Maran council adopts TIF 20 ordinances and authorizes interim Star Bond notes to meet state deadline

The Maran City Council on Sept. 24 moved forward with a package of redevelopment measures, approving ordinances to establish Tax Increment Financing District 20 and related amendments and authorizing interim financing tied to the city's Star Bond project.

Council members voted unanimously to adopt Ordinances 3974, 3975 and 3976 to create the TIF 20 redevelopment plan and project area, and approved Ordinances 3977 and 3978 to remove several undeveloped parcels from existing TIF districts so they could be included under the new plan.

The measures were accompanied by a resolution (2024-117-17) consenting to a disbursement agreement under the city's master developer agreement for the Star Bond project; staff said the disbursement would recognize roughly the first $16 million in costs once bond proceeds are issued and those costs are verified by the city's attorneys.

During discussion of Item 6F, council introduced Sean Flynn of Gilmore & Bell, the city's bond counsel. Flynn described the immediate step before the council as an authorization to issue developer notes rather than a final bond issuance. "All we do is service bond issues to cities, counties, school districts," Flynn said, introducing his role. City staff explained the notes would be interim instruments issued to meet an Oct. 2 deadline set by the Illinois Department of Revenue and are expected to be refunded by bonds issued later.

Cody, a city staff member who presented the package, said the notes would be payable only from Star Bond revenues and would not involve the city's general fund. "We're never talking about general funds," Cody said. He and Flynn explained that the structure contemplates 85% of Star Bond revenues being used to repay the notes and 15% remaining with the city.

The ordinance authorizing the notes (Ordinance 3979) limits developer reimbursement claims to eligible costs the developer has submitted and that the city's attorneys are verifying. Staff described a cap for the interim notes at $7 million and said the action places the necessary accounting structure in the city treasury and with a trustee so the city can meet state requirements for committing the revenue.

Council member questions focused on administrative details such as the trustee's corporate trust office location and how invested funds will be valued if held temporarily. Flynn and city staff explained valuation standards and said the trustee arrangements and fund structure are spelled out in the ordinance and related documents; staff noted the trustee would be required to turn over revenues to the trustee by Oct. 15 as described in the materials.

All motions related to the ordinances, the resolution and the sales-tax revenue notes passed with unanimous roll-call votes by Commissioners Patton, Barwick, Webb, Stan and Mayor Absher.

What happens next: staff and the city's bond counsel will continue to verify eligible developer costs and complete steps toward formal bond issuance, which city documents indicate would refund the interim notes once final bonds are sold.