The Culver Town Council members held the second reading of a bond ordinance when they met Thursday, December 28.
Town Attorney Jim Clevenger previously 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 for the Dunes Residential Program TIF Allocation Area No.1 and the Dunes/Beachview TIF Allocation Area No. 2. Property taxes levied and collected on taxable real property in those allocation areas will collectively go to 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 council approved the second reading with a vote of 3-2. Council members Bill Cleavenger, Rich West, and Sally Ricciardi voted in favor of the ordinance while council members Bill Githens and Bill Hamm voted “present”. The third reading of the ordinance will be held during the council’s next meeting January 9.
The council also approved several resolutions pertaining to the bond with the same 3-2 vote, as well as the first reading of an ordinance that designated the area for The Dunes project as an Economic Development Target Area.
