Syracuse Redevelopment Commission Thursday passed a resolution establishing a new tax increment finance (TIF) district – the Syracuse-Polywood Economic Development Area.
TIF revenue will help pay the bonds for the new athletic complex and “set a new clock for another 25 years,” said Dennis Otten of Bose, McKinney and Evans, bond counsel.
He said once passed Thursday, it will go to the plan commission, then to the town council and back to Redevelopment Commission.
The commission also passed a bond resolution, authorizing the issuance of bonds and bond anticipation notes (BANS) to finance the new athletic complex. The bond is not to exceed $2.85 million and BANS are not to exceed $1 million.
Otten said they would set up the bonds and BANS so they’re purchased by Polywood or its affiliates.
“There’ll be no other source of town funds used, just TIF and bonds and BANS,” Otten said.
Commission member Paul Stoelting asked why there was a limit of one million on the BANS. Town Manager Mike Noe asked Otten to explain if the estimated cost they received for the ball park is $1.5 million and the BANS are limited to $1 million, where is the other $500,000 coming from?
Otten deferred to financial advisor Jim Higgins, of London Witte Group, to help explain. Otten and Higgins explained the deal they made with Polywood is for them to contribute up to $500,000 for the new athletic field and the town to match that amount dollar for dollar.
Higgins said since Polywood is definitely contributing $500,000, the other million is covered with the BAN. Stoelting also asked if the road improvements, which are estimated to cost $2.85 million, cost less but the ball field cost is more, would they be able to transfer some of those funds?
Higgins said the total cost is $3.35 million and some banks would allow a draw down.
In other business, the commission approved a resolution transferring real estate, which would allow the Redevelopment Commission to accept the 6.96 acres that Polywood plans to build on from the town.