COLUMBUS, Ind. — The city’s redevelopment commission has given its final approval on a resolution necessary to help fund a mixed-use development downtown.
The Columbus Redevelopment Commission passed a confirmatory resolution Monday amending the Central Allocation Area to create a new Tax Increment Financing (TIF) district for the project.
This multifamily urban grocer project is estimated to cost about $40 million. The commission has committed to contribute “land, cash and a bond to be valued at some $11.8 million” to the project. City officials have said in the past that the development’s property tax dollars will go to repay the bond. The developer, Flaherty & Collins Properties, will pay about 70% of the project cost.
The company has also committed to a guarantee that new property taxes generated from the project “will be a minimum of $500,000 a year for 25 years.” Bruce Donaldson, who is a bond counsel with Barnes & Thornburg, said earlier this year that the new standalone TIF is needed to facilitate that 25-year guarantee, as the Central TIF area is set to expire sometime in the mid-2020s or ‘30s.
The redevelopment commission approved an initial resolution amending the Central allocation area in February. The matter then went to plan commission, which sent it forward to city council with a favorable recommendation. City council, in turn, approved the resolution, and the matter returned to the redevelopment commission for a confirmatory resolution and public hearing on Monday.