Lafayette is in the process of refunding several bonds in order to save money.
The city’s Redevelopment Authority and Commission both approved the plan Monday. It combines two tax increment financing (TIF) bonds into a new one, and does the same for two economic development income tax bonds.
Economic Development Director Dennis Carson says the duration will stay the same, but the interest rates will be much lower.
“We’ll be saving taxpayer money and we’ll be able to put that money back into our funds for other projects and programming. We have lots of different things we’d like to do in those areas, so this will give us a little more flexibility.”
The city council will consider the bond refunding at its meeting next week. The accounting firm working with the city estimates the net savings will be nearly $1 million.
The Redevelopment Commission also began the process of reorganizing two TIF districtsinto one. The new boundaries will take in the old Home Hospital property and stretch from the Wabash River to Creasy Lane.
Carson says the move just made sense.
“The Home Hospital property has changed hands and we’re looking at redevelopment on that, so this was a meaningful way for the Commission to be able to participate on this project,” he says. “It also gives us an opportunity to consolidate TIF districts, which for ease of administration and for budget flexibility, makes it much simpler for us.”
The city council and Tippecanoe County Area Plan Commission must sign off on the proposal. The TIF expansion and consolidation then comes back to the Redevelopment Commission for a final vote.