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The Laurel City Council unanimously approved legislation at Monday's City Council meeting authorizing the mayor to issue nearly $16 million in bonds to help finance the Laurel Commons redevelopment.

The tax increment financing, which will occur at a later date is based on the expectation that the city's expenditures will be offset by increased property values. The Laurel mall TIF would help pay for public improvements like a parking structure on the southeastern portion of the property and a bus hub.

Until the economy recovers, mall owners Somera Capital Management are finding temporary owners to occupy the small.

David Ayer, senior general manager of Laurel Commons, said the mall recently signed temporary contracts for five new tenants, including the skate park Good Vibes Central, massage parlor Healing Touch, STM Digital Photos and two restaurants in the food court. He added that eight more are slated to be coming.

Thomas P Falatko, Somera senior vice president said the new tenants reflect a change in their philosophy.

"Prior to that we were not as interested [in new tenants]" he said.

In a presentation to the council to provide updated information Monday, mall owners Somera Capital Management representatives said that while the construction lending market is frozen, owners continue to have discussions with lenders.

"The underlying drivers are still here and there is still interest in the project," Falatko said.

He added no changes will be made to the mall's plan, including demolishing the current parking garage along Route One, and replacing the J.C. Penney's with a parking garage and Regal 16 Movie Theatre. that was approved in an October 2008 Planning Board meeting.

In November 2008, Mayor Craig Moe announced his support for the TIF to help raise the required $11.4 million for public improvements at the mall. Last December, the council approved the districting for a TIF of the Laurel Mall property.

Robert L. Doory, Jr, a lawyer with Miles & Stockbridge P.C. and a bond counselor for the city, said the bonds are not a general obligation to the city and not backed by the credit of the city.

Bonds would be sold to investors to generate the necessary funds, so as not to create any new taxes or raise current taxes.