Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Increment Financing topic
No spam. Unsubscribe anytime.
EDC hearing explains developer-owned bonds, 80/20 TIF split and county revenue projections
Summary
Bond counsel and the developer told the commission the bonds would be developer-owned, function like a rebate of incremental taxes, be sized as a not-to-exceed $11,000,000 par amount over 25 years, and that the county could receive roughly $2.7 million total and about $111,000 annually starting 2031 from its 20% share of TIF increments.
Bond counsel Cam Starnes explained the EDC's role and the legal mechanics the commission would consider if it approves the bond resolution: hold a public hearing, authorize a bond resolution and document the issuance subject to county council approval. "Per Indiana law, you will be the the issuer of those bonds," Starnes said, emphasizing the EDC's procedural position.
Grant Deaton and Starnes described how the proposed developer-backed taxable revenue bonds are intended to operate: the developer would own the bonds (converting projected tax growth to a security) and the county would not front cash; the bond par amount is a 25-year not-to-exceed sizing that Baker Tilly modeled. Deaton told commissioners the TIF split would be 80% to the developer group and 20% to the county, and that Baker Tilly's schedule projects the county's 20% would total roughly $2.7 million over the 25-year term with an approximate minimum annual payment of $111,000 beginning in 2031.
