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Council approves TIF bonds and narrows tax phase for Franklin Street Lofts project
Summary
Evansville Common Council adopted an ordinance allowing taxable economic-development TIF bonds for the Franklin Lofts project and approved a resolution amending an 8-year tax phase to exclude the apartment units, a move that officials said does not create a city obligation.
The Evansville Common Council on Jan. 27 approved an ordinance authorizing issuance of taxable economic development tax-increment revenue bonds for the Franklin Lofts project and adopted a resolution narrowing an existing 8-year tax phase for Heritage Petroleum27s rehab to apply only to office space.
The council voted 9-0 to adopt Ordinance G 20 25-02, which authorizes the city to issue bonds and lend proceeds to Franklin Street Lofts LLC (or an affiliate) for a 54-unit rehabilitation project downtown. The council also voted 9-0 to adopt Resolution C 20 25-01, which amends the declaration of the economic revitalization area at 306 N. Seventh Ave. to limit the tax phase to Unit 1 (office space) while excluding Unit 2 (the apartments) and leaving the apartments to use tax-increment financing (TIF).
City outside counsel Nick Siriano described how the financing will work and emphasized the city will not be on the hook if the project does not perform. "This is not an obligation to the city. It's solely an obligation, of the property and of the project," Siriano said. He and developer representatives said the project represents roughly a $12,000,000 investment and would provide 54 market-rate apartment units.
Pat Hickey of the Evansville Regional Economic Partnership summarized the resolution. "This amendment modifies the existing 8-year tax phase, limiting it to Unit 1, which is the office space, while excluding Unit 2, which are the apartments," Hickey said, adding that the investment and employment commitments tied to Unit 1 remain in force.
Developer and project team members described the building as a large historic warehouse being rehabilitated and said the apartments will be market rate; council members asked questions about unit mix and project timeline. Mike Schottmeyer and Aaron Gabe, among developer representatives, said most units will be two-bedroom layouts and that half of the L-shaped warehouse has already been rehabilitated for Heritage Petroleum27s headquarters.
The ordinance establishing the new TIF allocation area and the resolution were presented as measures to enable the developer to purchase bonds secured by the project rather than create an obligation for the city.
Votes at a glance: Ordinance G 20 25-02 — adopted 9-0 (Councilwoman Mosby; Councilman Hieronymus; Councilwoman Carruthers; Councilwoman Kayla Lindsay; Councilman Brinkmeyer; Councilwoman Allen; Councilman Green; Councilman Johnson; Councilman Trockman: ayes). Resolution C 20 25-01 — adopted 9-0 (same roll call).
The project team, economic partnership and council did not identify specific local subsidy amounts in the discussion; the ordinance and resolution names and numbers were included in meeting materials.
