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Parke County adopts ordinances to finance bank-building rehab with $3 million loan and $65,000 annual TIF backstop
Summary
Commissioners approved ordinances authorizing a roughly $3 million loan to fund rehabilitation of a downtown bank building and adopted a $65,000 annual TIF revenue pledge as a repayment backstop; paperwork and appropriation language were amended and adopted the same day.
Parke County commissioners on May 29 approved ordinances to authorize borrowing for the redevelopment of a downtown bank building and to set aside an annual TIF (tax-increment financing) pledge as a repayment backstop.
S3, chairing the meeting, said the county would cap the loan at $3,000,000, deposit proceeds into a separate project fund and repay principal and interest from TIF revenues. "We're actually only going to borrow $3,000,000. I capped it at 3," S3 said, adding skepticism about the fiscal analysis provided by Baker Tilly.
Commissioners also approved ordinance 20-26-11, which S3 described as a revenue pledge authorizing a $65,000 annual appropriation to backstop repayments if TIF receipts fall short. The board considered and adopted that ordinance on the same day. The board then amended and adopted ordinance 20-26-13 to reflect the appropriated amount tied to the loan paperwork.
S3 outlined financing terms discussed with 1st Financial Bank for the loan: roughly 4.62% interest and a 10-year amortization were cited during the meeting as the current working terms; closing was described as scheduled. S3 said loan proceeds would be held in a separate county account and spent as bills are presented for the project.
Redevelopment staff reported ongoing scoping work on mechanical systems, elevator, floor and wall coverings and other construction needs; an abatement specialist will review the site for hazardous materials before further work proceeds. The redevelopment commission had previously approved the project; the fiscal body (the county council/commissioners acting in fiscal capacity) completed the appropriation and ordinance steps at this meeting.
What happens next: the county will close financing per the bank schedule, draw down project funds as work proceeds and deposit TIF receipts into debt-service accounts to cover principal and interest before any remaining TIF funds are returned to the redevelopment general fund for other uses.
Votes and formal actions: the board moved, seconded and approved the additional appropriation and the two ordinances (same-day consideration and adoption). Specific roll-call tallies were given as voice votes during the meeting.
