By Alan Johnson, IDB member
Thursday night (12.20.18) the Lakeland Industrial Development Board (IDB) held a special meeting regarding a resolution to approve the Development and Financing Agreement between the Lakeland IDB and Lakeland Commons, LP with respect to the development proposed at the southwest corner of U.S. Highway 70 and Seed Tick Rd. The Economic Impact Plan for the $50 million project has already been unanimously approved by both the IDB and the BOC (Board of Commissioners) in mid-November, and the approved agreement is the last step required before the developers can formally secure financing through Simmons Bank.
Link to agenda: https://tn-lakeland.civicplus.com/ArchiveCenter/ViewFile/Item/807
The Development and Financing Agreement sets forth the relationship between the Developers (Vince Smith and David Andrews) and the Lakeland IDB. Under this agreement, the IDB will enter into a Loan Agreement for $5.5 million, which will be repaid by Tax Increment Financing (TIF) revenues derived from the future increased taxes generated by the project. The project is expected to generate $63.3 million in economic impact and 736 new jobs for the City of Lakeland during the period of the agreement. The $5.5 million will be used for specific “eligible costs,” necessary at the beginning of the project. The “eligible costs” are defined in the Agreement and include design, construction, and installation of infrastructure elements, such as sewage, utilities, streets and street modifications, curbs and gutters, etc…
The meeting started with video-taped interview questions about the project from a team of journalism students from Arlington High School. Following the interview, Mayor Mike Cunningham and Commissioner Richard Gonzales formally introduced themselves to the IDB and thanked the Board for their volunteer contributions. They both agreed that economic development was a key element of their administration and they looked forward to an ongoing relationship with the Board.
Al Bright Jr., attorney for the IDB, followed with a review of the various elements of the Agreement, and reiterated that the Developers were the guarantors for the TIF loan and there is no debt being assumed by the City or the IDB. The role of the IDB is to pledge future TIF revenues to be used to pay off the loan, something that the Developers can’t legally do themselves. Mr. Bright explained “The only risk the City of Lakeland has is what the finished development looks like.” He continued by stating that he had faith that the design standards regulated by the BOC, City Planner, and associated committees would ensure a development that Lakeland would be proud of. Others at the meeting added that they were familiar with the Developers’ other projects and were impressed by the vision, reputation and quality of their projects.
The resolution was passed with a unanimous vote. When Mr. Smith was asked when he planned on starting the project, he replied “as soon as our plan is approved.” Since financing through Simmons Bank is pre-approved, construction on phase one is expected to begin within the next few months and take approximately one year.
The mixed-use development is planned to include restaurants, professional offices, local services like dry cleaning, boutique retail and upscale multi-family residential. If all goes as planned, the Developer also intends on donating a parcel or parcels of land to the City of Lakeland for use as they see fit. The vision is for the development to be a central, town square-like, setting where community events can take place.
