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Warsaw City Planner Jeff Noffsinger said Monday at the Warsaw Redevelopment Commission meeting that Sofamor Danek is getting closer to making the move into their new building on U.S. 30.
Noffsinger said "water and sewer is out there (at the new building.)"
The board previously approved a special ordinance authorizing the city of Warsaw to issue an economic development revenue bond, not to exceed $2.5 million, to Sofamor Danek.
The project consists of an orthopedic hardware manufacturing and production facility at the northeast corner of the intersection of U.S. 30 and CR 150W.
Randy Rompola, attorney from Baker & Daniels, said earlier that funding for the project will come from Sofamor Danek's tax increment financing.
"Sofamor Danek tax revenues are the only revenues that will pay the bonds," Rompola said earlier. "In a sense, the company is financing itself."
He also said the bonds are not an obligation to the city of Warsaw.
Noffsinger said Monday it will take approximately 20 years before the bond is paid off.
Board members also approved 2001 budgets and two 2001 increment requests.
The requests were for Warsaw Central Redevelopment Area at 70 percent and Warsaw Northern Economic Development Area at 100 percent.
Warsaw Clerk-Treasurer Elaine Call explained that the Warsaw Central Redevelopment Area increment "is where the property tax is collected."
"People around that area pay taxes," Call said. "When collected, we can recoup 100 percent."
Board members decided to recoup 70 percent.
Call said board members "come up with the percentage that they feel they need to collect to make sure the payment is paid."
In this case, the bond payment is Sofamor Danek's.
Call said the rest of the money, 30 percent, "is split between the library, school, county and that type of thing.
"But, we have a right to recoup it all if we want," Call said.
The Warsaw Northern Economic Development Area increment works in the same way, Call said.
Board members decided to collect 100 percent of the property tax.
The Warsaw Redevelopment Commission consists of: Tammy Rockey, Neal Carlson, Bob Steele, Charlie Smith and Jerry Kralis.
