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Council accepts introduction of Eastover TIF amendment request; bond counsel seeks more time to vet second issuance
Summary
City bond counsel and financial advisors briefed the Jackson City Council on an amended and restated development and reimbursement agreement for the Eastover (The District) TIF; counsel said additional time is needed to vet a requested second tranche of TIF bonds, and staff estimated annual incremental revenues at about $760,000.
The Jackson City Council on May 20 added and introduced a resolution to amend a development and reimbursement agreement with District Land Development Company LLC for the Eastover District tax-increment financing (TIF) area and discussed a requested second issuance of TIF bonds.
Trey Hairston of bond counsel Butler Snow told the council the developer has requested an amendment to the development and reimbursement agreement and asked for a second issuance of TIF bonds. Hairston said the bond counsel and financial advisors are vetting the request and conducting necessary tax analyses; because the developer’s deadline for requesting the second issuance falls in July, counsel asked for extra time to complete the vetting rather than rush a decision.
Ricardo Callender of PFM Financial Advisors gave an estimate of annual tax increment revenues: he said roughly $600,000 in property taxes and, when including captured sales taxes and other captured revenue streams, estimated total TIF revenues of approximately $760,000 annually.
Why it matters: The Eastover District contributes incremental property and sales tax revenue to the city’s tax base; the second issuance of TIF bonds would use future captured increments to finance additional development or reimburse developer costs. Council members said the district appears successful but asked staff to watch activity levels and development momentum.
Outcome and next steps: Council voted to add the item to the agenda and introduced the amendment for consideration; bond counsel requested additional time (up to one year) to complete vetting and tax analysis before any issuance of a second tranche of bonds. The council did not approve bond issuance at the meeting.
Quotes (from meeting): “I think we need more time just to make sure we're comfortable with all the numbers,” said Trey Hairston, bond counsel. Financial adviser Ricardo Callender said, “When you add the sales tax piece to that, we estimate the total revenues that are being generated from this TIF is approximately $760,000.”
Ending: Council members expressed support for monitoring district activity and for allowing counsel and advisors sufficient time to vet any additional bond issuance before returning with a recommendation.
