Mike Robbe, left, and Wesley Walls, representatives of Collett Capital of North Carolina, with Meridian Mayor Percy Bland, discuss plans for the Phase II of Bonita Lakes Crossing Tuesday afternoon at the site near the Krystal restaurant.

The Meridian City Council is looking over a plan to develop Phase 2 of the Meridian Crossroads Project before taking official action on the deal.

The council heard from developers from Collett Capital Tuesday night about the project, which involves a 12.95-acre site directly across from Krystal near Bonita Lakes.

The North Carolina-based firm has replaced Atlanta’s RCG Ventures as the developer for the site. The $22 million expansion was scheduled to begin at the end of 2015.  

During Tuesday’s public hearing, Collett partners Wesley Walls and Mike Robbe fielded a series of questions from the council regarding the development. They said there are a number of obstacles that need to be worked out before starting the project. Among questions that need settling are financing and that the property is on 16th Section land. 

Walls and Robbe presented a slide show showcasing the company, which has been in business for 30 years, and then answered questions from council members. They did not reveal what stores will be opened in the shopping center due to confidentiality agreements with the businesses.  

“We are in discussion with our anchor tenants and we are not at liberty to make them public at this time. We have 550,000 square feet of retail space,” Walls said. “The biggest issue right now is financing.”

Ward 1 Councilman Dr. George Thomas, asked them not to release names of tenants prematurely.

“I hope you won’t announce tenants unless they are confirmed,” Thomas said.

Thomas then asked about financing.

“The No. 1 issue is we need infrastructure help,” Walls said. “Without that, this project doesn’t get off the ground.”

Infrastructure for the project is expected to be paid for via Tax Increment Financing (TIF) bonds. City Council President Kim Houston said council members were satisfied with what they learned from the developers and should be ready to take action on the bond at a meeting next month, once the body studies the information. 

“We will probably be in a better position to take action at an April meeting. We got the chance to hear from the community and get all of our questions answered,” Houston said.

MeridianPlanning Department Supervisor Randall Gaither said the TIF agreement is simply the city’s response and obligations as well as the developer’s responsibilities and obligations.

“The developer agrees to develop the property in accordance with the plan. The developer builds all the stuff he says he is going to build,” Gaither said. “In return, the city will provide upfront money for the development in the form of securities.”

The council approved a TIF plan for the expansion for the project in the summer of 2015. The bond for $2.8 million is to be paid back through projected increases in sales tax over a 15-year period once the expansion is complete and new stores are operational. According to earlier reports, sales tax growth will finance the project with no cost to taxpayers.

The developers said the project is scheduled to begin construction by the end of 2017 and be completed by the end of 2017 and be completed by the summer of 2018.

Walls said the project will generate almost $450,000 in sales taxes, $150,000 in taxes to schools and more than $200,000 in ad valorem taxes.