Special City Council Meeting to Consider $700,000 Loan to Redevelopment Commission

06/07/10

Members of the Plymouth Common Council will have a tough decision to make during a special meeting scheduled for Monday, June 7^th at 6 p.m. in the Council Chambers of City Hall.

City Attorney Nelson Chipman will present a resolution that authorizes a loan in the amount of $700,000 to the Plymouth Redevelopment Commission.  The additional funding is in support of the US 30/Pine Road  (TIF)Tax Incremental Finance District.  The resolution establishes the terms of the loan, authorizing the Board of Public Works and Safety to contract for receipt of proceeds of land sales, and authorizing transfer of loan proceeds from the City Development Fund to the EDA Grant/TechFarm Fund.

The special meeting is due to a substantial increase in the bids for the TechFarm project that were opened on May 24^th.  The Board of Public Works and Safety opened bids from four companies.  Base bids ranges from $2,198,560 to $2,276,025. Also included in the bids were options for seven alternates. 

During the special Plymouth Redevelopment Commission meeting on June 1^st the commission decided to approach the City of Plymouth for the additional funding of $700,000 to complete the projects. 

Dave Miller from Vanco Development explained that an agreement was created that will split the proceeds from the sale of any lots in the TechFarm 50/50 between Vanco and the Redevelopment Commission.  It is anticipated that these funds will help to pay-back the loan.