Harmony EDA agrees to one-year extension for Twin City Trimmers project in exchange for $6,800 payment

The Harmony Economic Development Authority voted Oct. 6 to extend the completion deadline for a TIF-backed industrial park development by Twin City Trimmers to Dec. 31, 2023, in exchange for a one-time payment of $6,800 to cover lost tax-increment financing (TIF) revenue.

Chris Giesen, who presented the item to the board, said the lot sale completed in 2021 and site grading has been done but the building itself has not been constructed because of material-cost increases, shortages of builders and general inflation. The original development agreement required building completion by the end of 2022 to ensure TIF collections would repay the EDA’s benefit.

Jeff O’Connor of Twin City Trimmers provided the project update to the board; the EDA and O’Connor agreed that an extension was appropriate if the developer reimbursed the EDA for the estimated lost TIF revenue for the year. The board approved the extension on a motion by Andy Batstone, seconded by Steve Donney; the motion carried by unanimous voice vote (tally not specified).

The board’s action preserves the underlying TIF arrangement while giving the developer additional time to start construction. The development agreement remains in place with a new completion date of Dec. 31, 2023, and the recorded condition that the $6,800 payment be made as part of the extension terms.

Next steps: the EDA will record the amended development agreement and monitor progress on the site. No additional specifics on revised construction timelines were provided at the meeting.