The debate over whether
West Lafayette should issue up to $7 million in economic development bonds for Faith West’s
development swayed two city council members from their support in last month’s
vote. But it wasn’t enough to block the bonds.
Council members from the
1st and 3rd districts — Eddie VanBogaert and Ann Hunt — joined Councilman Peter
Bunder, 2nd District, in opposing the bonds. But the bond issue still passed in
a 4-3 vote by the council.
Bunder
argued last month the bonds, he believed, crossed the line on separation of
church and state.
…
“This proposal offers very little in economic
development. It calls for us to issue up to $7 million in economic development
bonds for $1 million in jobs. It yields little or no tax revenue to the city.
“Economic
development usually increases the tax base. This is not economic development.”
…
The
city will now move forward to issue up to $7 million in bonds. JPMorgan Chase
will buy the bonds and Faith West will receive the proceeds from the sale.
There is no West Lafayette taxpayer money involved in the bonds and there is no
liability for the city. Faith West will be responsible to repay the bonds over
the next 20 years. By that time, the city will know whether the project was an
economic development boom or bust.
See
the full story here:
Earlier posts on this
issue may be found here:
