The Grandview Heights City Council unanimously approved a three-party agreement last night on financing for the Grandview Yard development.

City leaders have dissected drafts of the document for more than two months, trying to ensure that Grandview residents assume little risk yet are beneficiaries of a future tax windfall.

Under the agreement, the Franklin County Finance Authority will issue up to $119 million in bonds for the city's public improvements in Grandview's industrial core on the eastern edge of town.

Interest on the debt will be determined as the bonds are issued. The county initially will issue about $11 million in bonds.

The city will have until 2059 to repay principal and interest on the bonds using expected income-tax and tax-increment-financing revenue.

Nationwide Realty Investors, the real-estate branch of Nationwide Insurance, has agreed to purchase the initial bonds from the finance authority. In return, it will receive tax-free interest payments.

Nationwide assumes the risk of not being paid back should the project not attract businesses or produce jobs.

"The city in and of itself won't ever be in default, even if the bonds are," said Grandview Councilwoman P'Elizabeth Koelker, who chairs the economic-development committee. "The city can't afford to be; we're tiny."

Grandview Yard is intended to be a mix of retail, office, commercial and residential buildings.

City leaders were wise to fully grasp the complex arrangement, said Jean Carter Ryan, director of the Franklin County Finance Authority.

"It's a piece of ground that makes up a large portion of the city," she said. "I think that they have wanted to make sure that they are being very prudent and cautious."

"Obviously, we don't want it to go bad," said Patrik Bowman, development director for the city. "We want to make sure Nationwide brings enough real estate online to raise money for TIFs and get the project done."

dnarciso@dispatch.com