Warsaw City Council Thursday approved a 20-year, $2.5 million bond issue for Medtronic Sofamor Danek's $20 million construction project. The construction site is at U.S. 30 and CR 150W.

The council also passed a resolution annexing an 85-acre tract that includes Danek's 25-acre construction site. The tract was designated as an economic development area.

The bond will be used to fund infrastructure improvments in the economic development area, including sewer, water, storm drains and road work.

Property taxes generated by construction in the development area will be used to make payments on the bond.

"The company's investment is really going to be the security behind the bond," attorney Richard Hill said at the council meeting. The site will be used for a new 150,000-square-foot Sofamor Danek building on 25 acres.

Tim Meyer, group director of finances and administration for Sofamor Danek, said, "Right now, we're running about two weeks behind, but we're still on schedule to move in July or August."

Local residents' taxes, Hill said, will not increase as a result of the construction.

A public hearing will be scheduled to further discuss the bond ordinance in the future.

In other business:

• The City Council approved the fiscal plan for DePuy's annexation request. The 15.75 acres is directly north of DePuy's current location and is designated as a district II area. The ordinance will take effect April 20.

• The Economic Development Commission elected new officers yesterday. City Planner Jeff Noffsinger said with a chuckle, "No, I cannot do all three." Noffsinger, however, was appointed president. Paul Siebenmorgen was appointed vice-president, and John Kinsey was selected as the secretary. [[In-content Ad]]