The Capital Improvement Authority met Monday to discuss the completion of the Golf Hill subdivision.
City Manager Molly McGovern brought the subject before the board. She said the plan still includes paying back any funds invested by Capital Improvements.
The tax increment funding plan created by the city, she said, will raise money to be used for paying off the bonds for the construction of the clubhouse. The TIF will use funds generated with the sale of property to pay back the funds invested. It will generate funds, she said, with, not only the property taxes generated by the homes built on the soon-to-be-sold lots but also by sales tax generated by The Golf Hill Grille.
“It’s my hope that as we sell lots, that we’ll reimburse,” she said. “I hope this is cash flow, I hope it’s not funded. I don’t want capital improvements to pay for this project. I can’t predict how things are going to work (due to the timing of lot sales), but that is my desire.”
She said approximately 30 people have expressed interest in purchasing the lots.
“I have more people on the list than I have lots,” she said.
McGovern said although those on the list have expressed interest, this does not equate a commitment.
Buyers will have one year from the sale of the lot or the completion of the road to build their home. Homes on the golf course will have nine different house plans from which to choose, with six exterior material choices. These plans will be presented for approval in the next Planning and Zoning Commission meeting.
They recently became ready to offer the wooded lots for sale, she said. The lots on the golf course side will be offered for sale after contractors cut in the road. That way, she said, potential buyers will be able to visualize how the lots will appear. Public Works Director Chad Birdsong said he estimates this will take a month or two.
Authority member Tray Harkins asked if VF Anderson’s bid of $640,000 will complete the work. McGovern said the work required the city to change the movement of dirt that they hope will not translate into extra cost for the city. She said they tried to keep the change as close to the original plan as possible.
The original plans called for the dirt movement to occur this winter. However, the wet weather did not allow for any work to occur.
The play occurring on the golf course will not allow for the repair of any damage caused by crossing the course before the season begins, she said. This limited dirt movement to around the outer ring of the subdivision. McGovern said this will allow dirt to be removed and used on other projects in the community.
Mary Lou Greim with the authority asked how much of Capital Improvement funds have been allocated so far. McGovern said approximately $1.395 million have been used on the project.
Greim asked if the authority did not approve any additional funding, where would the city obtain the money. McGovern said she did not have an answer for that.
Harkins said if the authority does not authorize additional funding, the site will be left as is. It needs to be finished, he said.
McGovern said she needs to generate TIF funds from 16 homes to break even. She said she predicts the city can generate $3.5 million through the project as a whole to pay back all funds used. The authority approved an additional $275,000 in funds to complete work on the subdivision.