MOUNT VERNON — At last week’s city council meeting, Sugar Street resident and former councilman Mike Hillier wanted to clarify who will pay for turn lanes on Route 13 for the Liberty Crossing subdivision.
The city is considering using tax increment financing (TIF) and a New Community Authority (NCA) to pay for developing the subdivision.
TIFs divert property taxes on improved values into a separate fund. The city can use the money to pay for infrastructure improvements within the TIF district.
An NCA is a distinct entity from the city that can levy assessments on property within the NCA and sell bonds.
At the May 12 council meeting, Michael Ringle of consultant Bricker Graydon said the TIF and NCA will pay for road widening and turn-lane infrastructure for Liberty Crossing.
However, Highland Real Estate previously said it would bear the cost. HRE also said it would take any land needed for the widening from its property, not the surrounding homeowners’ property.
Based on HRE’s previous commitment, Hillier does not believe TIF money should be used for this part of the Liberty Crossing project.
“One reason council agreed to this project is because Highland Real Estate agreed to pay for the turning areas and other items,” he said. “That was brought up and discussed and that was one of the things we agreed on, that they would pay for it.”
Plans call for the nearly 100-acre site to encapsulate 477 residential units on the west side of Newark Road, including 93 single-family homes, 42 patio homes, 112 townhomes, and 230 multi-family residential units.
What happens if HRE pulls out?
Hillier also questioned what happens if HRE pulls out as developer.
Citing the condominiums on Upper Gilchrist Road, Hillier noted the original developer passed away and the project stalled for about seven years.
When the second developer resumed construction, the developer did not honor the road improvement commitment made by the original developer.
“To this day it has not been developed. What if the same thing happened on Newark Road?” Hillier asked.
“I think you need to ask a lot more questions about this project and a lot more questions about the loan.”
The loan Hillier referenced is not a typical loan.
The reference is to the NCA’s plan to sell bonds to pay for subdivision infrastructure and repay the bonds with TIF and NCA fees.
If, in the worst-case scenario, the bonds default, the bondholders bear the risk, not the city.
Legislative action
Council members gave a second reading to legislation creating the TIF districts and amending 2025 appropriations. They also passed an ordinance updating the codified ordinances.
City council did not have enough members present to suspend the rules and adopt legislation, so they gave a first reading to the following legislation:
•Accepting the Knox County Land Bank’s donation of an 8-foot-wide strip of land on the western edge of Heartland Commerce Park
•Applying for an ODNR NatureWorks grant for a restroom in Arch Park
•Adjusting 2025 appropriations
•Creating a fund for grant money for the municipal court’s probation department
•Paying bills
•Disposing of police department vehicles no longer needed
•Reappointing Sarah Wagner to the Shade Tree and Beautification Commission
•Revising the credit card policy
Mayoral assistant Todd Hill tendered his resignation as clerk of council. Following its legislative session, the council adjourned into executive session to discuss personnel. Council members took no action after returning from executive session.