The City Council on Thursday approved selling up to $6 million in taxable bonds so money will be available for other economic development projects like Greenville Technologies Inc. and Hy-Pro Filtration.
Economic development officials were able to lure both companies to Anderson last year in part because of cash incentives the city was able to provide the firms to build here.
Star Financial Bank agreed to buy the bonds at an interest rate of 4.2 percent, said Greg Winkler, interim economic development director. The bonds will be paid off over 12 years from property tax revenue generated by both GTI and Hy-Pro because they are part of the city consolidated Tax Increment Financing District.
TIF districts are created so that property taxes from new commercial, industrial and manufacturing businesses are captured and spent on infrastructure improvements within the district. Those improvements are then used as an economic development tool to attract more businesses to the city.
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