St John Economic Development Commission approves TIF-backed bonds for Jewel Osco project

The St John Town Economic Development Commission on April 23 approved a resolution authorizing the issuance of tax-increment revenue bonds of up to $3.5 million to help finance a Jewel Osco project to be constructed by Air Alchemist LLC.

At a public hearing, Tom Everett, an attorney with Barnes & Thornburg in South Bend, told the commission the bonds would be issued in one or more series and could be purchased by the developer or a third party. "These bonds would be issued in 1 or more series to be purchased by a developer or a third party, and would be payable solely from tax increment revenues generated by the project itself," Everett said. He said interest on the bonds would not exceed 8 percent and that the Town would not be required to make up any shortfall in tax-increment revenues.

The commission opened a public hearing for the financing, heard Everett's overview, took no public testimony, and then considered a resolution labeled 2025-4-23 that would approve and authorize actions related to the proposed bonds and accept the commission's report to the Town Council. The commission adopted Resolution 2025-4-23 by voice vote. The resolution, as described in the meeting, approves the issuance of economic development tax-increment revenue bonds for the project and forwards the commission's report to the town council.

Everett said the town would not pledge other town funds or taxing authority to the bonds and that there would be no impact on the Town's credit rating if the bonds were issued as described. The commission record shows the redevelopment commission earlier this year created a new TIF allocation area for the project; that allocation area would be the source of tax-increment revenues pledged to the bonds. The resolution limits the principal amount to $3.5 million and interest to no more than 8 percent, according to the attorney's comments.

The commission did not record a roll-call vote in the transcript; the minutes show the motion to adopt the resolution was made and seconded and the chair called for "All in favor," to which members responded "Aye." The resolution now proceeds as the commission's report to the Town Council per the language cited at the meeting.

Pending actions before the Town Council or any bond purchaser, the financing plan described at the hearing would place repayment responsibility on incremental tax revenues generated by the project rather than on the Town's general fund.