Evansville redevelopment leaders preview citywide bonds to fund East Side fire station and parks

At its Sept. 17, 2024 meeting, the Evansville Redevelopment Commission reviewed a proposal from Robert Gunther of the comptroller’s office to issue citywide redevelopment district bonds to fund a new East Side fire station and separate park projects.

"It's a fire station that will improve the timing of making fire calls," Gunther said, describing a roughly 13,000-square-foot facility with an estimated construction cost between $7.5 million and $8 million. He said the city is seeking to take advantage of increased assessed values to issue bonds without increasing tax rates.

Gunther told commissioners the transaction would use citywide redevelopment district bonds — not a standalone public-safety tax — and that state redevelopment statute provisions allow public-safety projects to be funded through redevelopment districts. He said the bonds would be repaid through general property taxes within the redevelopment district rather than by a new, separate levy.

Officials named likely transaction advisors: Dennis Otten as bond counsel (Bose McKinney & Evans), Landon Bowen as underwriter (Baird) and Jennifer Hudson as financial adviser (LWG CPAs). Gunther said Hudson is familiar with Evansville’s finances and that staff believes the proposed issuance is within the redevelopment district’s bonding capacity.

Commissioners and staff discussed potential impacts to existing Tax Increment Financing (TIF) revenues and the mechanics of keeping tax rates steady while leveraging higher assessed values. One staff member warned that allowing rates to drop could reduce TIF revenue and make it harder to cover existing debt service on previously issued bonds.

Location details remain preliminary. Staff described the possible East Side site roughly between State Road 41, Green River Road and Lloyd but said a final site has not been selected. Gunther also noted the project could include combined uses — for example, space for an ambulance bay or a shared facility configuration — and that final scope remains subject to later hearings.

A commissioner raised concerns about moving a ladder truck from downtown, noting a past fire that consumed multiple buildings and arguing that downtown response capacity could be affected. Gunther offered to invite Chief Knight to a future meeting to address deployment and coverage questions.

Staff outlined the schedule for the bond approvals: a preliminary hearing with the commission on Oct. 1, 2024, followed by a confirmatory hearing on Oct. 15, 2024; any issuance would also require City Council approval. Gunther said more detailed bond documents and schedule materials will return to the commission at those hearings.

Votes at a glance: the commission approved the Sept. 4 meeting minutes (motion to accept the minutes as presented; mover and seconder were recorded on the transcript as unidentified commissioners) by roll call (Commissioners Botte, Neeson, McAllister, Wafford voted "Aye"). The commission also approved the accounts payable voucher (motion and second recorded on the transcript as unidentified commissioners) by roll call (Commissioners Vaught, Neeson, McAllister, Waltham voted "Aye").

Next steps: staff will bring bond documents and more specific site and scope details back to the commission at the Oct. 1 preliminary hearing and the Oct. 15 confirmatory hearing; City Council approval will be required before any bond sale.