Marion council repurposes $1.4 million in urban renewal bond proceeds for local projects
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Summary
Council approved repurposing remaining proceeds (less than $1.4 million) from General Obligation Urban Renewal Bond Series 2019B — previously for airport improvements — to an exempt project in the Collins Road urban renewal area, preserving the bondholders' state tax exemption.
The Marion City Council on Nov. 20 voted to repurpose the remaining proceeds from General Obligation Urban Renewal Bond Series 2019B after the city sold the airport. City staff said the series had under $1.4 million left and had been intended for airport improvements; with the airport sale the funds must be reallocated to an exempt project listed for the Collins Road urban renewal area if the city is to maintain the bondholders’ state tax exemption.
City staff explained the repurposing would not represent new spending beyond previously planned uses for planning and design work on the aquatic center; the funds will be reallocated, not added, according to staff. The council held a public hearing with no in‑person comments and approved resolution 32,645 to enter into a general obligation urban renewal loan agreement and repurpose the bond proceeds.
A member of the public later asked in the second public forum whether the $1.4 million is additional funding for the aquatic center or reimbursement for money already spent; staff said the finance director could meet individually after the meeting to answer detailed questions.
Council advisories and the resolution direct staff to proceed with the reallocation consistent with state and urban renewal requirements; staff said they consulted legal counsel to ensure the reallocation meets the conditions for preserving the tax exemption for bondholders.