure allows the town to use lease-backed bonds and, according to the presentation, to avoid breaching statutory direct-debt limits while still acquiring capital for the roundabout project. Staff said the bonds were planned to be tax-exempt and marketed in late October, with proceeds available to start construction in mid-November if all approvals and notices are completed.

What the council approved and the key terms: Town presenters said the redevelopment authority would meet before the redevelopment commission, and that a 30-day notice period follows the authority’s adoption before bond marketing begins. Staff described “not to exceed” parameters in the adopted resolution: a not-to-exceed annual debt service of $400,000, a maximum interest rate of 6 percent and a total term not to exceed 12 years. Presenters characterized the 12-year limit as intentionally generous “for flexibility” and said early payoff would be permitted without penalty. The primary repayment source identified for the bonds was a pledge of special-benefits tax; the town “reserved the right” to use other available funds, including TIF or appropriated town revenues, but staff stressed that the resolution does not automatically start the TIF clock.

Appointments and next steps: The council indicated it would sign appointment paperwork after the meeting for the redevelopment authority members named in the packet. Staff said, if the authority and commission take the anticipated actions this week, marketing could begin in late October and the town could close and commence work in November. Town counsel and financial advisors said the authority would issue the bonds and assign payments to a trustee; once bonds are repaid the leased roads would revert fully to the town.

Discussion points (not formal findings): Council members asked about bond term, whether early payoff penalties would apply, who would buy the bonds and how the pledge interacts with TIF; presenters answered that the bonds would likely be purchased by a bank or investor placement, would carry a fixed rate at sale, and that the town retained flexibility over which funds to use for payments.

Outcome and votes: The motion to adopt the ordinance creating the redevelopment authority passed 5-0. A subsequent resolution setting bond parameters also passed 5-0. The council approved appointments to the redevelopment authority by a 5-0 vote and authorized staff to proceed with the required leases and documentation, subject to final legal review and the normal notice periods.

Ending note: Staff and the town’s financial advisor said more detailed lease and bond documents will be returned to council and the redevelopment bodies for final signatures; the council agreed to continue coordination with bond counsel and the town attorney as the process proceeds.