Members of the Montgomery County Council gave their continued support of the Tempur Sealy project.
On Tuesday, the council passed the Tempur Sealy Financing Ordinance by a 5-0 vote. Absent from the meeting were Don Mills and Mark Davidson.
County attorney Dan Taylor explained the ordinance pledges a local income tax as a backup for the Economic Development Commission’s bond, or what is commonly referred to as the Tempur bond. The Montgomery County Economic Development Commission met prior to the county council meeting and approved the bond.
“We don’t ever anticipate having to use a local income tax, but it (the bond) is backed up with that, so because these bonds are backed up with that you are the only entity that can approve that,” Taylor told the council. “The RDC has to approve the use of TIF funds, and you have to approve the back up of local income tax. The plan commission, the county commissioners, the Economic Development Commission and the RDC have approved all the steps, so this is your first and last step in this process.”
Taylor explained that proceeds from the bonds will be paid to Tempur in order to assist them with preliminary acquisition costs and help generate funds for them.
“The (bond) obligation will be paid from Tempur’s own tax payments into their TIF, and so their tax payments will essentially pay back these bonds,” Taylor said. “There’s a taxpayer agreement in which we require Tempur to cover any shortfalls in the tax payment, we don’t anticipate any, but if there is, Tempur has to make up that difference between the real estate taxes paid and the obligation to repay these bonds.”
Tempur did not request a tax abatement from the county, instead opting for TIF.
“Essentially they can borrow money from the future taxes they are going to pay, so as part of that we believe their TIF payments are more than sufficient to pay the bond,” Taylor added.
“We are saying, ‘OK Montgomery County taxpayer the buck stops here with you’ and we, the council, are saying that’s OK, but the odds of that getting there are way out there, and this is a good deal for Montgomery County. I’m excited about it. I don’t want to be pessimistic. I just want people to understand I don’t think we are unduly risking their tax dollar at all.”
Taylor emphasized that one taxpayer has been designated to pay these bonds, and it’s Tempur.
Tempur’s investment in the county is currently estimated at $183 million. Ground was broken in October on the foam pouring manufacturing facility that is expected to employ at least 350 workers by 2025.
Local officials anticipate the Tempur bond will be issued in early December.
