Scottsburg City Council approves bond ordinance for 75-unit residential development

The Scottsburg City Council convened on April 14, 2025, to discuss significant developments regarding the city's infrastructure financing through a bond ordinance. The meeting focused on the approval process for a bond issue aimed at funding a residential development project.

The council began with a motion to advance the 2025-6 ordinance, which authorizes the city to issue bonds for tax blocking on the funds. After a brief discussion, the motion was unanimously approved on its first reading. Matt Duncan, an attorney representing the city’s bond counsel, provided an overview of the bond financing process and the timeline for the project.

Duncan explained that the city applied for a grant and loan through the Indiana Finance Authority's residential infrastructure fund program. The bond ordinance allows for a maximum borrowing amount of $3.5 million, although the actual amount awarded is currently $1.875 million. This funding will support the construction of approximately 75 single-family homes in the first phase of the development, managed by Scottsburg Maple Run LLC.

The council discussed the importance of the financing agreement, which will outline stipulations for the developer, including deadlines for project completion and restrictions on property transfers. The agreement is designed to protect the city financially, ensuring that if the tax increment financing (TIF) revenues fall short, the developer will cover any shortfalls.

Duncan emphasized that the bond funds would be used specifically for public infrastructure improvements, such as roadways, sidewalks, and utilities, rather than for the construction of the homes themselves. The reimbursement structure of the financing agreement ensures that the city will only pay for verified expenses incurred by the developer.

The council also noted that the bonds would not count against the city's debt limit, as they are secured solely by the TIF generated from the new housing development. The meeting concluded with a reminder of the upcoming public hearing scheduled for April 24, where the Economic Development Commission will further discuss the financing.

Overall, the council's discussions highlighted a proactive approach to enhancing Scottsburg's residential infrastructure while ensuring financial safeguards for the city. The next steps include finalizing the bond ordinance on April 28 and preparing for the bond closing on May 30.