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Board increases TID municipal revenue obligation to DPML 95th Street LLC to $10.06 million
Summary
The Village Board approved increasing the municipal revenue obligation (MRO) for Tax Incremental District No. 10 to DPML 95th Street LLC from about $6.2 million to $10,056,799 to cover additional eligible project costs tied largely to Kessel Court construction; staff said the obligation is paid from the increment generated by the property.
The Village Board voted to increase the municipal revenue obligation to DPML 95th Street LLC (TID No. 10) to $10,056,799 to account for additional eligible project costs submitted by the developer. Staff explained the district was created to encourage industrial redevelopment of the former power-plant site and that the additional eligible costs (approximately $6.2 million) are largely associated with Kessel Court construction and related site work.
Finance/economic-development staff member Cathy said the MRO is repaid from tax increment created by the property (typically 50% of value created, minus administration), and noted interest on the obligation is either 8% or prime-plus-2%, whichever is less. Trustees asked about the repayment schedule and acknowledged the possibility the payback period could run as long as 20 years; the board approved the increase by voice vote.
