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Redevelopment commission confirms Franklin Street Lofts allocation area, pledges 90% of TIF to developer bonds
Summary
The Evansville City Redevelopment Commission voted to confirm an allocation area for the Franklin Street Lofts project and approved a companion resolution pledging 90% of future tax increment to retire developer-purchased bonds; the commission also approved routine minutes and accounts payable vouchers.
The Evansville City Redevelopment Commission voted to confirm an allocation area for the Franklin Street Lofts project and approved a companion resolution pledging 90% of future tax increment revenues to pay bonds that will be purchased by the project developer, the commission said during a public hearing at the meeting.
The resolutions — numbered in the packet as Resolution 25 ERC-02 (confirmatory/declaratory) and Resolution 25 ERC-03 (TIF pledge) — complete the commission's local approvals after earlier action that created the allocation area. The measures clear the way for the developer to use tax increment financing (TIF) from a portion of a parcel in the Jacobsville redevelopment area to assist with project financing.
Nick Siriano, staff to the commission, opened the public hearing and introduced outside advisors on the line. Dennis Otten, identified as bond counsel with Bose McKinney of Indianapolis, was on the call. Ben Asad, who said he heads a public finance group, described the structure of the proposal: "As you might know, this process contemplates an economic development revenue bond that will be purchased by the developer. So there's gonna be no backing from the city, other than the tax increment that's pledged." Bob Swentz, the city's financial adviser with LWG, was also available to answer financial questions, staff said.
Under the approved pledge resolution, 90% of incremental tax revenues generated within the Franklin Street Lofts allocation area will be dedicated to paying debt service on the bonds; 10% will accumulate and remain available for the commission's discretion, the staff presentation and resolutions state. Staff and outside counsel described the allocation area as a small, single-parcel footprint within the Jacobsville redevelopment area and said similarly targeted, parcel-level TIF allocations have been used previously for other projects.
At the meeting the commission placed the resolutions for a vote after the public hearing. A motion to approve Resolution 25 ERC-02 carried, and a subsequent motion to approve Resolution 25 ERC-03 also carried. Commissioners recorded their votes on the record when their names were called.
The meeting also approved routine business: the minutes from the Jan. 22 meeting and the accounts payable vouchers. Staff noted one line item — a $1,300 appraisal paid to David Matthews for property at 301-309 North Main — was requested by the commission to determine value for future plans. Staff also described a progress payment for work to reconfigure Walnut Street in front of the DoubleTree and Starbucks and move parking to Sixth Street as part of a Complete Streets adjustment.
No public speakers registered substantive objections during the hearing, and no amendments to the resolutions were proposed at the meeting. With the two resolutions approved, staff may proceed with the administrative and financing steps described in the packet and by bond counsel; the commission retains the 10% incremental revenue reserve and oversight of the allocation area.
Less-critical items and the meeting adjourned afterward.
