Warsaw City Council Wednesday approved a special ordinance authorizing the issue of economic revenue bonds for Medtronic Sofamor Danek development.

The bonds are set up over a 20-year period and are not to exceed $2.5 million.

Danek's construction site is at the intersection of U.S. 30 and CR 150W and the construction is estimated at $20 million.

The project, already under construction, consists of an orthopedic hardware manufacturing and production facility.

Randy Rompola, attorney from Baker & Daniels, confirmed with the council that the bonds are not an obligation of the city. Rompola said tax revenue generated by Sofamor Danek will pay off the bonds.

"This is the last official action for the financing that we have at this point," Rompola said. "We expect to close on this within the next 30 days."

Attorney Richard Hill said at an earlier meeting with the council that the company's investment will ultimately be the security behind the bonds. Warsaw residents' taxes, Hill said, will not increase as a result of the construction.

Earlier Wednesday, the Warsaw Economic Development Commission approved their final step in the Sofamor Danek project.

The board approved a special ordinance authorizing the city to issue the economic development revenue bonds.

The Warsaw City Council consists of: Mayor Ernie Wiggins, town attorney Mike Valentine, Joe Thallemer, Trish Brown, Jeff Grose, Charlie Smith, Paul Siebenmorgen, Jerry Patterson and Bill Rhoades.

The Warsaw Economic Development Commission consists of: Jeff Noffsinger and Paul Siebenmorgen. [[In-content Ad]]