Lebanon EDC approves TIF-backed bond for NewCold Phase 3, cites roughly $500 million investment and 200 new jobs

The Lebanon Economic Development Commission voted to recommend that the City issue taxable economic development revenue bonds not to exceed $20,500,000 to support NewCold USA 3 PropCo LLC’s Phase 3 expansion in the city business park.

Commission members approved Resolution 20 25-1-01 after a brief public hearing and presentations from counsel and financial advisers. Catherine Fanello, public finance attorney with Dinsmore & Shohl, said the commission’s role was to review the project report and financing documents and determine whether the issuance would serve a public purpose and comply with the Economic Development Revenue Act and applicable Indiana law (Indiana Code 36-7-12). “The board’s job here is to review the project, the proposed financing…to determine whether it will result in the diversification of industry, the creation or retention of business opportunities, and the creation or retention of opportunities for gainful employment,” Fanello said.

Why it matters: Presenters described the Phase 3 site as an additional high-bay cold storage and logistics facility adjacent to NewCold’s existing operations. Ben (last name not specified), a city staff presenter, and counsel said the project would rely on a TIF (tax increment financing) pledge and not on direct city funds. Adam, representing Baker Tilly, the feasibility adviser, said the bonds would be payable solely from the project TIF and that the company would provide a guarantee as a backstop similar to earlier NewCold financings.

Key details and finances: Presenters described the overall project as about a $500 million investment in real and personal property. Company representative Ted Butler, incentives manager at Newcomb, said NewCold currently employs about 300 full‑time employees at the existing site and that Phase 3 would add roughly 200 jobs. Fanello and Baker Tilly outlined that the bond issue would be taxable economic development revenue bonds issued under Indiana Code 36-7-12; net bond proceeds intended for equipment purchase and construction were presented as roughly $16.76 million, with total par not to exceed $20.5 million to cover capitalized interest, bank fees and issuance costs. Baker Tilly noted approximately $3.5 million would be set aside from proceeds to cover interest until TIF receipts begin to flow.

Project structure and limits: Counsel and the financial adviser emphasized the city would not pledge general funds; the bonds would be repaid from incremental property taxes generated by Phase 3. Baker Tilly said the repayment structure is intended to have level debt service once TIF flows begin, with any excess TIF accelerating principal paydown; the stated maximum term discussed was 25 years unless paid earlier.

Public hearing and vote: The commission opened and closed a public hearing with no substantive public objections recorded in the transcript. A commissioner moved to approve the resolution and another commissioner seconded. The motion was approved after an oral vote of “aye”; the transcript does not record a roll-call vote or individual vote tallies.

Outlook: The commission approved and recommended the forms of the trust indenture, financing agreement and a draft economic development agreement to the City Council and authorized officers to take actions necessary to effectuate the resolution. Staff said a bond ordinance for introduction at the city council will follow.

Ending: The project will proceed to the City Council for formal introduction of a bond ordinance and further action; the commission’s approval sends the financing documents and report forward for that next step.