Committee advances revenue-bond step for Foundry on 3rd developer agreement

The Finance Committee approved a step toward issuing a tax-increment–backed revenue bond tied to the Foundry on 3rd Street developer agreement on Aug. 25. Staff explained the bond provides the developer assurance needed to secure permanent financing while preserving that repayment comes from TID increment rather than the general fund.

Patrick explained that development agreements “all will have a bond issuance that attached to them because they are a pay goad style of, TIF incentive,” and that the bond’s purpose is to give a developer assurance to lenders. Committee members asked about whether the project met minimum assessed-value and construction-cost thresholds; staff said those minimums have been reviewed and are being met, and that the first reimbursement payment could occur this year based on recent tax bills.

Members discussed how a revenue bond works with a TID’s expenditure period and the city’s authority to close a TID early; staff noted closing a TID before retiring debt requires city funding of outstanding debt and that contracts establish developer obligations. After questions about current tax-base numbers and timing, the committee voted to approve the city’s step on the resolution that will go to council.