Council grants unanimous consent to consider bond issuance to redeem part of TIF 5 debt at Redstone Gateway

The City Council voted unanimously to consider and then approve an ordinance authorizing the issuance of taxable general obligation warrants (Series 2025C) to redeem a portion of the City—'s Tax Increment Financing (TIF) District No. 5 obligations at Redstone Gateway.

Finance Director Penny Smith explained the financing is tied to the TIF 5 district (Redstone Gateway) and that, based on the city—'s analysis, the district can support taking down $11,100,000 of principal to repay infrastructure costs previously advanced by the developer. Smith told the council the city solicited local bids and selected a local bank at 5.04 percent for the taxable bank borrowing.

"So the conclusion was that this district could afford an additional, we already have 3 on the books. This is an additional one, that the city put forth, and so we can afford to take down $11,100,000 of principal on that project," Smith said. Staff noted the infrastructure investment was originally paid by the developer (COPT) and that tax revenues from the developed property are expected to fund the repayment; the city recorded no direct general-fund cost in the material presented.

Why it matters: The action moves taxpayer-supported TIF fund flows into a formal bank borrowing to repay previously advanced infrastructure costs in the Redstone Gateway district. Council approved the ordinance after a roll-call that established unanimous consent to consider the item at this meeting; the measure passed on the same night.

The council took no separate action to appropriate general-fund dollars; the repayment is intended to be supported from TIF revenues and the transaction was presented as time-sensitive based on lender timelines.