The Plymouth City Council members reviewed an ordinance this week that authorizes the issuance of taxable economic development revenue bonds to support an expansion project at Pretzels, Inc.
Heidi Amspaugh with Baker Tilly explained the process.
“They are bonds that the company would be purchasing and taking the backing on,” said Amspaugh. “The bonds would be payable from the tax increment generated from their expansion only.”
She added that the building is in TIF#3. Through the process, a new parcel was created to break out the building expansion and the personal property from the expansion into its own TIF area. That TIF is what is pledged to the bonds.
Amspaugh explained that for the first few years, Pretzels, Inc. would get 100 percent of the taxes they pay.
“As a form of a bond payment, they get their TIF revenues back to them and that would be a 14-year period. The following four years they would get 80 percent of the TIF back and then the remaining 20 percent would go to the Redevelopment Commission to be utilized in benefiting that TIF area.”
Amspaugh added that the estimate of TIF revenues is based on an assumption of assessed valuation generated based on comparable properties in the city which could be about $9.8 million.
No money is being put forth by the city for this bond issuance. The company is taking care of it.
The council members approved the second and third readings of the ordinance with a unanimous vote.
