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Speedway's Forecast: $62,755,000 Bond Issue
(posted May 14)
The Speedway Redevelopment Commission approved a resolution at its May
14 meeting that is paving the way for the newly created redevelopment
authority to issue a $62,755,000 bond on behalf of the SRC. The resolution
approved a proposed leasing agreement between the redevelopment authority
and redevelopment commission. The redevelopment authority will serve as
the lessor in the arrangement. The May 19 public hearing will accept public
comment as part of the requirement to finalize the proposed leasing agreement.
The bond is necessary to carry out part of the SRC's Master Plan to realign 16th Street.
Attorney Kim Blanchet said the redevelopment authority is serving as the
financing arm for the redevelopment commission so it can bypass the bonding
debt limitations of a two percent cap of the town's net assessed valuation.
Although all of Speedway's property taxes will be used to back the bond
for marketing purposes to bond investors, she assured that tax increment
revenues from the Speed Zone would be sufficient to cover the bond payments.
If not, the agreement gives the SRC the power to levy an additional tax, called
a special benefits tax, in the Speed Zone to cover the maximum lease payments
of $6,063,000 per year.
The bonds are expected to be issued in series to avoid paying interest on the unused principle.
The bond will also pay off the $2,995,000 Bond Anticipation Note that the
SRC currently uses to cover operating expenses. In 2007, the TIF revenue
was $1,343,442.13.
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