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Redevelopment panel approves $10 million IFA-backed TIF bond for two housing projects
Summary
The commission approved a resolution to issue tax increment revenue bonds to support infrastructure for the Garrison Fraser (≈210 units) and Woodland Crossing (≈140 units) housing projects, following staff testimony that the total infrastructure cost is about $12 million and an IFA loan will cover $10 million.
The Elkhart Redevelopment Commission voted Jan. 13 to authorize tax increment revenue bonds to finance infrastructure for two planned housing developments on South Main and at Woodland Crossing.
Mike Huber, development services director for the City of Elkhart, told commissioners the city was awarded a $10,000,000 loan by the Indiana Finance Authority through the residential housing infrastructure assistance program and that the total cost of both infrastructure projects is “estimated to be approximately $12,000,000.” He said funding from the IEDC’s LilyReady 2 blight elimination program will fund a $2,000,000 gap.
Staff said the IFA will act as purchaser of the bond, that the bond will be structured as a draw so obligations match final project costs, and that a Baker Tilly financial analysis in the meeting packet shows the South Consolidated TIF can accommodate payments while maintaining healthy coverage ratios. Huber said the city will return to the council in February for a related resolution and anticipates closing on the bond in early March.
The commission held a public hearing on the bond, opened the floor and recorded no public comments before moving to approve the bond resolution and a separate appropriation of bond proceeds; both motions passed by voice vote.
Next steps include negotiation of final closing documents between the city and the IFA and follow-up approvals by the council and other local bodies, as staff outlined at the meeting.
