I-69, Ind. 18 project on Marion City Council agenda

The group is requesting to take out a TIF bonds to aid with the development. The bonds are not to exceed $60 million.

The new development has four main projects: a sports and entertainment arena which would be used for professional hockey, basketball, concerts and other events, sporting tournament center, market rate active adult community which would feature housing geared to the baby boomer generation and a medical office.

Marion Mayor Wayne Seybold said a common misconception is that the city would loan the $60 million.

"Everybody assumes that the city is going to hand $60million," he said. "That is not the case. The city can't just grant the money. The only way you get the bonds is if they can prove to the bank that they can pay the whole project back."

According to the packet council members received, the company proposed that the city issue its taxable economic development revenue bonds in one or more series in an aggregate principal amount not to exceed $60 million for the purpose of financing the project.

To receive the total $60 million, Seybold said the company has to invest well over that amount and if they don't the city of Marion will not have to pay anything.

"TIF doesn't care who owns the property," he said. "You can't lose money on a TIF deal. The taxes always get paid."

Seybold said worst case scenario the property would go back to the city and they would sell it.

"It doesn't go back on Marion," he said. "There is no bond if it doesn't materialize. The bank is the one giving the money."

Seybold said Marion Sports and Entertainment Group is asking "If we do the project would the city be willing to take the new taxes and invest them into the project. If we say no, they are not going to do the project."

Council member Madonna French, R-Ward 2, said she has many questions for the upcoming meeting.

"I haven't heard the details for the project," she said. "I've been briefed. I'm reserving my comment for the actual project."

French said she needed to know more about the developer's background and businesses.

She said she wouldn't let other projects that were meant to be built on the property hinder her decision.

"For me this project stands alone," she said. "I think (the developer's) efforts shouldn't be clouded by somebody else. Any development is welcomed in my opinion provided that the city isn't on the hook if it doesn't materialize. I won't put the city at risk again."

Marion City Council President Joselyn Whitticker said she also has many questions.

"I need to know who the developers are and what this cost would be to the city of Marion in future years," she said. "Are they willing to have a performance bond? If you say you care about the city and want growth, why not be willing to be a part of growth? Why must citizens pay for that growth and prosperity?"

Whitticker said she still has an issue with the Marion Sports Authority.

"Where is all the paperwork with the IRS," she said. "Where is the $3 million? Some people say you are living in the past. I guess I am but I'm living in the future too. Everybody in Marion wants success."

Whitticker said this bid is has new aspects to it.

"Things we are seeing with this bid that we haven't seen before," she said. "We had not seen the entire development scheme. WE get the policy but not received the actual layout or plan. (Developer Jim O'Connor) wanted to meet with us individually. I'm skeptical of that. Why can't the discussion be done in a public forum? Had we not had so many issues with failed deals maybe I wouldn't feel so skeptical. Why has there been so much secrecy about it?"

According to the packet, the bonds in the aggregate principal amount is not to exceed $60 million shall be executed at or prior to the closing date by the manual or facsimile signatures of the mayor and the clerk be dated as of the date of their deliver; mature on a date not later than 25 years after the date on which the first series of the bonds is issued.