The Industrial Development Board on Jan. 7 approved a final bond resolution authorizing the issuance of tax-increment, capital-appreciation bonds to fund part of the Rivergate Mall redevelopment project.

Chair read the consolidated motion, which authorizes a first amendment to the Rivergate Mall economic impact plan and the issuance, sale and delivery of the board's tax-increment revenue convertible capital-appreciation bonds (Rivergate Mall project, series 2026) in an aggregate principal amount not to exceed $17,000,000 in value at issuance — appreciating to a principal amount of $22,000,000 at the end of the accrual period. The motion was moved and seconded, votes were cast in favor and the motion carried; the chair recorded an abstention.

Developer Kate Girasch, representing Rivergate MP Holdings LLC (the applicant), told the board the team is "getting ready to close on this in about 37 days to be exact," and outlined project timing and components. She said two developers are preparing an application to the Metropolitan Development and Housing Agency (MDHA) for an 80-unit senior housing building, age-restricted to 55 and older and targeting 50%–80% area median income for the Nashville MSA. Girasch said the senior building's financing could close in 2027 if not funded in the 2026 round and estimated delivery in the 2028–29 timeframe.

Milani of D.A. Davidson summarized the financing terms and market plan, saying the team plans a limited offering to accredited investors and describing the bonds as capital-appreciation securities callable in five years. "We have structured this with a 1.3 times coverage," Milani said, and the group expects to release offering documents Jan. 14, market for two weeks, price Jan. 28 and close Feb. 12. Milani said market rates are "about 6 and a half percent," and noted tax-exempt status materially affects pricing (taxable would be roughly 2 percentage points higher).

Issuer's counsel explained the legal structure and risk allocation, stating the transaction is nonrecourse and that "the board has no liability, financial, legal, or otherwise to this." Counsel described how the TIF increment is monetized to fund reimbursements for public improvements rather than a direct grant and said Goodlettsville IDB and Metro Council will take parallel actions, with Metro Council review expected on Jan. 20.

Board members asked about a possible land swap tied to a Dillard's parcel (a timing mechanism, the developer said), tenant relocation (Guitar Center will be relocated into a standalone building; Dillard's and JCPenney remain), site-branding plans and whether space exists for a daycare operator. The developer said most small tenants had left by year-end and that the team had worked with realtors to help relocation, and affirmed openness to community input on branding.

The board approved the resolution, with the chair abstaining. The developer and financing team said they expect to complete the private placement and closing in February and begin construction soon after. Metro Council review was noted as the next formal municipal step.