Lawrence County RDC Looking at Projects from Lehigh TIF District
MITCHELL -( February 10, 2022) - The Lawrence County Redevelopment Commission met Thursday morning to discuss how to use bonds to finance various projects using the Lehigh TIF Funds.
TIF Projects considered:
Constructing a shell building in the Mitchell Industrial Park to encourage economic development
TIF Housing Project
Road repair or construction inside or outside Mitchell City Limits
Marion Township Volunteer Fire Station Project
(Marion Township Volunteer Fire Department is requesting funds to construct a fire station. The funds are to help with a shortfall of $150 - $200,000. Marion Township VFD is making preparations due to Anyhyrous Ammonia tank that will store 20,000 gallons. The tank will need to be fille three times a week)
County Attorney David Smith discussed the various ways the Lawrence County Redevelopment Commission could borrow money for some of the projects.
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One of the considerations is to have the county commissioners and county council loan the money for the projects through a formation of a lease holder. The money will be paid back and the deed then turned over. The funds will be borrowed by the RDC by a tax backup.
In addition, money from the sale of Dunn Hospital could be used to make direct purchases. There were no decisions on how to those funds.
The IRS is very specific on how the bonds can be issued and how they are to be paid back.
Revenue from the TIF district will not start coming in until the completion of the Lehigh Project and tax assessments are complete. Tax abatements for Lehigh will also keep revenue from coming in the first year of the abatement.
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David Smith advised the RDC revenue for the TIF district may not be realized until 2025 or 2026 depending on whether they are any delays in the construction project.
RDC members took the matter under advisement.