Mt. Vernon Register-News

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August 2, 2010

Council moving forward with TIFs

By TESA CULLI tesa.culli@register-news.com

MT. VERNON — The city council is taking its first statutory steps to make the East Side Tax Increment Finance District and the West Side TIF a reality during its meeting tonight.

“The council will be scheduling a public hearing for the two TIFs,” City Manager Ron Neibert said. “It’s a statutory requirement for the city to take comments on the proposed development plans for each district. (The plans) are on file at the city clerk’s office for public inspection.”

The hearings are set for Sept. 20, with one at 6:30 p.m. and the other hearing at 6:45 p.m.

The TIF development plans outline the types of development expected for the area and how the areas comply with statutory criteria to establish a TIF. The West TIF is being developed as an industrial park conservation area and the East TIF is being developed as a redevelopment project area. In addition, the plan establishes a plan for the 23 year life of each TIF and highlights some of the activities proposed from the generated revenues, Neibert said.

The West TIF is to be roughly located in the area south of Wal-Mart up to Sparrow Lane, and then near Ambassador, with an east boundary of Interstate 57.

The budget for the West TIF is a total of $44 million over the 23 years. Public works or improvements are estimated at $17 million; property assembly costs at $3.2 million; site preparation at $2.1 million; tax district capital costs at $2.4 million; job training at $1 million; interest costs incurred by developers at $15 million; planning, legal and professional services at $1 million; general administration at $500,000; and $2.1 million for contingency.

The East TIF is to be roughly located with a northern border near the Drury Inn, go down Mateer Drive, include the western side of South 42nd Street and continue south towards the new interchange on Veterans Memorial Drive.

The budget for the East TIF is a total of $18.9 million over the 23 years. Public works or improvements are estimated at $6 million; property assembly at $3.5 million; building rehabilitation at $2.6 million; relocation at $200,000; taxing district capital costs at $100,000; job training at $100,000; school district increased costs $10,000; interest costs incurred by developers at $5 million; planning, legal and professional services at $400,000; general administration at $200,000; and contingency costs of $800,000. Municipal financing costs such as interest expense, capitalized interest and cost of issuance of obligations are not quantified in the estimated budget.

In other business, the council will:

  • Present two police department awards;
  • Approve the motor fuel tax funds audit for year 2009;
  • Hold a first reading on Downtown TIF finance agreements;
  • Consider a resolution approving an agreement with the Norfolk Southern Railroad for crossing work;
  • Consider a resolution granting consent to a Lake Miller Leaseholder Lori D. Hayes to obtain a mortgage; and
  • Issue a proclamation in observance of National Night Out.

The council will meet at 7 p.m. tonight at the Rolland Lewis Community Building at Veterans Park.

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