$2.9 Million Owed on StoneGate Arts & Education Building
BEDFORD - JULY 12, 2022 - A total of $2.9 Million is still owed on the StoneGate & Arts Education building. This is the largest debt incurred by the Bedford Redevelopment Commission with a projected revenue generated by the TIF areas of $91.8 Million by 2039.
The Bedford Redevelopment Commission members received the annual update on the city's Tax Incremental Financing District the City of Bedford desgnated.
A TIF (Tax Increment Financing) district is an area within a city that, after much careful study by the city and expert consultants, is found to be “blighted” and without hope of attracting private investment without some governmental intervention. These are important criteria that must be met prior to the creation of a TIF, and they ensure that the funds generated from a TIF are used in areas truly in need of redevelopment. A city is not free to slap the TIF label on any property it wants, and what constitutes “blight” is specifically defined in the TIF statute. If an area does not meet the definition of blight under the statute, the city will not be able to create a TIF there.
The four EDA (Economic Development Areas) created by the City of Bedford have been consolidated into a Bedford Consolidated Economic Development Area. Or otherwise known as TIF district Financing.
Wal-Mart Area along John Williams Blvd - Estimated annual TIF Revenue - $1,249,070 in 2021 and projected TIF in 2022 - $1,249,540 this TIF district will expire in 2036
East Gate EDA - Estimated TIF Revenue - $277,070 in 2021 and projected TIF $397,050 this TIF district will expire in 2039
Downtown and Northside TIF Revenue - Estimated TIF Revenue 2021 is $130,890 and Projected revenue in 2022 is $306,120
GM Personal Property - Estimated annual TIF Revenue in 2021 $1,195,832 with projected revenue in 2022 - $1,668,470
OUTSTANDING DEBT FOR THE TIF DISTRICTS
A total of $1.9 Million debt issued with a total of $250,000 remains in debt - Extension of Plaza Drive from John William Blvd North from 16th Street North to John Williams Blvd, extension of water/sewer infrastructure from John Williams Blvd to 5th Street, extension of water/sewer infrastructure to the west side of State Road 37 including extension of Bex Addition
A total of $3,5 Million debt issued with a total of $2,970,000 still owed with the final debt pay off in 2037. This debt is a USDA purchased bonds with semiannual lease payments with both of the debts issued with Special Benefits Tax levied.
ESTIMATED ANNUAL COMBINED TAX INCREMENT
By the year 2039, when the last TIF District expires in 2039 a total of $91.8 Million of TIF Revenues will be generated.
2036 -2039 TIF Revenues Generated Over Time
TIF District 1 - $18,743,100
TIF District 2 - $7,146,900
TIF District 3 - $5,709,010
General Motors - $60,299,226
Combined Total - $ 91,898,236
DEBT PAYMENTS - A total of $4,113,563 payments remain in the EDA
Future projects proposed by the Bedford Redevelopment Commission include the following:
Road improvements which include a Roundabout at John Williams Blvd and Beech Street
Utility Infrastructure improvements both in water/sewer
Public Safety equipment and improvements which includes the new Bedford Police Station on 16th Street - The TIF area was expanded to include this parcel of land
Restoration of City Hall
Redemption of 2017 Lease Rental Bond to pay off the Stonegate Arts & Education building lease agreement with the USDA
Park / Trails Funding
If the EDA and TIF districts were to be ended today the tax rate for the city taxpayer will be lowered from 3.70 tax rate to 3.26 tax rate.
The net assessed value for Lawrence County is estimated at $1.6 Billion in property tax revenue generated.
The TIF district assessed value is estimated at $104,604,882 with a net TIF revenue at $3.6 Million generated annually at this time.