Tuesday evening the Plymouth Redevelopment Commission held a special meeting to consider a proposed bond issue for TIF #1.
Plymouth currently has 3 TIF (Tax Incremental Financing) districts. When created, the first one was not required to have a sunset date while the other two do have dates when they will close. Recent legislation put sunsets on the legacy TIFs across the state. TIF #1 in Plymouth was given a 2025 expiration date unless a bond issue is being paid from it, then it can be extended until 2040.
Currently the revenue stream in TIF #1 is approximately $170,000 after the redevelopment commission passes through $30 million in assessed value.
There are three priority projects the City of Plymouth would like the redevelopment commission to consider funding with a bond issue. Those projects are: 1) improvements to the Ledyard Water Treatment Plant and a water main extension with an estimated project cost of $5,475,000. Funding would be shared by user fees and pledges from the TIF.
The second project involves water and sewer extensions to future residential development. Projected cost is $1,850,000 and funding would be from 2015 bond proceeds and from sewage works cash balances.
The final priority project would be phase I improvements of Pioneer Drive for Love’s Truck Stop. Estimated cost is $1,200,000. Funding for the proposed project could be from cash balances in TIF #1 and #2 and a contribution from INDOT.
There are several steps that need to be taken for these projects to move forward including changing the proposed water bond ordinance to expand the scope and cost of the project. Then the redevelopment commission will have to amend the economic development plan for TIF #1 to include the water treatment plant improvements, amend the economic development plan for TIF #1 and TIF #3 to include the Pioneer Drive improvements and extend a pledge of TIF revenue from TIF #1 for the payment of 2015 Water Revenue Bonds.
On Tuesday evening the Redevelopment Commission unanimously voted in support of the city to extend the life of TIF #1 for the projects.
