Crown Point takes steps to fund next phase of Sportsplex, downtown revitalization
By Carrie Napoleon Post-Tribune correspondent November 14, 2012 7:52PM
Updated: December 19, 2012 12:11PM
CROWN POINT — Funding is being put in place that could help pay for Phase III of the Sportsplex and the downtown revitalization project.
City Council members in a special meeting Wednesday approved 4-0 three resolutions needed to sell $5 million in revenue anticipation bonds sought by the Redevelopment Commission. Council members Bill Feder, Carol Drasga and Laura Sauerman were absent.
The move comes on the heels of action taken Monday by the RDC and Plan Commission to move the matter before the City Council.
“The importance of doing all this at once and bundling it together is to close on today’s interest rates,” Mayor David Uran said. Selling the bonds now will lock in favorable low interest rates. The next step in the process is a public hearing before the RDC.
Earlier this year the RDC approved using $2 million of the revenue in a matching grant situation with the Dean and Barbara White Foundation to pay for Phase II of the Spotsplex and improvements to the Little League fields.
Uran said having some money in place to pay for Phase III and the revitalization project will better position the city to seek future matching grant opportunities through the foundation.
The bond will be paid back through revenues generated by the city’s Interstate 65 and Sportsplex tax increment financing districts.
Uran likened the anticipation bond being used to a home equity line of credit The city will have to make payments only on the $2 million in use. If officials decide to tap any of the remaining $3 million it will come into play at the same low interest rate.
Uran said officials do not have to use the money.
He said the TIF districts are in good financial shape to pay back the bond. State statute requires the repayment source to have $1.25 in revenues for every dollar borrowed. Currently the TIFs have $2.27 per $1 borrowed in revenues and will be heading into 2013 with about $2.4 million cash on hand, he said.