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WINDSOR LOCKS — The Board of Selectmen has approved a series of amendments to the credit enhancement agreement for the proposed All Sports Village complex.
The original agreement was approved last year, but due to a lack of interest by commercial lenders, principal developer Andrew Borgia is pursuing the issuance of tax-exempt revenue bonds for a portion of the project costs, according to an email from lawyer Mike Andreana who represents JABS Sports Management, Borgia’s company.
The proposed complex, at the northeast corner of Old County Road and Route 20, is in a Tax Increment Financing, or TIF, district. TIF districts allow municipalities to provide annual rebates of taxes to new developments that have increased the taxable value of properties within the districts. The rebates may come only from the increased tax revenue generated — known as the increment — meaning the town cannot collect less in taxes than it did before the TIF was established.
All increased revenues from the developments are deposited into a special TIF fund, which is used to pay for improvements to the district, such as infrastructure changes. Rebates are taken from that fund, and the remainder that isn’t used for local improvements is deposited into the general fund at the end of the fiscal year.
The first of the changes approved by the Board of Selectmen eliminates the fixed assessment agreement, which is needed to issue the bonds on a tax-exempt basis. The town will assess and tax the TIF properties like it would any other property in town.
The second amendment makes changes to the definition of “Developer Share.”
According to Andreana, given current discussions with hotels and retailers and the demands of the bond market, the definition of “Developer Share” needs to be amended so that the project receives 90% of the tax increment eevenues throughout the term of the credit enhancement agreement.
“Bond investors want the entire project completed, but don’t want their tax increment revenues reduced because it makes more sense for a retailer to take title to a parcel within the TIF District,” Andreana said.
The final amendment makes it so investment earnings go to the bondholders. Because the tax increment revenues will be deposited with a bond trustee, the earnings from such monies will need to stay with the trustee.
The bonds are to be issued by MuniCap, a public finance consulting firm based in Columbia, Maryland, that specializes in the public finance aspects of redevelopment, according to its website. The firm also has offices in Texas, South Carolina, Pennsylvania, and Virginia.
Borgia has said he plans to close on the property by Oct. 31. According to the project’s site plans, the developers are proposing eight outdoor turf fields, 20 basketball courts inside a 220,800-square-foot building, restaurants, retail shops, and two 150-room hotels.
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