PRINCE GEORGE’S COUNTY COUNCIL UNANIMOUSLY APPROVES SPECIAL TAXING DISTRICT
View Full Release, 2016/11/02
CALGARY, Alberta--(BUSINESS WIRE)--Walton Westphalia Development Corporation (the “Corporation”) is pleased to announce that Prince George’s County Council has voted unanimously to establish the “Westphalia Town Center Development District” and the “Westphalia Town Center special taxing district”.
This approval is the next material step which, upon receipt of further bond sale authorization legislation still to be introduced and with the completion of other steps, will enable tax increment financing (“TIF”) bonds to be issued in the future, the proceeds of which will be used to primarily finance transportation infrastructure in and around the Westphalia project. This is a very positive and exciting development for the Corporation and the Westphalia project and will significantly assist in the financing of the development thereof.
A TIF is a public financing method used for financing public infrastructure improvement projects as a part of a larger development project. A municipality, through a TIF, leverages potential future gains in municipal taxes by offering sale of bonds to the public, the proceeds of which are used to pay for the proposed infrastructure. The bonds are then paid off in the future with the municipal tax revenues resulting from increased development in the development district.
It is the Corporation’s proposal that the County sell bonds for the benefit of the area surrounding the Westphalia Town Center, which includes the Corporation’s property. It is proposed that these bonds be sold in three series over the life of the Westphalia project with the first series being sold and the proceeds available by the end of the second quarter of 2017. The above timing is an estimate only and is subject to change. Over the next few months, County staff and the County’s external consultants will undertake their review of, and due diligence on, the Westphalia development and the TIF financing proposal.