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Council questions proposed TIF cooperative agreement, retains concerns over bond assignment and reimbursement terms
Summary
Commercial Point council members told developers they are uncomfortable assigning tax-increment financing (TIF) revenues to a bond issuer through a cooperative agreement; members raised questions about indemnification, interest on reimbursements and how port authority bonds would interact with village administration of funds.
Commercial Point Village council members spent an extended portion of their meeting on a draft development agreement for the Addison Farms project and an accompanying draft cooperative agreement that would assign TIF revenues to a bond issuer.
Council members said the developer returned redlined contract language that generally accepted the village’s requested edits, but raised two remaining concerns: language that would allow a bond issuer or port authority to be assigned the village’s TIF revenues and a provision obligating the village to reimburse certain eligible costs plus interest.
Why it matters: under the draft cooperative agreement the bond issuer would receive assignment of TIF receipts, effectively giving the third party a first claim on those revenues. Council members said that departs from how Commercial Point has handled…
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