12/21/2015 Meeting Minutes - Laserfiche WebLink

Home Browse Search

Minutes of the Regular Meeting of Council Monday, December 21, 2015 Page 12 ^ Skoda, Minotti T.I.F. Fund to the General Bond Retirement Fund to offset debt payments the sum of Fourteen Thousand Seven Hundred Seventy- Three Dollars and Forty-Six Cents ($14,773.46). ^ OMNI Hotel T.I.F. Fund to the General Bond Retirement Fund to offset debt payments the sum of One Hundred Nineteen Thousand Eight Hundred Fifty-Seven Dollars and Eighty-Five Cents ($119,857.85). Council President Marrie asked, any discussion? Mayor Rinker asked Ron to explain to everyone what this is. Mr. Wynne replied, when certain projects took place in the Village, we entered into Development Agreements with those businesses that said that any increase in the value of their property as a result of their project, the schools would get their portion of the taxes to that increase and we would get the balance. The balance would come to the Village to pay any debt that we would have to incur to help them along with their project. As you know with Progressive's second Campus we had to pay for the widening of SOM Center Road and infrastructure in that area and the same holds true with these other businesses. That T.I.F. money will come in with their agreements over 30 years. We will continue to receive that T.I.F. money until the debt we had to incur is fully paid off and we have been reimbursed. Mayor Rinker added, I think it's worth noting historically that when Progressive built its first Campus on Wilson Mills Road, there was a lot of controversy over our approving at the time a 15 year two-thirds property tax abatement. It created quite a stir at the time. Progressive as we know kept on growing and when the second Campus came up, that really was the first opportunity we had to explore the T.I.F. mechanism and so that was really the bellweather for a form of economic development that we had not engaged in previously. It's different from assessments. It's different from tax abatements. It's different from going out for levies for different particular projects. It's a way for us to underwrite a lot of the kinds of infrastructure that have been so critical that we have installed over the last few years. So when you add these up if you look at the agenda, it's well over a million dollars every year. The property owner doesn't pay any different tax, it's how the tax dollars are divvied up and utilized. As you are aware, Ron has been an excellent manager of the funds that we receive to be able to build up. I think it's important to know that a T.I.F. mechanism is something that really has worked very well for Mayfield Village. Council President Marrie asked, any other discussion? There was none. Roll Call: AYES: All Motion Carried NAYS: None Transfers Approved 1