$11 million bond sale for downtown complex moves ahead

The city of Columbus is moving ahead with a planned bond sale to help fund a downtown grocery and apartment complex next to the Bartholomew County Jail on Second Street.

Developer Flaherty & Collins of Indianapolis is proposing a 15,000-square foot grocery store and a more than 55,150-square foot apartment building with about 200 units at the intersection of Lafayette Avenue and Second Street. The city is partnering with the developers to build the $40 million project, which would open in about three years.

Under the plan given its first approval by City Council this week, the city would issue  $11 million in bonds to help fund the project. The bonds would be repaid from property tax revenue generated in a tax increment financing district surrounding the project, essentially repaying the bonds through the development’s own property taxes.

The developers would guarantee a minimum of $500,000 in tax revenue annually to repay the bonds.

Another $800,000 thousand dollars for the project would come from cash in hand through the Columbus Redevelopment Commission. The city is also providing the property for the project.