By Bill Short
The Millington Board of Mayor and Aldermen has unanimously adopted a resolution approving an Economic Impact Plan for the Forked River Commons Project.
Board members took the action during their Oct. 11 regular monthly meeting on a motion offered by Alderman Jon Crisp and seconded by Alderman Larry Dagen.
The Millington Industrial Development Board had prepared an Economic Impact Plan for the development of approximately 32 acres in the northwest corner of the intersection of Highway 51 and Veterans Parkway that will consist of two separate tracts.
At its Oct. 4 meeting, the IDB voted to approve the EIP and to submit it to the city board for adoption.
The board’s resolution states that the Plan area will be a multi-use development including retail, office and hotel components, as well as medical and/or assisted living/independent living facilities, that will be constructed in a phased manner.
The EIP will allow certain Tax Increment Financing to be provided through issuance of the IDB’s bonds, notes and other obligations in an amount not to exceed $3,516,320.
The resolution states that the TIF proceeds will be used to pay the costs of eligible public improvements related to development of the project.
The incremental property tax revenues that result from development of the Plan area will be allocated to the IDB to pay debt service of the TIF.
The IDB will issue the TIF to a lender or lenders to finance the TIF eligible costs and will pledge the TIF revenues to them to apply to the debt service.
The resolution states that the TIF will not represent or constitute a debt or “pledge of the faith and credit or the taxing power” of the IDB, the city or Shelby County.
It authorizes the officers of the city to take “all appropriate action” to carry out the terms of the EIP.
During discussion shortly before the vote, City Attorney Gerald Lawson said this is “very similar” to the other TIFs that the board has initially approved in other developments.
He noted that the EIP would be submitted to the Shelby County Commission for consideration.
In response to a question by Alderman Bethany Huffman, Lawson said that, as with the others, it will be bonded by the IDB and not the city.
“We won’t be responsible,” he noted. “As we’ve discussed in the past, the only thing it’ll affect is the bond rating of the total indebtedness of the city.”
