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Council Passes Ordinance 1114
(posted May 22)
The Speedway Town Council approved 4-0 to adopt Ordinance 1114 which authorizes a lease rental agreement that will allow the redevelopment authority to bond for a maximum of $62,755,000. The ordinance finalized the resolutions adopted by the redevelopment authority and redevelopment commission on May 19. The lease agreement also requires Department of Government Local Finance approval, which is schedule for a hearing on June 26.
The bond will cover construction of the 16th Street
realignment, Main Street improvements and Gilman Road extension. Gutting
explained tax increment financing revenue is expected to growth with projects
from "IMS, Praxair or somebody else."
Councilors Jeff Hartman and William Suffel wanted to make sure the bond
issuance would not increase property taxes. Gutting said a paragraph was
developed after the May 19 SRC meeting to make it clear to the public
that property taxes will not be needed.
Gutting said that the bond money can be invested at an interest rate at
the same rate borrowed or less to avoid arbitrage.
The rules were suspended to pass the ordinance on second reading to meet
the time frame. President Gary Raikes was absent.
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