The Culver Town Council members discussed a bond ordinance when they met Tuesday, December 12.
Town Attorney Jim Clevenger discussed the ordinance which would authorize the Town of Culver to issue its taxable economic development tax increment revenue bonds in two series and approving and authorizing other actions.
“The Redevelopment Commission is expected to adopt an amending Declaratory Resolution to expand the area and redesignate a portion of the area for purposes of establishing a residential housing program and for purposes of Tax Increment Financing to be known as ‘The Dunes Residential Program Allocation Area No. 1’ and a Tax Increment Finance to be known as ‘The Dunes/Beachview Allocation Area No. 2’ and for all purposes of capturing incremental ad valorem property taxes levied and collected on taxable real property in those allocation areas which are going to be collectively the TIF revenues.”
The Redevelopment Commission and Culver Equities LLC have entered into an Economic Development Agreement where the company has agreed to make certain investments in the town, specifically located in the allocation areas.
The proceeds of the Series A bonds will be used for the purpose of financing a portion of the costs of the utility infrastructure project, which is most of the water and sewer lines and other start-up functions of utility infrastructure, and to pay the costs of issuing the bonds, and the proceeds of the Series B bonds will be deemed to be used for the purpose of financing a portion of the costs of the additional infrastructure project, like curbs and other infrastructure, and to the extent proceeds of the Series B bonds are available, a portion of the costs of the The Dunes Project.
The bonds for both Series A and Series B will not exceed $5.250 million and will mature no later than 20 years after the issuance of the bonds with a rate not to exceed 6.5 percent. The second series of bonds will not be issued until the developer decides to move on with the third and fourth phases of the project which will be market dependent.
The Culver Town Council approved the first reading of the ordinance during the December 12 meeting. The second reading will be held during the council’s next meeting Thursday, December 28.
