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Commission considers pledging South Clarksville TIF to finance Main & Clark project
Summary
Officials reviewed a developer request for roughly $3.8 million in net proceeds, an illustrative $4.34 million bond size, and recommended using South Clarksville allocation area 1 to provide sufficient coverage and marketable security; commission moved to begin negotiation but did not finalize financing tonight.
Staff and the project consultant summarized the developer’s financing request for the proposed Main & Clark (Maine And Clark) mixed-use project. Sam Schroeder said the developer asked for $3,800,000 of net proceeds and, after customary issuance costs and a debt-service reserve, the illustrative bond size would be about $4,340,000. Schroeder recommended pledging South Clarksville allocation area number 1 because its assessment history and pledged minimum-taxpayer agreements make it the strongest near-term revenue source: “it’s gonna provide sufficient coverage for the project ... and in fact you’ll still actually have some other revenue remaining for any other needs down there in the area.”
Commissioners and staff asked practical questions about shortfalls in the early years if project assessments lag and possible mitigations (capitalizing interest, finding interim revenue sources or pledging additional TIF areas). Staff emphasized this action would start negotiations and not commit the town to final financing; next steps include drafting a project agreement and financing documents and routing the package through the economic development commission and town council.
