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Manager: Honey Creek/Monroe Meadows TIF agreement coming; council to consider minimum service payment option
Summary
City manager said a TIF agreement tied to bonds from the port authority will come to council in about 30 days and explained how a minimum service payment affects developer coverage and city notification; council received information, no vote taken.
City Manager Jake Kitko told New Carlisle council that a Tax Increment Financing (TIF) agreement for the Honey Creek/Monroe Meadows development will be presented to council in about 30 days and explained the effect of a minimum service payment option.
Kitko said the port authority will sell bonds for the project and that the main city decision is whether to utilize a minimum service payment provision. He described a minimum service payment as a mechanism that can stabilize developer debt service if county auditor valuations come in lower than anticipated; the manager said that with a minimum service payment the city would be informed and the TIF administrator/port authority would still collect and remit funds per the agreement. Kitko emphasized that New Carlisle would not be on the hook financially for the developer's bond repayments.
Council asked clarifying questions about county auditor valuations and the effect on homeowner tax bills. Kitko said the county auditor will value properties and, if the auditor's valuation differs, the TIF administrator reconciles payments; the city is notified if a minimum service payment is used but is not financially responsible for the shortfall. The city attorney and bond counsel will coordinate final language when the agreement comes forward.
No formal action was taken; the manager said the TIF agreement and supporting documents will be provided to council when available.
