Clarksburg council approves first readings for three TIF districts and discusses a $2 million city pledge

Clarksburg City Council approved first readings Thursday on three ordinances to amend or create tax-increment financing districts and to authorize escrow and disbursement agreements related to redevelopment projects.

Council considered an amendment to the existing City of Clarksburg Redevelopment District No. 1 and first readings to create Redevelopment District No. 2 (Walden project) and No. 3 (Golf Building). During debate, council members asked for clarity on the TIF fund balance, the percentage distribution in the escrow/disbursement agreement and whether the timing of city disbursements could be reweighted. One city attorney explained the ordinance’s current effect is to approve an escrow and disbursement agreement in substantial form while allowing signers some discretion for minor, spirit-of-the-ordinance changes before final execution.

On the Walden redevelopment item, staff and legal counsel said the city’s role includes delivering an escrow/disbursement agreement and that the economic development agreement contemplates a $2,000,000 city contribution to support the project. Counsel advised that the financing structure includes developer-placed bonds and that the developer is expected to assume bond payment risk; the bonds would not impose direct city debt service under the proposed structure. Several members asked that the agreement be in near-final form before the second reading and public hearing so council could see disbursement percentages and allocation timing.

Council approved the motions to proceed with first readings on the TIF items. Staff committed to finalize the escrow/disbursement details and present near-final documents before the next reading so council could consider any substantive amendments. No final signature or transfer of funds occurred at the meeting; next steps include preparing the near-final agreement and a public second reading before any executed disbursement.