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HomeMy WebLinkAboutCRC-2013-7 Merchant Square Bond Redemption RESOLUTION NO. 2013-7 RESOLUTION OF THE CITY OF CARMEL REDEVELOPMENT COMMISSION AUTHORIZING REDEMPTION OF OUTSTANDING BONDS WHEREAS,the City of Carmel Redevelopment Commission(the"Commission"),governing body of the City of Cannel, Indiana Redevelopment District, previously created the Merchants Square Economic Development Area located in the City of Cannel, Indiana (the "City") and designated the entire Merchants Square Economic Development Area as an allocation area (the "Merchants Square Allocation Area") for the purpose of the allocation and distribution of certain property taxes (commonly referred to as "tax increment") under Indiana Code 36-7-14-39; and WHEREAS, the Commission issued its Carmel Redevelopment District Tax Increment Revenue Bonds of 1998 in the aggregate principal amount of Two Million Six Hundred Fifty-Five Thousand Dollars($2,655,000)(the"1998 Bonds"),pursuant to Resolution No. 6-1998,adopted by the Commission on February 2, 1998 (the"1998 Resolution"),for the purpose of procuring funds to pay for certain economic and redevelopment projects and property acquisition in the Merchants Square Economic Development Area; and WHEREAS, principal of and interest on the 1998 Bonds are payable, in part, from tax increment revenues collected in the Merchants Square Allocation Area; and WHEREAS, the 1998 Bonds are currently outstanding in the principal amount of One Million Two Hundred Ninety Thousand Dollars ($1,290,000); and WHEREAS, Section 3(C)of the 1998 Resolution provides that the 1998 Bonds maturing on or after February 1, 2009, are subject to redemption by the Commission, on any date on or after October 1, 2009, at face value plus accrued interest to the date fixed for redemption, without premium; and WHEREAS,the Commission has sufficient funds on hand in the various funds and accounts for the 1998 Bonds, which are held by U.S. Bank National Association, as trustee (the "1998 Trustee"), together with funds in the general allocation fund for the Merchants Square Allocation Area, to redeem in full the remaining outstanding 1998 Bonds; and WHEREAS, the Commission now desires to authorize the redemption of all outstanding 1998 Bonds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF CARMEL REDEVELOPMENT COMMISSION, GOVERNING BODY OF THE CITY OF CARMEL DEPARTMENT OF REDEVELOPMENT, as follows: 1. The Commission hereby authorizes the redemption in full of all outstanding 1998 Bonds by the payment of all outstanding principal and interest due thereon. —1— 2. London Witte Group, as financial advisor to the Commission (the "Financial Advisor"), is hereby authorized and directed to determine the amount that will be required to fully redeem, discharge and defease all outstanding 1998 Bonds, and to report that amount to the Clerk- Treasurer of the City. Any officer of the Commission or the City is hereby authorized to direct the 1998 Trustee to apply all funds on hand in the funds and accounts for the 1998 Bonds, to the retirement of the 1998 Bonds, and to the extent such funds are insufficient, any officer of the Commission or the City is authorized and directed to pay the remaining amount required from tax increment revenues currently on deposit in the general allocation fund for the Merchants Square Allocation Area. 3. The officers of the Commission and the City are hereby authorized to take such further actions and execute such further documents as they deem necessary or appropriate to effectuate the redemption in full of all outstanding 1998 Bonds, including without limitation the delivery of required redemption notices to the 1998 Trustee and the owners of the 1998 Bonds. 4. This Resolution shall take effect immediately upon its adoption by the Commission. Adopted the 18th day of December, 2013. CITY OF CARMEL REDEV LOPMENT COMMISSION President "Wee President l Secretary 41 - Memeer/ Member 1NDSOI AWILLIAM1S 1433159v2 —2— Summary Resolution 2013-7 This resolution authorizes the redemption of all outstanding 1998 Merchants Square Bonds and details the process necessary to have them defeased. yk