Kokomo Tribune; Kokomo, Indiana

Local News

May 13, 2013

Tipton considers refinancing bonds

Redevelopment district renamed.

Tipton — Lower interest rates have the Tipton County Redevelopment Commission exploring whether to refinance construction bonds.

The bonds were issued for construction at the Chrysler plant in the western part of the county. Gary Malone, executive partner with accounting firm H.J. Umbaugh and Associates, said Thursday that since interest rates have declined in the past few years, there is the opportunity to save money.

The bonds were issued in 2009 to help finance the construction of the then-proposed Getrag Transmission plant at the intersection of U.S. 31 and Ind. 28. That plant was purchased by the Chrysler Group last year.

Malone said the bonds are being paid off through the creation of a Tax Increment Financing district with a property tax back-up. A TIF district captures the increase in tax revenues for use to pay for infrastructure improvements.

“When the bonds were issued, the interest rates were good,” Malone said.

At the time, the rate was 5 percent.

“Now they’re better,” Malone said.

He said if the bonds could be refinanced at 2 percent, the county would save $25,000 to $30,000 per year.

The Redevelopment Commission could refinance $2.6 million and lower the yearly payment from $430,000. The bonds are scheduled to be retired in 2020.

Attorney Rick Hall, with Barnes & Thornberg, said the county could realize a savings of $200,000 over the life of the bonds through refinancing.

He said those funds would go to help retire the $13.8 million in bonds owed to a trust of contractors that were not paid when Getrag Transmission filed for bankruptcy.

The bonds to the trust are scheduled to be retired in 2030.

Commission members directed Malone to see if there is any interest among banks to purchase the bonds.

In other business, the commission gave preliminary approval to change the designation of the Economic Recovery Area at the northeast intersection of U.S. 31 and Ind. 28.

Hall explained when it was created, it was known as the Getrag/Chrysler ERA and then the Abound Solar ERA.

He said since Chrysler purchased the property the designation should change.

Hall said this step was a needed to capture the personal property taxes paid by Chrysler for payment on the bonds issued for the property.

The plan commission, Tipton County Commissioners and redevelopment commission are required to approve the resolution before it takes effect.

For more on this story and other local news, subscribe to The Kokomo Tribune eEdition, or our print edition

1
Text Only | Photo Reprints
Local News
  • Gardening-Bee Sanctuaries-3 [Duplicate] Bee sanctuaries Bees are pulling a disappearing act. Honeybees are vanishing from their hives. Bumblebee numbers have crashed so radically that some species are believed extinct. Even native solitary bees are in decline. Food supplies dependent upon pollinators are

    April 24, 2014 1 Photo

  • FEMA's disaster decisions frustrate state, local leaders Pamela Jackson thought she was lucky to escape harm as a tornado bore down on her neighborhood last November. She huddled in a bathroom with her two disabled sons, critically ill husband and six other family members as the twister blew out windows an

    April 23, 2014

  • timthumb.jpg INDOT to install curbs on Markland

    Indiana Department of Transportation maintenance crews have been scheduled to install traffic separator curbs between opposing lanes of State Road 22/Markland Avenue during the week of April 28. Placement of the highly visible manufactured curbing is

    April 23, 2014 1 Photo

  • Farmers Market 01 Kokomo Downtown Farmers' Market gets facelift Pint-sized gardeners made homemade Chia Pets at the Kokomo Downtown Farmers' Market Saturday morning while their parents shopped for homegrown produce nearby. The kids packed grass seeds and dirt inside the disposable socks you get at shoe stores. Th

    April 23, 2014 3 Photos

  • FEMA grants disaster aid to Tipton County The Federal Emergency Management Agency has approved disaster aid for 19 Indiana counties hit by a January storm that brought paralyzing snow and frigid temperatures. Governor Mike Pence received word Tuesday that FEMA had granted his appeal for fede

    April 23, 2014

  • Native American inmate sues Miami Correctional Facility BUNKER HILL - A Native American inmate is suing the Miami Correctional Facility for violating his constitutional religious freedom after the prison last year terminated Native American worship services. Daniel Littlepage says in a class action lawsui

    April 23, 2014

  • Take Back the Night 17 Crowd rallies around domestic violence victims

    Doran Gwyn vividly remembers the night his stepdad came home from work and sat down at the table for supper. "He looked at the meal and said, 'What is this,'" Gwyn recalled. Then he took a bowl of food and smashed it against the ceiling in a rage and

    April 23, 2014 3 Photos

  • Tipton commission appointments get tangled up in confusion Months of confusion over a pair of appointments to two economic development commissions in Tipton County appear to be coming to an end, but not without its share of confusion. Single appointments to both the Tipton County Economic Development Commiss

    April 23, 2014

  • FEMA OKs aid for Tipton, 18 counties, but not Howard Co.

    The Federal Emergency Management Agency has approved disaster aid for 19 Indiana counties hit by a January storm that brought paralyzing snow and frigid readings.

    April 22, 2014

  • Energy-saving program powering down this year Ever wonder how energy efficient your house is? You can find out. For free. But not for long. Energizing Indiana, a 2-year-old initiative of the Indiana Utility Regulatory Commission, offers any homeowner in the state a free energy assessment for the

    April 22, 2014

Latest news
Featured Ads
Only on our website
AP Video
SKorea Ferry Toll Hits 156, Search Gets Tougher Video Shows Possible Syrian Gas Attack Cubs Superfans Celebrate Wrigley's 100th Raw: Cattle Truck Overturns in Texas Admirers Flock to Dole During Kansas Homecoming Raw: Erupting Volcanoes in Guatemala and Peru Alibaba IPO Could Be Largest Ever for Tech Firm FBI Joining Probe of Suburban NY 'Swatting' Call U.S. Paratroopers in Poland, Amid Ukraine Crisis US Reviews Clemency for Certain Inmates Raw: Violence Erupts in Rio Near Olympic Venue Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' S.C. Man Apologizes for Naked Walk in Wal-Mart Chief Mate: Crew Told to Escape After Passengers
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries