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Committee hears $27M‑ish River West TIF lease-rental bond plan; staff list neighborhood projects
Summary
Redevelopment staff and bond counsel described a lease-rental bond resolution for the River West TIF area, with a maximum authorized principal of $33M and an anticipated issuance of about $27M to fund Coal Line phase 3, a Rumm Village neighborhood center renovation, site acquisition for a Near West Side park, infrastructure for Portage/Elwood redevelopment and other neighborhood infrastructure.
Deputy Director Joe Molnar and bond counsel Tom Everett presented a lease-rental bond plan to the committee that would allow the redevelopment authority to issue bonds secured by lease rental payments from the redevelopment commission, with River West TIF revenues pledged to pay lease rentals.
Everett summarized structure and timing: the bond authorization would not exceed $33,000,000 in principal; the city currently anticipates issuing roughly $27,000,000. Baker Tilly prepared an analysis projecting that River West TIF revenues would cover lease-rental payments; a tax backup would be included only as a market device to reduce interest costs, Everett said. The timetable presented estimated a bond sale in September and closing in early October.
Projects identified for the bond proceeds include Coal Line phase 3 (an extension to the MLK Jr. Dream Center, with federal funding covering about 80% of construction costs), renovations to the former William Penn building for a Rumm Village neighborhood center (in partnership with Boys & Girls Club), site-acquisition funds for a Near West Side neighborhood park, infrastructure work at remediated commercial sites (Portage/Elwood), support for low-income housing infrastructure near Old Cleveland Road, and design funding for a Morris Performing Arts Center parking garage.
No formal vote occurred on the bond at this committee meeting; staff said the lease resolutions have been approved by the redevelopment commission and authority and that the item will return for fuller review and questions at the next meeting.
