Cabela's closer to $18 million loan from city of Greenwood

Daily Journal of Johnson County

Sporting goods retailer Cabela's has one more hurdle to cross before getting an $18 million loan from the city of Greewnood.

On Monday, two boards recommended that the Greenwood City Council approve an arrangement that would allow the outdoors company to get a loan from the city and pay it back with taxes it would owe on property at Interstate 65 and County Line Road.

The 100-acres of farmland, when fully developed into a Cabela's store, water park and additional stores and restaurants, will be valued on the property tax rolls at an estimated $102 million, according to Cabela's, a financial analysis and attorneys hired by the city.

Typically, when a taxing district, such as a school, city government or library, gets a huge increase in the total worth of all properties, known as assessed valuation, the tax burden to fund those governments is shared among more taxpayers, sometimes lowering or holding steady each taxpayer's responsibility while governments increase services and build more schools.

But the Cabela's property is in a special tax district that funnels all property taxes from new development to pay for infrastructure improvements, such as the expansion of Emerson Avenue, the new fire station or the planned expansion of Graham Road. That means Clark-Pleasant schools doesn't receive any of the tax money.

The city is proposing to carve out another district inside that district, where the tax revenue will go only to pay back the Cabela's bond for about the next 20 years.

The city council is expected to vote on the recommendation on July 16.