County Studies TIF For Dreyfus Facility
July 28, 2016 at 4:25 p.m.
A joint meeting of three government entities convened Thursday to move along legalities concerning the economic development area for Louis Dreyfus Agricultural Industries LLC.
The county redevelopment commission, development commission and council approved a resolution and an ordinance to create the tax increment financing district just south of Claypool along Ind. 15.
When an area is designated as a TIF, the taxes normally collected in that area are used to pay the loan, or bond, secured for improvements. The improvements can be buildings, roadways, sanitary sewer lines and similar infrastructure. The low-interest bond or loan is traditionally guaranteed by a government agency.
Lisa Lee, an attorney with Ice Miller, explained that the redevelopment commission's resolution pledges between 80 and 85 percent of real and depreciable personal property taxes will be used to pay off the revenue bond.
Louis Dreyfus plans to construct a railway and interior roads, a soybean processing and biodiesel production facility and pay for improvements to Ind. 15.
Lee said the state will not pay for the the addition of acceleration and deceleration lanes on Ind. 15. Costs have not been established for these paths. That's why the percentage of taxes set aside isn't fixed.
Lee explained Louis Dreyfus Agricultural Industries LLC is both the bond purchaser and borrower. Basically, the company is paying its own loan.
Lake City Bank is acting as trustee.
Louis Dreyfus will pay 100 percent of levied taxes. The redevelopment commission will direct 80 to 85 percent of those funds to LCB to meet bond obligations. The remaining 20 to 15 percent of the tax proceeds, or any portion of those funds, can either be directed toward additional improvements related to the project, or be returned to the area's governmental units such as the school, township trustee , etc.
Redevelopment commissioners Bill Warren, Lloyd Owen and Larry Teghtmeyer approved the resolution.
Kosciusko County development commission members Wes Stouder, Michelle Boxell and Harold Jones, recommended the council approve an ordinance to issue the bonds for the Louis Dreyfus project.
The bonds are not to exceed $5.7 million.
Louis Dreyfus is to create at least 60 permanent jobs at the facility with a payroll of $2.8 million by the third year after construction is complete and have made a $120 million investment in the property. Construction is to be complete by Feb. 28, 2008.
The county assumes no financial responsibility for the bonds, which mature in 20 years.
The county council approved the ordinance.
County council members are Harold Jones, Larry Teghtmeyer, Tom Anglin, Charlene Knispel, Bob Sanders, John Kinsey and Brad Tandy. Anglin and Tandy were absent.
Redevelopment commissioners also include Max Courtney and Bruce Woodward, who also were absent. [[In-content Ad]]
A joint meeting of three government entities convened Thursday to move along legalities concerning the economic development area for Louis Dreyfus Agricultural Industries LLC.
The county redevelopment commission, development commission and council approved a resolution and an ordinance to create the tax increment financing district just south of Claypool along Ind. 15.
When an area is designated as a TIF, the taxes normally collected in that area are used to pay the loan, or bond, secured for improvements. The improvements can be buildings, roadways, sanitary sewer lines and similar infrastructure. The low-interest bond or loan is traditionally guaranteed by a government agency.
Lisa Lee, an attorney with Ice Miller, explained that the redevelopment commission's resolution pledges between 80 and 85 percent of real and depreciable personal property taxes will be used to pay off the revenue bond.
Louis Dreyfus plans to construct a railway and interior roads, a soybean processing and biodiesel production facility and pay for improvements to Ind. 15.
Lee said the state will not pay for the the addition of acceleration and deceleration lanes on Ind. 15. Costs have not been established for these paths. That's why the percentage of taxes set aside isn't fixed.
Lee explained Louis Dreyfus Agricultural Industries LLC is both the bond purchaser and borrower. Basically, the company is paying its own loan.
Lake City Bank is acting as trustee.
Louis Dreyfus will pay 100 percent of levied taxes. The redevelopment commission will direct 80 to 85 percent of those funds to LCB to meet bond obligations. The remaining 20 to 15 percent of the tax proceeds, or any portion of those funds, can either be directed toward additional improvements related to the project, or be returned to the area's governmental units such as the school, township trustee , etc.
Redevelopment commissioners Bill Warren, Lloyd Owen and Larry Teghtmeyer approved the resolution.
Kosciusko County development commission members Wes Stouder, Michelle Boxell and Harold Jones, recommended the council approve an ordinance to issue the bonds for the Louis Dreyfus project.
The bonds are not to exceed $5.7 million.
Louis Dreyfus is to create at least 60 permanent jobs at the facility with a payroll of $2.8 million by the third year after construction is complete and have made a $120 million investment in the property. Construction is to be complete by Feb. 28, 2008.
The county assumes no financial responsibility for the bonds, which mature in 20 years.
The county council approved the ordinance.
County council members are Harold Jones, Larry Teghtmeyer, Tom Anglin, Charlene Knispel, Bob Sanders, John Kinsey and Brad Tandy. Anglin and Tandy were absent.
Redevelopment commissioners also include Max Courtney and Bruce Woodward, who also were absent. [[In-content Ad]]