This type of financing places the amount of increased taxes from improvements in the actual park area into a fund which is then used to pay off the bonds, each time the owners of the park pay their property taxes.
The bonds are non-recourse bonds which means neither the county nor the city would be liable to pay the bonds off if the venture failed. They are backed by the credit of the developer.
Dr. Mark Burton, UT economist, again presented an economic impact study. He also explained that while the original figures used were collected by the developer, he did double check the accuracy of those figures before preparing this report.
Burton also pointed out that this type of development is usually less expensive in terms of infrastructure than most other types.
“It isn’t no-cost, but it’s lower than using the same area for town houses, for example,” he said.
Also in part due to a letter from a local resident Dave Kirkey, Tennessee Department of Transportation Commissioner Gerald Nicely sent Mayor Don Fox a “Letter of Intent” describing how the TDOT could help with funding for a connector road and improvements at both interstate exits which would serve the park.
“This is the strongest letter of intent I’ve ever seen without first submitting plans,” Fox said.
The Bible Park USA is proposed to be built on a 113-acre tract that fronts I-40 between Cainsville Road and Tater Peeler Road. Estimated cost of the development is $175 million.
Staff Writer Connie Esh may be contacted at email@example.com