Council approves refinancing of Burkhart Road TIF to capture lower rates

The Evansville Common Council on Jan. 12 adopted Ordinance G2026-04, consenting to the Vanderburgh County Redevelopment Commission's plan to refund and refinance bonds tied to the Burkhart Road tax increment financing (TIF) district.

Craig Emmick, counsel representing the redevelopment commission, told the council the ordinance authorizes refinancing of up to $18 million and that the preliminary refinancing target is $12,365,000. "We are refinancing a total amount of debt, in the amount of $12,365,000," Emmick said, adding the refinance is timed to capture lower market interest rates. He estimated the city's taxpayers could see savings "to the tune of approximately $2,400,000," and explained that the savings translate to roughly $480,000 annually (about $240,000 per semiannual payment).

Emmick said bond counsel and consultants plan to price and post the offering on Jan. 22 with a hoped-for closing around Feb. 5 to ensure the next scheduled bond payment is captured at the lower rate. He emphasized the refinance would not expand the TIF area or lengthen repayment terms; the purpose is to lower interest cost on existing obligations. "This does not expand or enlarge the TIF area," he said.

Council members asked about timing, the review cadence for bonds and whether the city could refinance again if rates fall further. Emmick said the city and county regularly review bond opportunities and that fees and practical limits make continual refinancing impractical, but further refinancing would be considered if market conditions warranted.

The ordinance passed on a roll-call vote of 8 ayes and 0 nays. The council's approval authorizes the redevelopment commission to proceed with the refunding process under the parameters described in the ordinance.

Next steps: bond counsel will post pricing on Jan. 22 and pursue a closing in early February; the council's action gives the redevelopment commission the city's consent to proceed.