MUNSTER | Encouraging businesses to locate in Munster involves providing financial incentives as part of an overall economic development plan.
Consequently, the Munster Redevelopment Commission continues to sell bonds to bring in money for those incentives.
At a recent meeting, the commission authorized City Security Corp. of Indianapolis to act as the underwriter for the upcoming sale of 2013 Redevelopment Commission Bonds Series A, B and C.
An underwriter is a securities dealer who helps governmental groups bring bond issues to market to sell to investors.
“Staff has been pleased with our longtime relationship with City Securities,” Town Manager Tom DeGiulio told commissioners, who also serve as the five members of the Munster Town Council.
“They have worked with us on numerous (bond) issues as underwriter and been a successful purchaser of several of our publicly bid issues,” DeGiulio said. “They have a strong presence in Indiana and they have worked with both Barnes & Thornberg and Ice Miller.”
The Indianapolis-based Barnes & Thornberg lobbies for Munster and with Ice Miller LLL of Chicago is the town’s bond counsel.
In related business, the Redevelopment Commission heard a report from DeGiulio about the expected sale of 2013 economic development bonds.
Plans call for two bond issues to provide incentives for Matthew Kimball to develop Centennial Village, a planned unit development featuring about 233,000 square feet of retail space and 172 residential units. Barnes & Thornberg will handle those bond issues, DeGiulio said.
The town originally planned to issue special taxing district bonds to provide incentives for three additional private projects by Land O’Frost, Boyer Development and Project Goldberg.
However, during discussions with Ice Miller “it was determined that our special tax district bonds would need to be modified,” DeGiulio reported. “Because these are to be property tax backed, all projects must be publicly bid and are subject to prevailing wage determination.”
Instead, those three projects will receive incentives from current tax increment financing district funds. TIF funds come from a portion of property taxes paid by business in the TIF district that are returned by the state. The Munster Redevelopment Commission has control of those funds.
Now the special taxing district bonds will be used for work at Community Park.
“These (park) projects have been publicly bid and all are subject to prevailing wages,” DeGiulio said. “The second project in the (bond) issue will be the 45th Street extension, which is bid and uses prevailing wages.”