The resolution allows the city to issue up to $8.5 million in bonds to finance infrastructure improvements in the Clipper Mill Development District, established as a TIF (Tax Increment Financing) District. The funding agreement between the city and the developer, Clipper Mill Redevelopment Company, LLC, outlines permitted uses and disbursement procedures for $5.5 million in net bond proceeds for the project. The developer is an entity established by Struever Bros. Eccles & Rouse, Inc.
"The redevelopment of Clipper Mill is an important economic development project for the city and in particular for the Woodberry community," said BDC President M. J. "Jay" Brodie. "A substantial private investment is being made to create a unique mixed-use community, rejuvenating a blighted site that has been vacant for many years."
Clipper Mill, a 19th century mill property in the Jones Falls Valley area, is being redeveloped as 90,800 square feet of office and artisan/industrial space, 120 market-rate apartments--82 in a new structure called The Mill Race Apartments and 38 loft-style units in a renovated building--plus 101 for-sale condominiums, townhouses and detached homes. The $58 million project, expected to be completed by end of the summer 2006, will also include an extension of the Jones Falls Trail for hiking and biking.
The project is situated on approximately 17.17 acres in the north central neighborhood of Woodberry (west of the Hampden community and I-83). The site is adjacent to Druid Hill Park on the west and the Jones Falls Valley on the east. A light rail stop is within walking distance.
The site was originally a machine manufacturing and foundry plant founded in 1853. Five historic buildings remain on the site in various stages of disrepair. One former building and part of a second building were destroyed in by fire in 1995. Clipper Miller Redevelopment Company acquired the site in April 2003.
Under the TIF, the city will issue special obligation bonds and pledge the local real property tax increments generated by the Clipper Mill redevelopment as the repayment source for the bonds. The Development District and the Special Taxing District for Clipper Mill were created by City Council ordinances and approved by the Mayor at the end of 2003. Both districts have the same geographic boundaries.
The bonds will be used for the construction and renovation of roads, alleys and the installation of curbs, gutters and sidewalks, lighting, landscaping and utilities, including water, sanitary and storm sewers and a duct bank. The remainder of the gross bond proceeds will be used to fund reserve accounts, capitalized interest and issuance costs.
The bonds are not subject to the full faith and credit or the taxing power of the city, except for the pledge of incremental real property tax and special tax revenues, subject to appropriation on an annual basis. If the incremental real property taxes are insufficient to cover debt service on the bonds, a special tax will be levied on Clipper Mill property owners.