Cold Spring City Council took steps at its meeting last week to move forward on a commercial development project.
At a special meeting last Tuesday, council approved the annexation of 27 acres of unincorporated Campbell County between U.S. Route 27 and AA Highway for the development. Annexing this land will add it to the city of Cold Spring.
The proposed area to be developed by Midland Atlantic Properties comprises 53 acres on Route 27, including the annexed land.
The council also approved issuing industrial revenue bonds to assist with project financing in place of receiving real estate tax from the developer for the first 40 years.
“It is a 40-year bond,” said city attorney Brandon Voelker. “So what would happen is that for 40 years the developer would pay a ‘pilot payment,’ in lieu of taxes that would be divided with 60% of each payment going toward the bond, and the remaining 40% going to the city.”
Voelker said that the municipalities often give up real estate taxes because they “make a lot more money in payroll tax. The revenue that paves the streets is generally tied to payroll tax.”
The next steps for the project include a review by the city’s planning and zoning board to determine the appropriate use of the land before making its way back to city council for final approval.
“The planning and zoning board will conduct a public hearing for input about that recommendation, and we’ll come back to you all so this is nothing more than a first reading,” Voelker said.