The final readings over the ordinance that establishes funding for the major projects planned on Miller Drive near the Lifeplex Fitness Center, took place during Monday evening’s Plymouth City Council meeting.
As previously reported, the City Council and Redevelopment Commission are working with the Marshall County Economic Development Foundation on planning and developing few different projects, including an Early Childhood Learning Center and an Aquatics Center.
MCEDF Executive Director and CEO Jerry Chavez said these projects are expected enhance the quality of life and quality of place within the city.
Back in February members held the first reading over the “Ordinance Authorizing the City of Plymouth to Issue Its Taxable Economic Development Revenue Bonds and Notes: Series A, B & C.” When city council members met Monday evening, they held the second and third readings but not before receiving a bit of a refresher about the purpose of the ordinance.
Lisa Lee with the law firm ICE Miller spoke with members and said her role in this is to protect the city and serve as Plymouth’s bond counsel on the municipal financing side. She said the consideration and subsequent approval of the ordinance is the last step needed from the city’s financing side.
She refreshed the council about the specifics of the new market tax credit transaction that the city is entering into, reminding members that the Series A Bonds is a more traditional bond issue, where principal and interest is payable solely from the tax increment that is pledged. The city will be using TIF 3 revenue for this bond and the amount cannot exceed $3.5 million.
She said with the Series B bond, principal and interest will be paid for by the developer but it also includes upfront funding of a debt service reserve fund. The money for that will be gathered from lease payments from the city of Plymouth, Plymouth School Corporation and Ancilla College.
According to City Attorney Sean Surrisi, each entity will provide different amounts of money for their lease payment which will be proportional to the amount of time they’re permitted to use the Aquatic Center. Surrisi shared that right now, it’s looking like the City of Plymouth will be paying the most at about $144,000 a year so they will be allotted 40 hours a week.
The Plymouth Community School Corporation is anticipated to pay about $90,000 a year for their lease and will get about 17 hours a week. Ancilla College will be paying the least on their lease payment and they will be permitted about 14 hours a week.
Surrisi added that both of the other entities still need to officially sign their lease agreements.
Lee went on to explain that the Series C note is a draw note that will not need to be drawn upon as long as the projects remain compliant with particular specifications.
Lee said that the project is already established in an approved zone, so as long as they do not move, they’ll be fine in that regard. She added that the only other way they could be found noncompliant is if they added something to the project that is on the “sin list”.
Since no proposed aspects fall into that category, which includes bars, hot tub facilities and things of that nature, they should be safe. Though it is not intended to be drawn upon, the mechanism is in place just in case and it will be forgiven at the end of the 7-year compliance period.
When it came down to the vote on the final readings, the second and third readings passed with a vote of 6-1, with Councilman Gary Cook opposing both.
