In a Wednesday, October 3 meeting with Indiana Department of Local Government Finance (DLGF) Commissioner Cheryl Musgrave, Allen County Commissioner Nelson Peters and Fort Wayne Mayor Graham Richard received the state's approval for the Harrison Square bond financing. The decision was the latest authorization in the multi-step public approval process for the downtown catalyst project.
The state's endorsement puts the City in a stronger position when selling the $45.9 million bond to finance Harrison Square. The general obligation backing is viewed as a form of credit enhancement by the bond market. This provision will enable the City to secure a lower interest rate and save significant money for the public over the life of the bond.
“Our ability to retain and gain good jobs, to attract the talent the
new economy demands, requires a competitive city,” said Mayor Richard.
“Harrison Square sends a signal that Fort Wayne is one of those
first-choice communities. The positive state decision puts us one step
closer to the new jobs, new housing and new retail opportunities that
will help to make our downtown more vibrant.”
In presenting the Harrison Square case to the DLGF, the City had to
demonstrate its sound fiscal health and the sufficiency of revenue
streams to successfully conclude the project without the need for the
property tax support. In order to secure a favorable decision, the City
had to establish that it would most likely never need these resources
to repay the bond. In essence, the backup provision is interpreted by
potential bond buyers as an added layer of protection, an indicator of
a more desirable, credit-worthy project.
“I would like to express my appreciation to Commissioner Musgrave
working on behalf of Governor Daniels for expediting the decision on
this important economic development project for northeast Indiana,”
added Richard.
Previously, the project's financing proposal had been affirmed by the
Indiana Local Government Tax Control Board during its August 23
meeting. Other project approvals, including numerous public hearings,
have come from the Fort Wayne City Council, Fort Wayne Redevelopment
Commission, Fort Wayne Plan Commission and the Fort Wayne Redevelopment
Authority.