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Council approves Pleasant Brook TIF area, backs $11 million bonds for multifamily project
Summary
The Kokomo Common Council adopted a declaratory resolution establishing the Pleasant Brook Economic Development Area and approved first reading of a bond ordinance to issue up to $11 million in taxable TIF-backed bonds to support a roughly $26 million, two-phase multifamily development.
The Kokomo Common Council on a unanimous vote adopted Declaratory Resolution 28-49 to establish the Pleasant Brook Economic Development Area and approved on first reading Ordinance 72-04 to authorize taxable economic development tax-increment revenue bonds to fund a new multifamily development.
The resolution and ordinance matter because they clear the way for a private developer to receive financing supported by tax increment financing (TIF) revenues tied to the Pleasant Brook area. Councilwoman Sandberg said the project "has the estimated total developer capital investment is approximately $26,000,000" and described a two‑phase plan with 192 units in the first phase and 142 units in the second phase.
Under the plan the city will issue taxable economic development revenue bonds in an aggregate principal amount not to exceed $11,000,000 and with an interest rate "not to exceed 8%." Councilwoman Sandberg said, "These bonds will be paid solely from the TIF revenues." She moved to adopt Declaratory Resolution 28-49; the council seconded the motion and voted to adopt the resolution.
Councilman Grieco moved approval of Ordinance 72-04, describing it as an ordinance "authorizing the issuance of the City of Kokomo taxable economic development tax increment revenue bonds, series 2025 Pleasant Brook project, and the lending of those proceeds thereof to the borrower." The council voted to pass the ordinance on first reading.
City staff and council indicated the redevelopment commission already approved an economic development plan and that the city’s involvement is to issue bonds and confirm the economic development agreement with Affordable Market Rate LLC, the named project borrower. Council members noted the bonds are to be repaid from TIF revenues and that the developer bears ultimate responsibility for repayment.
The project site is described as on the southeast corner of the city off Brook Road north of East Central Road and just north of Walnut Creek Apartments. Planned amenities include a community swimming pool and an amenity center; the developer said the project anticipates serving both young professionals and working-class families.
What happened next: the council adopted the declaratory resolution and passed Ordinance 72-04 on first reading; the ordinance will require future proceedings as defined in state and local bond rules before funds are issued.
Meeting context: the item was presented during the council meeting after minutes and routine items. No public opposition to the resolution or the bond ordinance was recorded in the transcript provided.
