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Lyon County moves to end two Elanco TIF commitments, keeps others for FY2019
Summary
Following a company sale and legal review, Lyon County supervisors voted to terminate tax‑increment financing (TIF) payments tied to two non‑operational Elanco sites (2003 and parts A/D of 2010 agreements) and continue limited payments for the main campus for FY2019 while preserving options for a negotiated replacement agreement.
Lyon County’s Board of Supervisors moved in December 2018 to stop tax‑increment financing (TIF) disbursements tied to two Elanco sites that the county concluded were no longer in active operation at the time of a corporate sale.
County counsel and outside bond counsel reviewed the county’s three Elanco development agreements (a 2003 agreement and multiple parts of a 2010 agreement) after the property owner changed. Attorney John Danos (Dorsey & Whitney) advised the board that two site agreements — the 2003 horse‑serum facility agreement and the A & D portions of the 2010 agreement related to a cattle facility — were in breach of their terms because the facilities are closed or no longer operated by Elanco. The county therefore terminated the TIF payments tied to those agreements beginning with FY2019.
The board decided to continue TIF payments tied to the 2010 B & C portions that relate to the main campus for the 2018‑2019 fiscal year because that campus remains occupied and operations were being leased back to the former owner pending closing. The board directed county attorneys to send formal notice to the company and to seek a written response by early December; the county also authorized a subcommittee and counsel to negotiate alternative agreements with any incoming owner to preserve county economic development objectives.
What this means: the county certified taxes and adjusted its TIF obligations by board action in late 2018. The board’s action reduces the county’s near‑term TIF disbursements for the closed sites, preserves payments for the occupied main campus in FY19, and leaves space for renegotiation of development agreements with the new owner.
Provenance: attorney briefing and board votes in November and December 2018.
