Daily Newsletters
Account
Washington Evening Journal
111 North Marion Avenue
Washington, IA 52353
319-653-2191
Riverside pays county for TIF judgment
The JOURNAL
The City of Riverside has decided not to appeal the Oct. 29 judgment that required it to pay the county $350,000 in TIF (Tax Increment Finance) bonds. In fact, the city has already paid the county the full amount owed, which it did Wednesday.
The agreement in question is the one signed by Riverside and the county in 2005. In 2005, Riverside was under orders from the Department of Natural Resources
Andy Hallman
Sep. 30, 2018 7:31 pm
The JOURNAL
The City of Riverside has decided not to appeal the Oct. 29 judgment that required it to pay the county $350,000 in TIF (Tax Increment Finance) bonds. In fact, the city has already paid the county the full amount owed, which it did Wednesday.
The agreement in question is the one signed by Riverside and the county in 2005. In 2005, Riverside was under orders from the Department of Natural Resources (DNR) to improve its water and sewage system. The city was also considering how to supply a water and sewer system to the Riverside Casino east of town. Riverside had inadequate constitutional debt to finance the project, so it turned to the county for help.
The county agreed to issue $9.4 million in urban renewal tax increment revenue bonds to finance the water and sewer project. In return, Riverside would have to make payments of $175,000 to the county by July 1 of each year from 2008 to 2017. The city made its first payment in 2008 but did not make it in 2009 or 2010.
Instead of making the $175,000 annual payments, the city put the funds in a money market account. The reason the city did this was because it needed to ensure against the possibility it might lose the case and have to pay the county the full amount. However, had the city won the case, it could have used the $350,000 for other city expenses.
The Riverside City Council met with its attorney Paul Burns in a closed session before the council?s Nov. 15 meeting. According to Riverside City Administrator Tina Thomas, the council asked Burns to investigate a few things, and to agree to pay the bill pending Burns?s report on those issues. When Burns informed the council of his findings, the councilors unanimously agreed to support the decision to pay.
Had Riverside sought an appeal, Nov. 29 would have been its last day to file for one. The councilors want to move forward now that the case is behind them, said Thomas.
For the full story, see the Nov. 29 edition of The Washington Evening Journal
