THE CITY OF Jackson will reimburse developers for nearly $2.5 million in infrastructure costs for two new developments on the Northside.

At a recent meeting, the Jackson City Council voted unanimously to issue $1.6 million in tax-increment financing (TIF) bonds for the Fondren Place project and voted 5-1 to issue $900,000 in TIF bonds for infrastructure related to the new River Hills clubhouse.

Ward Three Councilman Kenneth Stokes was the lone board member voting against the River Hills bond, while Ward Seven Councilwoman Margaret Barrett-Simon was absent from the meeting.

The TIFs essentially will repay builders for the costs they incurred installing and repairing infrastructure, an expense that’s usually taken on by a municipality. The city will pay back the bonds over a period of time with a portion of the sales and property tax generated by the developments.

Mike Peters, a developer of Fondren Place, is pleased with the council’s decision. He said the city has already approved issuing another $900,000 for the second phase of the project, which will likely begin sometime this summer.

HE BELIEVES that it will likely take that amount to cover infrastructure costs for that phase, which includes the construction of a boutique hotel at the corner of Duling Street and Old Canton Road. “We’ll wait and see, but we’ll probably use all of it,” he said.

Work on the $25 million project began in 2007, two years after the passage of House Bill 1302, the School Property Development Act, which created a way for local school districts to dispose of unused property in an effort to maximize possible monetary returns to the district.

Fondren Place is the first development in the state to take advantage of the act, and is owned 80 percent by Peters and the Mattiace Company and 20 percent owned by Jackson Public Schools.

The first phase of the project wrapped up in late 2008 and included the construction of a 45,000-square-foot building known as Fondren Tower and the remodeling of Duling School, a former school and historic landmark named after Lorena Duling, who taught in the district for 53 years.

So far, a number of professional businesses, retail shops and restaurants have flocked to the development, located on Duling Street between North State and Old Canton.

Peters said the businesses include the Ramey Agency, Cooke Douglass Farr Lemons, Ltd. Architects and Engineers PA, a Bankplus branch office, John Grafe Antiques, Bohemian Kitchens, and J.C. Graphics and T-Shirts.

SEVERAL OTHER businesses will be moving into the 20,000-square-foot Duling School in the coming weeks, including a Suzanne Moak Hair Salon, Ann Geddie Day Spa, and the Auditorium, a new restaurant featuring food and live entertainment. It’s also been rumored that an Urban Outfitters will be locating in the development.

Peters, though, said there was no news about that at the time of publication. He’s not surprised that the development has become so popular.

“The whole neighborhood has contributed to its success,” he said. “People want to be here. There’s a lot of energy and excitement.”

Nathan Glenn, owner of the Auditorium, is one of those feeling the energy. His new restaurant will be aptly located in the historic school’s former auditorium. Crews, in recent months, have been steadily working to get the facility ready for hungry patrons.

He hoped to open the restaurant by February 1. “We decided, that because it is a historic landmark, we would do as little as possible,” he said. “The crown molding is great. We couldn’t replace it even if we wanted to.”

Crews did, however, make it a little easier for customers to dine on the sloped auditorium floor. “We added a kitchen, tiered the slanted floor and built a full restaurant and bar,” he said. Each table has been placed strategically so visitors can watch the stage while they’re enjoying a meal.

While no entertainment is scheduled for opening night, Glenn said the first act has already been booked - blues legend Eddie Cotton - who is slated to take the stage in late February or early March.

AND ON RIDGEWOOD Road, TIF bonds were used for infrastructure improvements on the new River Hills clubhouse. Mike Malouf, a former chair of the club’s building committee, said he’s also pleased with the city’s decision. A TIF is a basic incentive for a developer to invest in a certain area.

And ever since River Hills invested $11 million into its 23,900-square-foot facility, the community has returned the favor. Malouf said the club has been rewarded with a nice increase in the number of wedding receptions and banquets it hosts, generating new tax dollars for the capital city.

The TIF bonds were used, in part, to make improvements to Ridgewood, the road entering the club and to install infrastructure like plumbing.

While the TIF bonds were important, they weren’t as important as the dream that the new facility fulfilled.

Shortly before Hurricane Katrina hit, members there voted 93 percent to increase dues for a new clubhouse. Plans had been set in place to build a 30,000-square-foot, two-story facility. But after the storm hit, plans were scaled back to meet rising construction costs, officials said.

Despite the cost-cutting measures, members who have been frequenting the new clubhouse for the past year know it’s anything but pedestrian. It features four dining halls, a large living room with hardwood pine floors, and a fireplace overlooking a New Orleans-style courtyard. And the eastern side of the facility features a covered porch overlooking the tennis courts.