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Glen Carbon Board approves Second Amendment to Orchard Town Center Agreement

by Kathy Turner

GLEN CARBON — The Glen Carbon Board on Tuesday, Nov. 28 approved a second amendment to the Orchard Town Center (OTC) Agreement. The amendment came as the result of a request from TSG for an increase in the amount to be reimbursed for the plan from $3 million to $4.5 million.

According to Tim Lowe, senior VP with The Staenberg Group the developers of OTC, the original plan of $3 million has increased, partly because of demands from IDOT and the City of Edwardsville to this point in the project.

“Both Edwardsville and IDOT took it upon themselves to have us fix anything that was wrong,” said Lowe. He cited changes on both Governor’s Parkway and Route 159 that were not anticipated but required by the two entities as the project progressed. One such change actually involved the Mattress Firm parking lot where the OTC developer was required to change problems from the original development.

Other cost increases came from inflationary increases after the pandemic. TSG will hold a private placement bond.

The amendment approved means that the proposed increase in reimbursement is acceptable and will only be paid from the proceeds of the business district tax; that the reimbursements will be made for site development and roadway improvements; that all costs will be reviewed and verified by the Village; the mechanism to finance the additional request will be a private placement bond with payments solely out of the business district revenues; and, the Village will not be responsible for any shortfall of business district revenues.

The Village will also be able to pay down the bond faster if the revenues are available. The changes actually provide for a reduction in interest of $2 million and a five year earlier pay-down.

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