Jeff Branscome writes about Spotsylvania County.
$34 million and 5,925 homes and stores
During a work session today on the Summit Crossing rezoning, the financial analysis put the project into perspective in a way no one has done yet. With the rezoning, Tricord is proposing a TIF to fund a new I-95 interchange and Summit Crossing Parkway and a CDA assessment would cover any bond debt shortfall that the TIF does not pay.
It is estimated the bonds would need to cover $131 million over the life of the CDA (2011-2040), but that is not the total cost of the infrastructure. There are other sources of revenue, about $29 million, that Tricord anticipates from grants and the federal government, or they pay it.
"Ultimately it falls back to us. So, yes, we do have skin in this game," said Tricord executive Mike Jones.
After computing the numbers using a bunch of assumptions, the Davenport financial advisor provided this statement: The county would end up "paying" $34 million for a new interchange and the parkway. The advisor punched in the project’s demand on service costs to the county to support the development, bond debt (although it’s not really the county responsibility, the TIF takes revenue from the project that the county would otherwise get) and came up with the total $34 million the county would end up paying for the lifetime of the CDA.
Ryan Clarke, an advisor for Tricord, said this project provides a plan of finance to build this interchange that the county board says it wants.
"We believe these public infrastructure improvements are going to open up that entire area and bring in other revenue to the county," Jones said.
Good deal? Bad deal?