Council hears first-reading of two TIF bond ordinances for Merit project infrastructure

Bob Clutter, speaking on behalf of the redevelopment commission, presented two bond ordinances tied to the Merit project, a mixed commercial and development site at the southwest corner of a named corridor. He said the redevelopment commission had established a TIF allocation area and the economic development commission authorized issuance of economic development bonds to pay for on-site infrastructure including construction of Lincoln Road, reconstruction of County Road 350 West and drainage work. "The most important thing about this especially from the council's perspective is these are TIF-only bonds. There's no county obligation," Clutter said.

Clutter described two separate bond issues: a depreciable personal property TIF bond to be purchased by the project's contract purchaser and a real property bond (maximum amount $4 million) to be purchased by a different investor; he said the personal property bond maximum is $1.7 million. He noted the redevelopment commission will finalize a taxpayer agreement at its Dec. 19 meeting and the council should expect a second reading of the ordinances in January.

Council members asked clarifying questions about debt service, the mechanics if TIF collections fall short and the absence of county liability. Clutter said the bondholders absorb deficiencies if revenues are insufficient. The council did not vote on the ordinances at first reading but acknowledged receipt and set the item for a second reading next month.

Next steps: Redevelopment commission to adopt taxpayer agreement Dec. 19; council second reading and possible vote in January.