The Plymouth City Council held a special meeting this week to consider a substantial loan to the Redevelopment Commission.
City Attorney Nelson Chipman presented the resolution authorizing a loan in the amount of $700,000 in support of the US 30 and Pioneer Drive/Pine Road TIF (tax incremental finance) District. The resolution establishes the terms of the loan and authorizes the Board of Public Works and Safety to contract for receipt of proceeds from the sale of land in the TIF District, mainly the TechFarm properties. It also allows for the transfer of loan proceeds from the City Development Fund to the EDA Grant/TechFarm Fund.
When the bids for the TechFarm project were opened in late May they were substantially higher that estimated. The low bid for the project was $2,418,720 and did not include costs for the grant writer, engineering and design fees, and miscellaneous expenses totaling an additional $220,160.
The goal of this project is to build infrastructure that will create an attractive environment for industries utilizing high technology skill sets, and therefore higher salaried jobs. It is an economic development project, and one Mayor Senter has endorsed and embraced as in the best interest of the community.
Terms of the loan established the interest rate at 5% per year, amortized over a seven year life. The terms includes the current principal balance of $360,000 left from the initial loan of $570,000 the city provided to Redevelopment for the required match money for the EDA Grant. The payment schedule calls for the first payment of $204,000 to be paid on August 1st, 2011 with the final payment scheduled for February 1, 2017 although the loan can be paid off earlier if funding is available.
The Plymouth Common Council unanimously approved the resolution contingent upon the anticipated agreement between Van Vactor Farms Inc. and the Redevelopment Commission on the 50/50 split of proceeds from the sale of lots in the TIF District.