Bowling Green TIF District

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This is a development area and tax increment financing (TIF) district for the redevelopment of an approximately 40-acre site in downtown Bowling Green in cooperation with Warren County and Western Kentucky University with Alliance Corporation acting as the master developer. It involves a comprehensive mixed use economic redevelopment area comprised of residential, office, hotel, restaurants and other commercial components, with certain public elements that include a Baseball Stadium, Parking Garage, a Performing Arts Center and other public infrastructure improvements.

The city commissioners voted on June 12, 2007 unanimously to approved the "Signature TIF" district plan. By signing up for a "Signature TIF" the city signed up for the highest level TIF which would equal collecting at least $200 million from taxpayers over 30 years. At this time the city also signed an agreement with the Glasgow-based Alliance Corp to serve as the master development for the projects.[1]

Contents

Ongoing developments of this project

June 6, 2008: The city of Bowling Green may have a problem funding all of the expectations of its leaders in FY 2009. Bowling Green will work under an 8.7% leaner budget in the fiscal year that starts July 1, 2009, according to city manager Kevin DeFebbo. He claims this impending drop in tax revenues is due to a sharp drop in local economic growth. Fuel and pension costs are rising sharply, while state and federal funds are drying up. New funding requirements this year include the establishment of two special reserve funds to back $29.5 million in bonds for the Inter-Modal Transportation Authority, issued in a refinancing plan last year; and to back $25 million in bonds for downtown redevelopment that commissioners plan to issue this year.

Commissioners were handed eight documents containing the latest revisions to a series of agreements on downtown redevelopment, and asked to pass two ordinances approving them and issuing $25 million in bonds to start the project. Commissioners grumbled at being asked to approve 250 pages of legal documents without a chance to read them; and while they passed a first reading on the documents themselves by a 3-2 margin, with commissioners Bruce Wilkerson and Joe Denning opposed.[2]

April 26, 2007: The Board of Commissioners of the City of Bowling Green, Kentucky met in special session to consider a Downtown Redevelopment Plan and Memorandum of Understanding and to include discussion of tax increment financing (TIF) directly related to this plan. [3],[4]

July 31, 2007: Ordinance No. BG2007 - 33[5] passed unanimously by the City Commission authorized the TIF district on July 31, 2007. Attorney James Parsons reiterated that there was no financial risk to the City and that the City was only pledging a portion of the incremental revenues received from the TIF district. Comm. Wilkerson noted that with the TIF structure, 80% of state generated revenues in the District[6]

The Baseball Stadium and downtown development

One of the largest investments is a minor league baseball stadium. Investor Art Solomon has pledged to buy a minor league affiliated team if the city will commit to building the stadium.[7],[8] Along with the baseball stadium the DRA intends to invest in a upscale hotel, a small conference center, an 800 space parking garage, shops, restaurants and apartments.

SKyPAC

Another $20 million has been pledged to building the Southern Kentucky Performing Arts Center which would provide Broadway shows, symphonies and the like.[9]

Other developments

Other smaller developments are also being considered, like transforming the old junior high into a low income apartment complex. The Mayor Elaine Walker has been quoted saying, "Some of those project may all be private, but by virtue of the fact that they're in that area, that helps put us over the $200 million threshold."

Others like City Commission Bruce Wilkerson pledged that the city would not give money to the projects saying it was a "deal breaker."[10]

Community Leaders involved in the project

Many people have vested interests in the Bowling Green TIF District.

City Commission

In the public sector, the Bowling Green City Commission is charged with providing public oversight and protecting the interests of the citizens of Bowling Green. Its lected officials include Mayor Elaine Walker and the Commissioners: Brian Strow, Joe Denning, "Slim" Nash, and Bruce Wilkerson. The Bowling Green City Manager is Kevin DeFebbo who is charged with operating the city. In addition, James Parsons is on contract as the legal consultant for the City regarding the TIF District.

Other political involvement

Also, Warren County has a vested interest in the Bowling Green TIF District led by Judge-Executive Mike Buchanon and the Fiscal Court, composed of "Doc" Kaelin, Robert Donoho, Tommy Hunt, Eddie Beck, Richard Morgan and Terry Young.

Speaker and member of the House of Representatives, Jody Richards D-Bowling Green, originally earmarked $6.7 million dollars to start the project in 2000.[11]

Western Kentucky University, located in Bowling Green, has a strong interest in the TIF District and its President, Gary Ransdell, is actively engaged in seeing the project develop for the benefit of its professors and students.

Quasi-governmental units also have a keen interest in the TIF District succeeding. These include Cheryl Blaine, Executive Director for the Downtown Redevelopment Authority and Vicki Fitch, Executive Director of the Bowling Green Area Convention & Visitors Bureau.

Private sector endorsement

Certain private individuals have a vested interest in the success of the TIF District. Rick Kelley is the chief proponents of locating a proposed minor league Baseball Stadium in the TIF District. Mary Carpenter is the fundraiser hired to develop private funding for the proposed Performing Arts Center. Tommy Gumm is the President of Alliance Corporation, the lead developer and lead equity investor in the TIF District.

Organizations involved in the project

External links

Additional Reading

References

  1. ↑ Bowling Green Daily News, New Taxes, old projects, June 16, 2007
  2. ↑ budget leaner as revenues fall, June 6, 2008
  3. ↑ Meeting minutes of a special meeting for the Board of Commissioners of the city of Bowling Green, April 26, 2007
  4. ↑ Kentucky Finance and Administration Cabinet, Media Advisory, October 5, 2007
  5. ↑ Bowling Green City Commission Meeting Agenda, August 21 2007
  6. ↑ Municipal order authorizing the TIF district on July 31, 2007
  7. ↑ Bowling Green Daily News, New Taxes, old projects, June 16, 2007
  8. ↑ WBKO News, Bowling Green City Commission Decides To Issue TIF District Bonds, Feb. 7, 2008
  9. ↑ Bowling Green Daily News Financing downtown development, Feb. 3, 2007
  10. ↑ Bowling Green Daily News, Financing downtown redevelopment", Feb. 3, 2008
  11. ↑ New taxes, old projects , June 16, 2007
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