By Travis Gulbrandson
The Vermillion City Council took another “big step” in the Bliss Pointe development district project Monday.
That night, council members approved an agreement between the city and the Vermillion Chamber of Commerce & Development Company (VCDC) to provide repayment to Tax Increment District (TIF) #6 bond-holders.
“Thanks very much,” Mayor Jack Powell told the council when they approved the plan. “That’s a big step.”
Back in August, the council had approved the project plan for TIF #6, the purpose of which was to assist the VCDC with construction of infrastructure to serve approximately 77 lots in the first phase of the Bliss Pointe development.
Financing of the infrastructure improvements will come from a $1,732,000 private placement bond that was purchased in equal shares by CorTrust Bank, First Bank and Trust, First Dakota Bank, the Dakota Hospital Foundation and the University of South Dakota.
City Manager John Prescott said the bond proceeds will cover street, water, sanitary sewer and street light construction, while the city will be responsible for storm sewer installation costs.
Private bond proceeds will be repaid from property tax collections in the TIF district, Prescott said.
“The bond proceeds will be transferred from the city to the Vermillion Chamber of Commerce & Development Company,” he said. “Then, when the TIF funds are generated, the county will collect property taxes, and transfer those to the city, and those will be used to repay our five partners who are helping to bring about this improvement in the community.”
The infrastructure must be complete by Sept. 30, or the city has the option to terminate the agreement.
The plan was passed unanimously by the council.