Clarksburg WV

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City of Clarksburg Proposes Second TIF District

 

Tax Increment Financing, or TIF, is a public financing method that is used as a subsidy for redevelopment, infrastructure and other community-improvement projects. 

Proposed TIF District No. 2 and Mountaineer Energy Park, MCP Real Estate Holding, LLC purchased the approximate 115 acres near/between North 4th Street and North 12th Street and Ohio Avenue for mixed use development; residential, industrial and office.  The proposed TIF amount is approximately $3.6 million and not to exceed $5 million for the purpose to develop public infrastructure. 

The City signed an engagement letter for City of Clarksburg Tax Increment Financing for Development District #2 and Mountaineer Energy Park project #1.  The letter confirms the City will engage Piper Jaffray as a placement agent respecting the bonds subject to conditions and limitations.  As the replacement agent, Piper will provide advice concerning the structure, timing, terms and other similar matters concerning the bonds. 

A public hearing will be held at the regular meeting of City Council on Thursday, August 18, 2016 at 7 PM in City Council Chambers. 

Creation of TIF District:

The creation of the development district to be designated as “City of Clarksburg Development District No.2” (the “TIF District”) and the financing of certain projects described in a Project Plan for the TIF District to be designated as “Mountaineer Energy Park Project No. 1” (the “Project Plan”). 

The proposed TIF District includes one parcel, specifically Coal District, Tax Map 287, Parcel 46, comprised of approximately 115 acres of contiguous property located in the area off of the 4th Street and 12th Street extensions off of Ohio Avenue.

MCP Real Estate Holding, LLC (the “Developer”) proposes a Project Plan for the TIF District to develop certain public infrastructure improvements within the TIF District, including water lines, sanitary sewer lines, stormwater drainage, road improvements and other related infrastructure and utilities improvements, all within or benefitting the proposed TIF District.

To finance the costs of the TIF Projects the City proposes to issue tax increment revenue bonds or other obligations (the “TIF Obligations”) in an amount not to exceed $5,000,000 with maturities not to exceed 30 years from the date of the creation of the TIF District.  Such obligations may be issued from time to time in one or more series.  Proceeds of the TIF Obligations are generally planned and expected to be used to (i) finance the costs of the TIF Projects, including architectural, engineering, legal and other professional fees and expenses; (ii) fund reserves for the TIF Obligations; (iii) fund capitalized interest on the TIF Obligations; and (iv) pay costs of issuance of the TIF Obligations, including relation to the creation of the TIF District and preparation and approval of the Project Plan and related costs.  A portion of the TIF Projects may also be paid directly from tax increment revenues. 

Further information regarding the proposed TIF District, the Project Plan, the TIF Projects and the TIF obligations are on file and available for inspection at the office of the City Clerk during regular business hours 8 AM – 4:30 PM, located at the City Clerk’s office in the City Municipal Building, located at 222 West Main Street. Clarksburg, West Virginia.  

See attached maps below: