The man behind the latest plans for Interstate 69 and Ind. 18 says he plans to cover the loans that would finance the project.
Before addressing the city council Tuesday night, James F. "Jim" O'Connor, a health care executive from Philadelphia, Penn., also addressed members of the press, the Marion Redevelopment Commission and the Marion Planning Commission Tuesday afternoon.
O'Connor has requested that the council authorize the city to issue up to $60 million in tax increment finance (TIF) bonds to help finance his plans to develop more than 100 acres for a variety of uses. Attorney Richard Starkey, a partner in the Indianapolis office of the national law and lobbying firm Barnes & Thornburg, said the bonds would be payable solely from the TIF revenue generated by development on certain land parcels in the northwest block of I-69 and Ind. 18.
"If they don't build it, they don't get the (TIF) money," Starkey said at the city council meeting.
TIF revenue is a type of special property tax generated in designated areas known as TIF districts. Instead of being distributed among all local governments that serve a TIF district area, newer property taxes generated in TIF districts are earmarked. State law allows such taxes to go to the local government that created the TIF district — in this case, Marion — to be used for certain redevelopment and infrastructure projects that officials believe will benefit the public.
Historically, the TIF-backed bonds issued by Marion have been purchased by local banks, meaning the banks were the lenders that provided the loan proceeds upfront in exchange for being repaid over time plus interest. In this case, O'Connor said he is working with a bank that's willing to lend him up to $60 million so he can purchase the bonds.
"We'll buy the TIF (bonds) so it's our money being used," O'Connor said of financing the project.
Marion Redevelopment Commission president Madonna French, a former city development director, said O'Connor is taking the risk and only needs the city's help in making the TIF bonds available.
"To me, it's no risk to the city — and I don't think you can get a better project than that," she said.
O'Connor has also offered to help some of the people who have lost money on past plans for I-69 and Ind. 18, he said, as a gesture of goodwill to the community and as a way of garnering support for his plans despite past failures.
O'Connor has offered to purchase 12 acres owned by Marion Sports Authority for $50,000, he said. The nonprofit created for public benefit was formed with the intention of supporting youth sports with proceeds of a multipurpose arena previously planned for the I-69 and Ind. 18 area.
Bank records show an initial payment of $15,000 was wired to Marion Sports Authority from Delaware Valley Residential Care on Dec. 3. As part of his agreement with the Sports Authority, knowing the 12 acres is valued at more than $50,000, O'Connor said he has also offered to give the Boys and Girls Club of Grant County $50,000 per year for at least 10 years.
O'Connor said he also offered eight doctors who lost money to Marion Land Development a share in the medical office space that's part of his development plans.
He declined to name the individuals he was referring to, but public documents from past bond deals list 15 "non-voting members" of Marion Land Development that made "capital contributions" of "cash."
They are: David J. Raabe ($50,000), Salil and Monika Rajmaira ($100,000), Kenton and Alison Moore ($25,000), Donald J. Bruns ($150,000), J. Courtney Gorman ($100,000), Dhan and Ranjana Raj ($100,000), Dawn Lagerkrist ($100,000), Mark Westfall ($25,000), Marc Schultz ($50,000), Chris and Heather Wilson ($25,000), John Roediger ($50,000), G.S. Ely Trust ($50,000), William and Susan Hill Lifetime Trust ($100,000), Vogelsang Family Revocable Trust ($50,000), Jon and Anne Bone ($50,000).