The town of Windsor is not responsible for debt incurred during the construction of the proposed Great Pond Village development. Financial responsibility of the development have been passed on to developers and the Great Pond Improvement District — a group tasked with owning and paying the debt of bonds issued to finance public infrastructure on the site.
Members of the Town Council's finance committee met Monday night and discussed particulars of an intended agreement between the Town of Windsor and the special district that would legally ensure Great Pond's financial independence and service of debt.
In anticipation of increased value and property tax revenue from the development, town officials plan to enter into an agreement to refund 50 percent of all additional tax revenue generated by real estate development back to the Great Pond Village Improvement District on an annual basis, providing the district with the funds to pay off its debt.
Potential additional tax revenue, called incremental tax revenue, was determined to be sufficient to finance the development's construction when economic consulting firm TischlerBise, Inc. conducted a financial impact analysis of the 15 to 20-year project in 2011.
Under the agreement, which must be approved by the town council, the Town would be legally responsible for depositing the district's share of tax revenue on an annual basis until the group's debt service is paid in full or 40 years after the agreement has been made.
In addition, the town would only be responsible for giving the special district 50 percent of the eligible tax revenue it collects, meaning the town is not responsible in the event that taxes go unpaid.
The Town Council will hold its next meeting on Tues., Jan. 17.