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Last updated on Wednesday, February 14, 2018
(BLOOMINGTON) - The Monroe County Council voiced its support of the Cook Group expansion project on the county’s west side as the local company moves through the process of becoming a single-property tax increment financing district.
Ernest Rollins of the Herald Times reported on Tuesday the council approved Cook's request to purchase $6.2 million in bonds to pay for the redevelopment of 100 acres of Cook-owned property along North Curry Pike, which includes the former GE Appliances property.
While Cook pays for the bond upfront, the company will recoup those costs using tax increment finance revenue -- also known as TIF revenue.
To fulfill Cook's request for TIF revenue, the county has opted to create a new single-property TIF district composed of just the Cook-owned parcel on Curry Pike as a vehicle to support the redevelopment of the property.
While the county originally committed to providing up to $5 million, December changes to the federal tax code have prompted county officials to increase the bond amount from $5 million to $6.2 million.
Bond payments will be made using tax increment financing revenue generated within the newly created TIF district. The bond is expected to have a life span of 25 years. If there is a shortfall in the revenue collected and Cook is unable to make bond payments, then the company is on the hook and not the taxpayers.
There are still a number of steps remaining before the single-property TIF district is created and Cook purchases the bonds. As part of the TIF creation process, the new TIF district must win the approval of the county commissioners, county plan commission and the redevelopment commission.
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