Commissioner Dustin Gabhart says Lawrence County RDC should wait and save $2 million
MITCHELL - 7, 2023 - The Lawrence County Commissioners in a 2-1 voted approved a bond resolution for the construction of a shell building in Mitchell's Industrial Park.
The cost of the shell building should not exceed $8 million and Dunn Hospital Funds will be used to make the interest payments.
Lawrence County Commissioner Dustin Gabhart told those in attendance that the construction should wait until the Lehigh TIF starts generating revenue. Once the TIF funds start rolling in they should start building it.
" Two million is a pretty big gamble and then ask taxpayers to bail you out if things do not work out," Gabhart told Jeff Quyle.
The Mitchell Industrial Park has had slow growth since the City of Mitchell purchased the 100 acres to be used to draw business.
Construction of the shell building should begin soon.
GM Development Corporation have applied for the loan of approximately $7.1 million.
Lawrence County RDC will pay back the loan to GM Development Corp. once the building is sold to a company that will use the building.
The Lawrence County Redevelopment Commission has agreed to an Build Operate Transfer method to construct the shell building.
The Lawrence County Redevelopment Commission approved a resolution to move forward with a proposed $5.1 Million Shell building back in July, to be constructed in the Mitchell Industrial Park.
Photo: A proposed 50,000 sq. foot shell building will be constructed in the Mitchell Industrial Park
The location will be by the intersection of Doc Hamilton Boulevard and Merdian Road in Mitchell City limits.
Lisa Lee, Ice Miller presented to the Lawrence County RDC during a public hearing prior to the RDC on meeting on the proposed project for a Build, Operate, Transfer Model.
The project has been awarded to GM Development LLC. Corporation and Runnebohm Construction on the project by the Lawrence County RDC.
The building itself will be a total of 50,000 square feet metal fronted building on approximately 15 acres.
Heidi Amspaugh, Bakertilly Municipal Advisors was on hand on Thursday' to advise on how much the Lehigh TIF revenues will generate over time.
The revenue generated from the TIF districts will be more than enough to pay for this project.
TIF Revenue Generated in Lehigh TIF District listed below:
2023 - $182,810
2024 - $420,450
2025 - $0
2026 - $599,740
2027 - $1,442,740
2028 - $1,898,350
2029 - $2,176,00
2030 - $2,376,950
2031 - $2,424,890
2032 - $2,687,520
2033 - $3,106,650
2034 - $3,522,250
2035 - $3,931,250
Total TIF revenue $24,586,840 with the personal and real property the TIF revenue will generate about $29 million.
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