Item Coversheet
City of Independence
BILL NO. 21-507Ord.No:          19217

Agenda Title:

21-507 - 1R.  An ordinance authorizing the deposit of funds by the City to defease certain bonds related to the Drumm Farm Redevelopment Project; dissolving the related Special Allocation Fund account; terminating the redevelopment area; and prescribing matters related thereto; and declaring an emergency.


Pass the Ordinance
Executive Summary:

The City authorized The Drumm Farm Redevelopment project in 1999. The project was for the purpose of making improvements of a 320-acre tract of land, which was subdivided to provide for the development of 143 residential lots, a public golf course and certain public improvements. The public improvements portion of the project was completed and the golf course opened in 2002. 


The City issued several bonds associated with the improvements that were refunded  in 2016 with Series 2016C. The current balance of Series 2016C is $415,000. The cash balance in the Drumm Farm account at the end of March 2021 was $2,044,516. 


This ordinance directs staff to take the steps to pay off (defease) the outstanding debt for series 2016C and to terminate the Drumm Farm Tax Increment Financing District. After payment of the bond, remaining funds will be distributed to the various taxing entities based on their share of the incremental taxes collected.  

Emergency Justification:

The City's share of the tax increment from the Drumm Farm TIF are to be deposited into the City's recently established Supplemental Appropriate Fund. Those funds are included as sources for the Crackerneck Creek debt transaction that is planned to be completed the first week of June. Passing the Ordinance in one meeting allows for the timing needed to complete the defeasement prior to that transaction.

Fiscal Impact:

The defeasement of the Series 2016C saves the TIF district approximately $12,500 in interest and allows for early release of tax funds to taxing entities of approximately $1.8 million. 

Department:          Finance and AdministrationContact Person:          Bryan Kidney

Finance DepartmentApproved
Finance DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:         

Drumm Farm Defease OrdinanceOrdinance