Redevelopment panel confirms TIF capture, pledges up to $20.5M for NewCold phase 3

The Lebanon Redevelopment Commission on Oct. 14 confirmed an amendment to the declaratory resolution for the NewCold Phase 3 allocation area and approved pledging incremental tax-increment financing (TIF) revenues to pay up to $20,500,000 in taxable economic development revenue bonds.

Commission members opened and closed a public hearing on the confirmatory resolution with no public comments and then approved the resolution by voice vote. The commission later approved a separate resolution pledging the Phase 3 allocation area's incremental real and personal property taxes to the bond payments.

Why it matters: The pledge would allow the city to back a portion of the developer's financing for the project by directing a share of future tax revenues from the phase 3 site to bond debt service rather than to the city's general tax rolls. That unlocks financing that developers use to build large industrial and logistics facilities.

What the commission heard: Staff said the phase 3 site is on the south side of Lebanon and described the multi-phase project. Baker Tilly presented a feasibility summary showing the bonds would be paid solely from TIF generated in the Phase 3 allocation area and noted the company is providing an additional guarantee as an extra layer of security. Baker Tilly said a portion of bond proceeds would be used for the project (about $16.76 million) and that roughly $3.5 million of capitalized interest would be set aside to cover interest during the period between bond issuance and the start of TIF generation. The firm's analysis projects TIF receipts that exceed the annual debt service in most years of the model.

NewCold's representative, Ted Butler, identified the expansion as the company's largest facility globally, saying it is expected to create about 200 jobs and involve capital investment north of $500 million, with construction completion targeted for 2027.

Commission action: Commissioners voted to confirm the amending declaratory resolution and to pledge the NewCold Phase 3 allocation area TIF revenues to bond payments. A later clerical amendment to correct a cross-reference in the NewCold resolution was also approved.

What was not decided: The council (city legislative body) will receive bond documents for introduction; the council will consider adoption at a future meeting. Specifics about the bond purchaser were presented as possibilities: Baker Tilly said the bonds are expected to be purchased by a third party and the company will provide a guarantee; the transcript did not identify the purchaser.

Documents and next steps: Staff said bond documents would be introduced to the city council on Oct. 27 and that officers of the commission are authorized to execute agreements and documents necessary to effectuate the pledge.

Ending: The commission approved the actions by voice vote and moved on to other agenda items.