Photo: Rob Smyjunas of Vandercar Holdings, Inc. turns $125K Check over to Monroe schools treasurer, Kelley Thorpe
by John Beagle
The Home Depot walls were being setup, yet the school had not signed off on the approval of the Vandercar 100% abatement deal. Read: Home Depot's Wall Up Before Monroe School Board
Here is the Vandercar Payment Discussion I had with Kelley Thorpe, Monroe Local Schools Treasurer:
Beagle: Can you provide me a list of scheduled payments expected from Vandercar and other builders at Corridor 75.
Thorpe: Vandercar is the only scheduled payee for Corridor 75. They were to pay $125,000 within 30 days of being granted permission to begin building by the city. This was the check they presented last night at the board meeting. The other $125,000 will be due on or before May 12, 2009. These payments are donations from Vandercar to the school district's Permanent Improvement Fund and will be used to fund renovations, improvements, and repairs to the existing facilities.
Beagle: Any comments regarding the holdup of agreement and subsequent payment?
Thorpe: The only holdup was getting the school's attorney, the city's attorney, and Vandercar's attorney to all agree whether or not the resolutions that the school board passed in the fall accepting the development agreement with the city met the statutory requirements for CRA approval. The agreement with the city called for a modification of the TIF revenue sharing, the city granting the abatement to Vandercar, and the city moving to a Post-94 CRA process so that they can't give more than a 50% abatement in the future without the school's approval. The school board did not approve the 100% abatement for Vandercar. Once the lawyer's all agreed that the resolutions passed in the fall accepting the development deal met the requirements and that the board did not need to take further action, then everyone was happy and the development can now proceed.
Beagle: Any other comments about changes in expected cash flow for the district?
Thorpe: We won't begin to see any income from the developments in the works (Vandercar, the Mall, etc) for several years. It will take at least 2 - 3 years for any of the developments to show up on tax bills and provide any income. Once that happens, the school will get 45% of the TIF revenue that the city collects from Vandercar. This is currently estimated to be about $250,000 per year for the 15 years of the abatement - or not quite $4 million. $250K a year in a budget of $20 million is not going to solve any financial problems that the school may be facing in the next few years with 3 emergency levies up for renewal in 2010 and 2011 unfortunately. This is equivalent to about 5 first-year teacher salaries & benefits a year.
Discuss: board and council at odds over language
City: Schools right about tax
School Board Meeting Agenda now