Spencer Redevelopment Commission sidesteps TIF debt, eyes commercial growth

A recent stroke of financial luck and strategic maneuvering dominated the Spencer Redevelopment Commission's special meeting on Feb. 25. Highlighting the evening was the news that the town will no longer need to pledge residential tax revenues toward its sewage project, potentially saving the town's long-term funding flexibility.

A Win for Ratepayers

Initially, the commission met to consider a resolution pledging Tax Increment Financing (TIF) revenues to pay for sewage works revenue bonds. However, town attorney Richard Lorenz announced that lower-than-expected project costs have rendered the pledge unnecessary.

The winning bid for the town's planned sewer improvements project came in at an eye-catching $7,777,777.77, a figure Lorenz noted was well below the initial estimate.

"It's been suggested that the combination of the loan and grant, together with the project bids that were received, amounts to better than a 1.5-million-dollar benefit to the ratepayers," Lorenz explained.

Beyond the immediate savings, the decision to forgo the TIF pledge protects the town's future. Because the debt won't be issued against the residential TIF, a "20-year clock" on the TIF's expiration will not be triggered.

"If the debt is not issued there is no expiration date," Lorenz said. "By removing the TIF pledge from the deal, we will not start the 20-year clock."

Former Riddle Property Prepared for Sale

The commission also shifted its focus to the former Riddle Tractor Sales property at North Short and West Morgan Streets. The town purchased the six-lot site in 2023 and is now looking to offload a portion of it to a private developer.

An unidentified company has expressed interest in two lots formerly used for equipment sales. To facilitate a sale, the commission voted unanimously to transfer those two lots from the Town of Spencer to the Redevelopment Commission.

The Proposed Timeline

March 31: Target date for two commercial appraisals (estimated at $6,000 each).

April 22 & 29: Public notice of the property disposition to be published.

May 13: Commission meets to receive proposals and purchase prices.

June 30: Expected closing date for the sale.

Lorenz noted that if no other bids are received during the public process, the town can negotiate directly with the interested party.

"The bottom line is we believe that the sales of these two lots will pay for and extinguish the loan that we have on the properties in its totality," Lorenz said, leaving the remaining four lots as a "net gain."

The other four lots are already being eyed for community use; the south-side lots are a potential future site for the Owen Valley Fire Territory, while an existing building to the east is currently used by the Spencer Street Department.

Housing and Aerospace Interest

Before adjourning, Lorenz provided a glimpse into Spencer's growing economic momentum. He cited interest from an aerospace industry employer looking to establish a local presence, as well as a proposal for a 40-acre residential development on County Line Road that could bring 80 new homes to the area.

"We keep making these little inroads that are very valuable," Lorenz said. "They are coming along at just the right pace that we can almost keep up with them."

The Spencer Redevelopment Commission consists of members Wally DeFord, Evan McKalip, Ed Hines, Gary Brinson and ex-officio member Andy Cline.