Aldermen expand borrowing zone
RIDGELAND — Aldermen expanded the Costco development financing zone to include nine acres across the street on the Highland Colony Parkway.
Changes to the Tax Increment Financing plan (TIF) will help Renaissance developers to better meet their side of the deal, officials said.
Christiana Sugg with the financial consulting firm Gouras and Associates of Madison represented the Renaissance at a public hearing Tuesday during a regularly scheduled meeting of the Mayor and Board of Aldermen.
She asked that the TIF approved in 2016 be amended to include the roughly nine acres on the west side of the Highland Colony so that developers can better meet their goals and requirements associated with bond monies.
This new zone is designated Renaissance Phase IV and is currently occupied by a Wendy’s and a fuel station.
The hearing ended quickly with no questions asked by city officials.
Ward 1 Alderman Ken Heard made a motion to approve the request on the condition that they receive a letter from the developers stating that they would not ask the board to expand the land covered by the TIF or money to be issued through the TIF in the future.
City Clerk Paula Tierce confirmed that the city had received a letter that would satisfy Heard’s request pending final approval from the city’s legal counsel.
Ward 5 Alderman Bill Lee seconded the motion and it was unanimously approved 7-0 with Ward 2 Alderman Chuck Gautier participating by telephone.
The original TIF was approved along with two others in December of 2016.
Four years ago, Heard was joined by Ramsey in opposition to a resolution approving the Renaissance Phase III TIF that was expanded. The resolution passed then 5-2.
There was much controversy at the time with neighbors west of the Highland Colony upset the Costco was being built on the parkway conceived for the purpose of development.
Landowners three decades ago donated right-of-way in exchange for being able to develop their land commercially along the Highland Colony.
A TIF is a creative financing mechanism that diverts a portion of sales and property taxes generated by a development to debt service.
Borrowing on the TIF remains capped at $12.5 million.