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Redevelopment commission approves first step to create Solar project allocation area
Summary
The Michigan City Redevelopment Commission voted July 14 to approve a declaratory resolution creating a site-specific tax-increment allocation area for a proposed solar project, allowing future TIF revenues to be pledged toward developer-backed bonds; the measure must clear multiple additional approvals before finalization.
The Michigan City Redevelopment Commission on July 14 adopted a declaratory resolution to create a site-specific allocation area for a proposed solar project, a first step that would allow tax-increment revenues from the project site to be pledged to bonds intended to help finance construction.
The move matters because the allocation area would let the commission capture TIF (tax increment financing) generated at the solar site and, if later approved through the required process, pledge that TIF to pay economic development bonds associated with the project.
Attorney Tom Everett of Barnes & Thornburg summarized the item for the commission: “This resolution establishes a new allocation area within the city's consolidated economic development area, and this will be for the solar project.” He described the allocation area as site-specific, roughly 2.8 acres, and said the “base assessment date for the new allocation area would be January 1,” with the allocation area expiring 25 years after the issuance date of the first series of bonds payable from that area’s TIF. Everett explained the bonds anticipated in the financing plan would be payable from TIF revenues only and “would not be a general obligation of the city or the commission.”
Commission members were told this approval is an early procedural step: if the declaratory resolution is approved by the Plan Commission and the Common Council, the matter will return to the redevelopment commission for a public hearing and final action. Commissioners also heard that related steps include Economic Improvement District proceedings and bond ordinances tied to the EID; the commission is aiming to have tools in place so the developer can pursue financing by late 2025.
The commission voted in favor of the declaratory resolution at the July 14 meeting. Commissioners and staff noted several follow-on approvals are required — Plan Commission, Common Council and, for EID bonds, Economic Development Commission review — and stressed that the expected bonds would be payable from the project’s TIF revenues and not from the city’s tax levy or general obligation debt.
Next steps described to the commission include Plan Commission and council consideration of the amendment, a public hearing before the redevelopment commission, and later bond and EID steps if those approvals are secured.
The commission recorded the motion and a unanimous “aye” vote; the item will move on to the council for first reading and further review.
