TIF funding used to develop Orleans Way
Jun. 8, 2022
Source: Rankin County News by Linda Horton
BRANDON - There are 112 acres sitting on the south and west side of Orleans Way near Home Depot that is ripe for development. Mirror Lake Land Company, LLC (Ergon)is taking steps to do just that.
The City of Brandon just adopted a TIF (Tax Increment Financing) plan for Orleans Way development.
Chris Gouras, Gouras & Associates represent Ergon, explained that the 112 acres lies south of Home Depot and west of Brandon to the City Limit sign for the city of Pearl.
"The primary purpose of the plan is to designate this 112-acre property as a TIF increment district whereby the City will be able to use future ad valorem and sales to reimburse the developers, Ergon and Mirror Lake Land Company for infrastructure costs in connection with the project," Gouras said.
According to Gouras, the development is a mixed-use project that proposes multiple uses between multi-family, assisted living, senior living, retail, grocery stores, restaurants, car dealership, and hotel.
"Obviously, once this infrastructure starts, there will be folks who have been thinking about locating here who will want to talk even more about it," he said. "Ergon has been in discussions and negotiations with several different end-users."
Gouras outlined some of the benefits of developing the property on Orleans Way.
"He said, presently, the city (Brandon) receives about $1,100 per year in property tax from the development. Fully built out, we believe it is going to represent over $100 million in private investment and, we believe it will generate about $500,000 in city tax property taxes."
He said he thought the school district (Ranking County School District) was going to benefit from this as well.
"Presently, the school district receives about $2,000 a year in property taxes, "Gouras said. "We expect those taxes to increase to over $800,000 a year when the project is completed. We also think the taxes on food, beverages, and lodging will generate some revenue."
Gouras pointed out that one of the key elements is that his client has to finance the project in its entirety, put the infrastructure in, and build it to city code and standard. And, on top of that, the client has to create the private investment that generates those taxes.
"We have to have enough built to generate $2 million in bonds," he said. "This plan allows us to come to the city and ask to release those bonds in a series on a $7.5 million in TIF bonds. I cannot imagine us coming more than twice."
Mayor Butch Lee said the development plan gives the developer 10 years to get the bonds issued.
"We are not giving any- thing away, Lee said. "This is tomorrows tax dollars that we are putting into infrastructure today. We are not reaching out and saying I think I'm going to get this or that. We know what the concrete numbers are before we ever pull the trigger to issue bonds.
According to all of those involved in the project, building a bridge across the creek that runs through the property is priority one.
"I think the time is now," said Jim Dafoe with Ergon. "We have never been able to get across that creek, which is about 120-feet across. This is very expensive. And, the improvements on Crossgates Blvd. have increased interest in this area."
Dafoe said the developers are in negotiations with a developer who has built a couple of hotels in Flowood.
"There are a couple of car dealerships showing interest," he said. "One of them has another location in Brandon and they are considering changing locations. We had a car dealership ready to go with property next to Home Depot. But, Home Depot did not want a car dealership right next to their property.
No names of any of the interested properties have been released at this time.
As you navigate our website, you can use the “Add Page to Report” button to add any page or property to a custom report that you can print out or save.