The Culver Redevelopment Commission members and the Culver Town Council members recently reviewed the Economic Development Agreement between the Town of Culver and Culver Equities LLC concerning The Dunes housing project.
The agreement represents all previous discussions with developer Culver Equities LLC and the relationship with the company and the Town of Culver which includes the bond issuance and the TIF areas.
The agreement details that the Town of Culver is contributing $1.3 million in READI grant funds toward the water and sewer infrastructure of the development.
It also explains that the bonds for The Dunes project will occur in two separate issues. Series A bonds will be an aggregate principal amount not to exceed $3,460,000 and include the READI matching grant. The Series A bonds will be used for the infrastructure of the first two phases of the housing development which will include approximately 228 units. The Series A bonds will have a term not to exceed 20 years from the date of issuance at a rate of 6.5 percent. The Series B bonds will be in an aggregate principal amount not to exceed $1.575 million and used to fund the costs of the public infrastructure project for the third and fourth phases of the project which is approximately 73 units. The Series Bonds will have a term ending on a date not later than 20 years from the date of issuance at a rate of 6.5 percent.
The Series B bonds will not be issued until the first two phases of the project are complete or if the company has not started construction on the third and fourth phases of The Dunes project by June 30, 2029. If the company sees no economic or market conditions favorable for construction, then the Series B bonds will not be issued.
The town shall not pledge to the repayment of the bonds with tax revenues or other funds. The Culver Redevelopment Commission shall use its best efforts to pledge, subject to further proceedings required by law 80 percent of the TIF Revenues received with respect to the project which may pay the principal of the bonds and annual administration costs related to the administration of the TIF revenues.
The Culver Redevelopment Commission approved the agreement in a specially called meeting Tuesday, January 23 and the Culver Town Council approved the agreement during their regular meeting Thursday, January 25 with a vote of 4-1 with Councilman Bill Githens opposed to the agreement.
