The Plymouth Redevelopment Commission took steps during their meeting on Tuesday to create an eighth TIF District.
The commission conducted a public hearing on the plan to modify TIF District Number Two and create TIF District Number Eight which will be known as the Water Street Allocation Area.
City Attorney Sean Surrisi said the plan is to reduce TIF District Number Two’s allocation area by removing the city parking lot at the corner of Water and Garro Streets and the property at 101 South Michigan Street that is being renovated into a restaurant. The plan takes those two areas along with the two residential lots north of the Water Street Townhome site to create the eighth TIF District.
There were no public comments during the hearing.
The Redevelopment Commission also passed a resolution that pledges TIF funds from TIF Districts Number Two and Eight that will be used to pay the bonds for the townhome and restaurant/brewery project. It was noted that TIF # 2 will only pay in for eight years until it sunsets.
Surrisi said the Redevelopment Commission pledges tax increment funds to support the two projects with $800,000 toward the townhome project. He said the funds are the required local match for the $520,000 READI Grant received for the project. The restaurant/brewery allocation is $150,000.
The city attorney said requests for proposals from several banks found an affiliate of 1st Source Bank that is willing to purchase the bonds with the parameters set forward by Baker Tilly. The interest rate will be 7.5%.
The last step in the process was for the Redevelopment Commission to approve a resolution that confirms the plan to amend TIF District Number Two and establish TIF District Number Eight. Members of the commission unanimously approved the resolution.