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Council approves resolution to issue up to $2.35 million in TIF bonds for Tupelo Commons Phase II
Summary
The council authorized issuance of tax-increment limited bonds not to exceed $2,350,000 for infrastructure reimbursement at the Tupelo Commons development; developer reimbursement will be limited to the TIF bond amount and the project previously received $650,000 from the original issue.
The Tupelo City Council voted to authorize a negotiated sale and issuance of tax-increment limited bonds for the Tupelo Commons Phase II project, with a principal amount not to exceed $2,350,000.
Council discussion during the meeting described the bonds as reimbursement for public infrastructure the developer installed at the Tupelo Commons retail area. A council speaker said an earlier series paid $650,000 to a developer under the original TIF authorization; the newly authorized series would make available the remaining $2,350,000 permitted under the TIF program for the area. "He will also, do spot repairs to those roads and also give the final lift of asphalt on those roads, before we will, reimburse them for these expenses," the speaker said, describing the developer's expected finishing work in the district.
Staff said the reimbursement will be limited to the amount of the bonds and noted that the TIF plan had been extended for an additional 10 years to allow the reimbursement. The council also discussed that revenue already accumulated in the district would reduce the time needed to repay these bonds.
The council moved and seconded the resolution and approved it by voice vote. The transcript does not contain a roll-call vote or a detailed repayment schedule in the record; the record records the principal "not to exceed $2,350,000" as the cap for issuance.
Why it matters: The TIF bond authorization makes funds available to reimburse the Tupelo Commons developer for public infrastructure, accelerating final street and drainage work in the area while limiting the city's direct indebtedness to tax increment revenues generated within the TIF district. The bond authorization also reflects a previous commitment and an extension of the TIF plan to enable reimbursement.
