City council looks to refund
redevelopment district tax
By Heather Mangold
City
Editor
"It's a $2 million no-brainer," said Robert Bauman,
West Lafayette city attorney.
Bauman was referring to a new plan proposed by
the West Lafayette redevelopment authority that would save West Lafayette
taxpayers roughly $2 million.
The West Lafayette redevelopment commission will
vote on the plan next week. The plan would approve the execution of
a lease with the authority for the lease of the acquisition of the Wabash
Landing parking garage. Within the approval, the proceeds of the sale
would be used to refund the commissioner's redevelopment district tax
increment revenue bonds of 2000.
The plan, which would refinance the Wabash Landing
parking garage, was something that was expected by city officials from
the beginning, said Bauman.
He said city officials have decided to refinance
at this time because of the success of Wabash Landing and current low
interest rates.
For safety's sake, a back up plan has been established.
A property tax reserve would be created, with approval
of the plan equaling the amount of one year's bond payment for the project.
"It's there as a fallback," said West Lafayette
Director of Development Josh Andrew. "If something were to happen down
there such as an economic downturn, or if the TIF (tax increment financing)
won't cover it, we have something to fall back on."
At this time, members of the commission are confident
in further success with the project.
"We're in a position now that we'd never have to
fall back on that property tax back up," said Stephen Belter, president
of the commission. "I know I feel positive about it."
Andrew said that the department of development
created a conservative estimate for the project. He said, normally cities
dealing with large projects like this would develop a 125 percent coverage
plan. In this case, however, his department worked to create a plan
at135 percent.
If commissioners approve the new plan next week,
then it will be sent to the West Lafayette City Council for a first
reading at the regularly scheduled council meeting. If passed by council
members, a second reading will follow in October. The second reading
could lead to the passage of the ordinance that would save taxpayers
approximately $2 million.
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