$7.8M borrowed for infrastructure
RIDGELAND — City officials will borrow almost $8 million for infrastructure in the Renaissance Phase III area.
The money is part of the Renaissance Phase III Tax Increment Financing plan. They will issue $7.8 million in TIF bonds. The money will go toward infrastructure in the Renaissance Phase III area.
Alderman-at-Large D.I. Smith said the exact items have not been decided yet. The city is waiting on suggestions from the developer. Smith said turn lanes and drainage were items they had discussed but the monies could go toward any number of projects in the area including street paving or street lights.
A potion of sales and ad valorem tax from the area will be diverted the debt service. Smith said officials are on track to pay the bond off in 15 years.
Smith said current contributors to the TIF included Costco and Wendy’s as well as a forthcoming Chick-fil-A and a Walk-Ons.
Ward 1 Alderman Ken Heard said he thought the development had “given a lot” and that he would give his “OK to proceed.”
The item passed on a unanimous 7-0 vote.
An interlocal agreement between Madison County and Ridgeland approved at the April 20 meeting of the Ridgeland Mayor and Board of Aldermen means the county will divert tax money to the TIF.
The county’s contributions will exclude ad valorem taxes collected on the Costco building anchoring the development. Bonds can be issued up to $12.5 million.
A TIF is a creative financing mechanism that diverts a portion of sales and property taxes generated by a development to debt service. The monies will be invested in the area’s infrastructure.
The Renaissance Phase III TIF was approved in December 2016 by the board with Butler Snow as bond counsel, Jerry Mills as counsel to the city and Government Consultants Inc., as the municipal advisors.
In December 2020 the area eligible for TIF money was expanded to include the 9 acres across the street from the Costco known as Renaissance Phase IV that currently includes a fuel center, Wendys and the site of the future Chick-fil-A.
Construction has already started on the Chick-fil-A after the site plan and architectural review were approved in April.