The city of Ripon created an escrow account through money borrowed from tax incremental finance district (TID) No. 11. And now the money, which was given in loans and grants to fund the Boca Grande Capital work downtown, has – almost – vanished.

In more than 10 months, the escrow account has been created and a developer’s agreement has been signed. And also in more than 10 months, Boca has managed to spend to spend $6.87 million – or 79.6 percent – of the money that is available, which is $8.62 million. The more than 20 percent remaining – $1.75 million – will remain untouched, unless Boca presents significant work on the proposed Ripon Inn and Spa.

The restriction was stipulated in an October 29, 2009 escrow agreement signed both by City Administrator Steve Barg and Boca Chairman Jim Connelly. With this, it means that 99.9 percent has already been withdrawn by Boca from the dollars it can withdraw from this point. They are now only left with $1,210.24 that they can withdraw.

Without any plans completed, Boca has already spent $3.75 million. And the staff is getting concerned. Barg, however, assures that the city is still in contact with the developer regarding financing for the remainder of the work.

And it is important that the Ripon Inn and Spa is completed. When a TID is created, property values are locked so that when property value increases, the additional paid taxes are used to pay back loans used to fund work in TID. So – even though other means will be used to repay TID No. 11 in 20-plus years, as stipulated by the state – Boca’s own property taxes will still primarily pay for the renovations and construction fund from TID.

Connelly says residents should not worry: the fact that more money has been withdrawn means Boca is doing all it can to make sure projects will be done. As he shares, “Our goal is to do outstanding projects … that will be loved first and foremost by the residents of Ripon, but also that will appeal to others outside Ripon.”