In 2018, ESI was retained by Tobyhanna Township, The Tobyhanna Township Economic Development Authority and the Monroe County Industrial Development Authority to evaluate the borrowing potential through Tax Increment Financing (TIF) and Pennsylvania’s 1st Public Improvement Levy (PIL) as public finance mechanisms for Pocono Springs Entertainment Village, a 3 Phase 1.4 Million Sq. Ft. experiential destination entertainment and retail complex in Monroe County, Pennsylvania.
ESI reviewed and plans and projections provided by the developers in order to validate their reasonableness and assess project feasibility.
Next, ESI evaluated the annual funding streams that could be raised through two mechanisms.
The first is Tax Increment Financing, which would utilize the additional real estate tax revenues generated by the increase in assessed value associated with the project.
The second is a Public Improvement Levy, which would generate revenues through a levy of 1% of sales within the complex. This unique mechanism was designed by the Tobyhanna Township Economic Development Authority to provide both initial funding for public infrastructure as well as a continual non taxpayer fiscal support for operation and maintenance of this infrastructure by levying the users of such infrastructure.
Working in partnership with Tobyhanna Township, Authority officials and project developers, ESI then developed a financing model to translate these annual revenue streams into commensurate bonds proceeds they would support to help finance project development.