A plan to borrow $15 million for infrastructure and development projects in Franklin has been approved.
The city redevelopment commission approved borrowing the money, which will be paid back with property taxes collected in the city’s tax-increment financing, or TIF, districts.
The loan allows the city to keep the TIF districts in place longer, after state law set an expiration date for those taxing districts if they have no debt, and the money can go to larger projects the city has been considering.
Franklin will be able to extend the life of three TIF districts, which generate about $1.4 million per year, or about half of all the city’s TIF income. That will allow those TIF districts to continue at least five more years, generating about $7.3 million more that could be used to pay back debt and fund other projects.
If the districts had been ended, schools, libraries and other government units would be able to start collecting taxes on the property.
Projects could include redeveloping King Street near Interstate 65, stormwater projects that would help reduce the flooding risk in Franklin, redevelopment of other areas around I-65 or other downtown projects that could spur business opportunities, officials have said.
The redevelopment commission unanimously approved borrowing the money, but the loan will still need to be finalized in the coming weeks. The city had to meet a deadline of July 1.