Funding for infrastructure upgrades for GM plant moves forward
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The St. Joseph County Council this week approved a resolution allowing the county’s redevelopment authority to issue bonds of up to $50 million to support infrastructure improvements around the $3 billion General Motors electric vehicle battery site in New Carlisle.
The county is expected to cover the cost through lease financing supported by tax increment financing in the area and financial commitments made by GM under its development agreement with the county. The bonds are expected to mature no later than February 2043.
County officials, in a meeting Tuesday morning, said TIF payments and commitments from GM should cover the debt service payments at 150%, meaning the county doesn’t expect it will need to increase property owners’ taxes to pay for the bonds.
The step comes after it was revealed last month county officials have been in talks to bring another large employer, potentially the size of GM, to the New Carlisle Economic Development Area.
St. Joseph County Economic Development Director Bill Schalliol told Inside INdiana Business this week that the company, which has used the moniker Razor5 in public development findings, has been conducting site exploration work in the area in recent weeks and that their work is still in pre-development phases. Additional updates on the project could come early next year.
The GM site, due to unseasonably warm weather, is moving ahead of schedule, Schalliol said Tuesday. Crews are expected to begin foundation work on the site in the next several weeks.