The City of Sterling was presented with a plan to redevelop a site including a vacant former Wal-Mart store. The developer asked that the City provide TIF and sales tax assistance as well as lower cost debt in the form of Recovery Zone Facility Bonds in order to make the project financially feasible.
SB Friedman was engaged to conduct a Tax Increment Financing (TIF) eligibility study for the site and assist the City in the designation process for the TIF.
Working under a tight deadline, SB Friedman researched and analyzed the proposed district to determine eligibility, drafted the redevelopment plan and project document, and supported the noticing and public meeting aspects of establishing the TIF district per the law.
We also conducted a bond feasibility study for the Recovery Zone Facility Bonds issued in support of the project. The sources of funds for repayment of the bonds included sales taxes and rents from the two anchor tenants, Kohl’s and PetSmart. These sources produced debt coverage above the 1.25 times required for the issuance of Alternate Revenue Bonds under Illinois law.
Results: The TIF district was established in June of 2010. $6.1 million in Recovery Zone Facility Bonds were issued in July of 2010. The Kohl’s store opened in March of 2011.