Adam Plagge, executive director of Fairfield Economic Development Association, contacted The Ledger to clarify two items in the Jefferson County Board of Supervisors meeting story about Heartland Co-op incentives published Tuesday.
A general obligation bond, designed to be paid for using Heartland Co-op property tax revenue, would attract a lower interest rate than a TIF revenue bond not backed by the full faith, credit and taxing authority of the county.
Due to the general obligation bond’s lower interest rate, it could potentially be paid off sooner than a TIF revenue bond.
Projections for Heartland property tax revenue beyond what is needed to service the bond are subject to the elevator’s property tax assessment, bond interest rates and road construction costs. The example general obligation bond presented to the board Monday estimates Heartland’s property taxes will exceed annual debt service costs by $80,000. These funds would be available for additional construction projects, to pay off the bond or to incentivize Heartland depending on how the project is structured.