Lebanon council adopts $20.5 million bond to back NewCold Phase 3 expansion
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Summary
The Lebanon City Council on Jan. 12 approved a bond ordinance authorizing up to $20.5 million in taxable economic development revenue bonds for NewCold’s Phase 3 expansion; city staff and consultants said bonds will be repaid from TIF revenues and carry a company guarantee if tax increment falls short.
Lebanon’s City Council voted to adopt Bond Ordinance 2025-32 on Jan. 12, authorizing the issuance of taxable economic development revenue bonds not to exceed $20,500,000 to help finance NewCold USA’s Phase 3 cold-storage project.
City legal counsel Catherine Fanello summarized the ordinance and accompanying documents, and Baker Tilly analyst Annika Sineken presented an updated feasibility analysis. Sineken said the proposed bonds would be repaid from tax-increment financing (TIF) generated by the Phase 3 allocation area and showed an estimated amortization over 10 years with a current interest assumption of 7.16 percent. On the modeled assumptions, Baker Tilly reported about 115 percent debt-service coverage and noted the bonds are further secured by a company guarantee if the project’s tax increment is insufficient. “These would be protected and covered by the company,” Sineken said.
NewCold incentives manager Ted Butler described the company’s local footprint and plans, calling the Phase 3 project “NewCold’s single largest project to date globally” with an anticipated capital investment exceeding $500,000,000 and roughly 200 full-time positions in addition to construction jobs. Boone County Economic Development Corporation director Shelby Farthing urged council support, describing NewCold as an engaged community partner.
The ordinance authorizes bonds to be issued in one or more series and directs city officials to execute necessary financing documents. Council members asked staff for the updated feasibility and term-sheet documents, which Baker Tilly said would be distributed. After discussion, a motion to adopt the ordinance passed by voice vote.
The ordinance takes effect under Indiana law upon adoption; the financing structure will use TIF revenues from the Phase 3 allocation area and include the company guarantee described in the feasibility materials. Council did not provide a roll-call vote tally in the meeting transcript; members recorded their approval by voice vote. The city said bond closing is anticipated later in 2026.
