DATE: December 31, 2014
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
SUBJECT:
title
Update on TIF District and Industrial Development Bonds
body
Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the McEwen Economic Development District, also known as the Tax Increment Financing (TIF) District
Background
Industrial Development corporations ("IDBs") are authorized under Tenn. Code Ann. ? 7-53-312 to prepare and submit to cities and counties an economic impact plan with respect to an area that includes an industrial park within the meaning of Tenn. Code Ann. ? 7-53-312 or a project within the meaning of Tenn. Code Ann. ? 7-53-101 and such other properties that the IDB determines will be directly improved or benefited due to the undertaking of such industrial park or project. Tennessee Code Annotated ? 7-53-312 also authorizes cities and counties to apply and pledge new incremental tax revenues, which arise from the area subject to the economic impact plan, to the IDB to promote economic development, to pay the cost of projects or to pay debt service on bonds or other obligations issued by the IDB to pay the costs of projects.
In 2005, the Tennessee Department of Economic & Community Development identified a headquarters relocation project and communicated with elected officials in Williamson County. The project was to be an office building for a major corporation and would be located on an approximately 50-acre portion. The Project Site was located east of I-65, north of McEwen, west of Carothers and south of Cool Springs Boulevard. The site, the corporate headquarters office to be constructed thereon and the furniture, machinery and equipment to be installed therein, are referred to collectively as the "Project." In order to make the Project financially feasible, the Industrial Development Board (IDB) of the City of Franklin...
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