The method of funding for a shell building at the Fawn River Industrial Park was tabled again at the joint meeting of LaGrange County Commissioners and LaGrange County Council members Monday morning. The building was originally approved and a funding stream established during the last quarter of 2012.
Since that time, it has been learned that there will not be a sufficient amount of money generated by the Tax Incremental Financing (TIF) District that includes the industrial park to adequately fund payments for a bond issue that was to have been issued to finance the project. This was due to the lowering of assessed values of property within the TIF district by County Assessor Pat Monroe.
An alternative method of financing has been suggested wherein the county will loan the cost of the project to the county redevelopment commission from Major Moves money at a rate of 1 percent per annum. Major Moves money is earning less than 1 percent at this time and the TIF district will generate sufficient funds to meet this obligation.
The original proposal would have obligated the county to pay interest on the construction loan of some 5 percent a year, so there will be a significant savings on projected costs.
County Attorney Kurt Bachman said that his office had contacted the office of Garmong Construction’s attorney March 27, immediately following the last joint meeting of council and commissioners, with requests for language that council members had requested be inserted into the already approved construction agreement. “To date we have not heard back from them,” Bachman said Monday morning.
This issue was tabled until such time as proper documentation is received.