Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development Tif topic
No spam. Unsubscribe anytime.
St. John council approves TIF-backed revenue bonds for Jewel/Alchemist project
Summary
The Town Council adopted Ordinance 18-64 on second reading, authorizing economic development revenue bonds payable from tax-increment generated by the Jewel/Alchemist site; presenters said the town bears no obligation if incremental revenues fall short.
The Town of St. John Town Council on April 23 approved Ordinance 18-64 on second reading, authorizing the town to issue economic development revenue bonds to help fund the Jewel/Alchemist commercial redevelopment in the St. John Economic Development Area 1.
Town attorney Tom Everett of Barnes & Thornburg told the council the bonds “would be payable solely from the incremental tax revenues from the project.” He said the base assessed value and existing taxes would continue to flow to the overlapping taxing units and “no other funds or taxing authority of the town are pledged to these bonds.”
Andy Mauser of Baker Tilly, the town’s consultant, provided a fiscal summary of the parcel that is the project site. He said the site’s current assessed value is roughly $1.7 million and “does generate about $28,000 a year in annual taxes,” of which about $6,000 comes to the town. Mauser said the proposed investment would raise assessed value into the $10 million–$15 million range and could increase annual taxes to “somewhere in the range of $200,000 to $300,000.”
Council members and the developer’s supporters described the project as an investment in a long-vacant property. Wayne Pandina said developers planned to invest about $31 million in site improvements and road/access work; council members noted the developer or bond purchaser, not the town, would be responsible for repaying bonds if TIF revenue is insufficient.
The ordinance passed on a recorded voice vote of 4 to 0. Council members did not record individual yes/no votes in the transcript; the clerk announced “Motion carries 4 to 0.”
Why it matters: Council members framed the measure as a conventional use of tax-increment financing to incent redevelopment of a vacant commercial property. Supporters said the incremental tax revenue paid during the TIF period would be used to service the bonds and ultimately return the increased value to the tax base once obligations are retired.
What was not decided: The council approved the bond authorization and related actions; the transcript shows no amendment to the financing structure and notes that any shortfall would be the developer’s responsibility, not the town’s.
Votes at a glance: Ordinance 18-64 (second reading) — adopted, vote: 4–0.
