HomeMy WebLinkAboutD-2203-15 Ratifying Pledge of COIT from TIF/HC Dedvt. Comm. ($21,000,000 SPONSOR: Councilor Snyder
ORDINANCE NO. D-2203-15
AN ORDINANCE OF THE COMMON COUNCIL OF THE
CITY OF CARMEL, INDIANA, RATIFYING PLEDGE OF
COUNTY OPTION INCOME TAXES AND AUTHORIZING
THE ISSUANCE OF REFUNDING BONDS BY THE
HAMILTON COUNTY REDEVELOPMENT COMMISSION
PURSUANT TO IC 36-7-14-3.5
WHEREAS, the Hamilton County Redevelopment Commission ("Commission") has
adopted a bond resolution ("Bond Resolution") authorizing the issuance of its Redevelopment
District Tax Increment Refunding Revenue Bonds of 2015 ("Bonds") in an aggregate principal
amount not to exceed Twenty-one Million Dollars ($21,000,000) payable from Tax Increment
(as defined in the Bond Resolution) and, to the extent Tax Increment is not sufficiezi' , from the
hereinafter defined Pledged COIT, on a parity with the Outstanding COIT, Obligations (as
defined in the Bond Resolution), for the purpose of paying the costs of refunding the Hamilton
County Redevelopment District Tax Increment Refunding Revenue Bonds of 2005 and the
Hamilton County Redevelopment District Tax Increment Revenue Bonds of 2006 (collectively,
"Refunded Bonds");
WHEREAS, IC 36-7-14-3.5 requires City of Carmel ("City") Common Council approval
for the issuance of bonds by the Hamilton County Redevelopment Commission payable from
Tax Increment;
WHEREAS, the Hamilton County Income Tax Council has imposed the county option
income tax under IC 6-3.5-6 ("COIT") at a rate of one percent (1.0%) annually on the adjusted
gross income of the Hamilton County("County")taxpayers;
WHEREAS, pursuant to IC 6-3.5-6, the City is a recipient of a distributive share of the
COIT ("COIT Revenues") and receives its COIT Revenues monthly from the County Auditor;
WHEREAS, the Common Council has, by ordinance, previously approved a pledge to
the Refunded Bonds of up to Six Hundred Fifty Thousand Dollars $650 000 per year of the
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City's COIT Revenues ("Pledged COIT"); and
WHEREAS, the Common Council also entered into an Interlocal Agreement between the
County and the City approved by this Common Council on June 21, 2010 ("Interlocal
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Agreement") which, among other things, extended the pledge of Pledged COIT to any bonds
issued to refund the Refunded Bonds until such bonds are paid in full;
I\4637585.1
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF CARMEL, INDIANA, THAT:
Section 1. The Common Council hereby approves the issuance of the Bonds by the
Commission payable from Tax Increment for the purpose of refunding the Refunded Bonds.
Section 2. The City hereby ratifies and approves the continuation of the pledge of
Pledged COIT, on a parity with the Outstanding COIT Obligations, to the County to pay debt
service on the Bonds,pursuant to the Interlocal Agreement and IC 6-3.5-6. The Pledged COIT is
hereby irrevocably pledged to the Bonds.
Section 3. This ordinance shall be in full force and effect from and after its passage
and execution by the Mayor.
Passed by the Common Council of the City of Carmel, Indiana this 1(9 day of
.au....- , 2015,by a vote of 7 ayes and 6 nays.
COMMON UNCIL FOR THE CIT OF CARMEL
Presid' g Officer Kevin D.ejet,Y I I i
Richard L. Sharp, President Pro Tempore Carol Schleif
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• .nald E. Carter W. Eric Seid nsticker
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Su-p am Lu i1snyder
ATTEST:
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Diana L. Cordray, IAMC, Clerk-Treasij er
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Presented by me to the Mayor of the City of Carmel, Indiana this I day of %)-
, 2015, at 2: CO A Al
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Diana L. Cordray, IAMC, Clerk-Tre�urer
Approved by me, the Mayor of the City of Carmel, Indiana,this day of .E-.8 4. /
, 2015, at 2 2c P.M.
es Brainard, Mayor
ATTEST:
IPAJ/1 61(7Ce"4
Diana L. Cordray, IAMC, Clerk-Treasurer
This instrument prepared by Michael A.Howard,Attorney at Law,694 Logan Street,Noblesville,Indiana 46060,(317)773-4212.
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HOWARD & ASSOCIATES
ATTORNEYS FOR HAMILTON COUNTY
AND
THE CITY OF NOBLESVILLE
MICHAEL A. HOWARD DARREN J. MURPHY
howardma@aol.com dmurphy@orinet
MEMORANDUM
TO: Members of the Carmel City Council
Mayor Brainard
FROM Michael A. Howard
DATE: February 5,2015
SUBJECT:, An Ordinance of the Common Council of the City of Carmel,Indiana,
Ratifying Pledge of County Option Income Taxes and Authorizing the
Issuance of Refunding Bonds by the Hamilton County Redevelopment
Commission Pursuant to IC 36-7-14-3.5 (Thomson Consumer Electronics
Area)
The County has requested the attached Ordinance be placed on your agenda at the Council's
February 16'meeting. Counselor Snyder has agreed to sponsor the Ordinance. The purpose of
this Ordinance is to authorize the refunding of the Hamilton County Redevelopment District's
2005 Tax Increment Bonds and the 2006 Tax Increment Bonds,both of which are being paid
from the tax increment of the Thomson Consumer Electronics TIF district("the Area"). Because
interest rates may climb from the existing rates,we would ask to expedite the consideration of
the Ordinance.
The Area was formed in 2000. The boundaries of the Area are generally 106th Street on the
north, Interstate 465 on the south,U.S. 31 on the east,and Springmill Road on the west At the
time the Area was created,the Area was not within the City. After the creation of the Area,and
prior to 2005,the Area was annexed.
In 2005, Carmel Common Council passed Ordinance D-1771-05,and entered into an Interlocal
Agreement to approve the issuance of the 2005 Bonds and the 2006 Bonds to be paid from the
TIF from the Area. Copies of the Ordinance and Interlocal Agreement are attached.
-694 LOGAN STREET,NOBLESVILLE,INDIANA 46060 • (317)773-4212-(FAX) (317) 776-2369.
KT,
During the early years,the Area was very successful and there was ample TIF to pay payments
on the original bonds. The construction of the Heart Center,which was approved by the City
after annexation of the Area,was a major factor in creating a substantial amount of excess TIF
from the Area, The 2005 Bonds approved by the Interlocal Agreement,were partially used to
refund the.original bonds issued by the County Redevelopment Comrnssion. .Part-of the
proceeds of the 2005 Bonds and all of 2006 Bonds issued by the County Redevelopment
Commission were used by the City to construct various City projects,primarily Illinois Street.
See Exhibit A to the Interlocal Agreement.
In order to assist in the sale of the 2005 and 2006 Bonds,the City pledged to the County
Redevelopment Commission the amount of up to $650,000 per year from the City's distributive
share of the County Option Income Tax to cover any shortfall between principle and interest
payments on the 2005 and 2006 Bonds, and the tax increment collected. This pledge was
irrevocable until 2031;until any refunding bonds were paid in full. See Section IV of the
Interlocal Agreement.
Since the issuance of the 2006 Bonds,the assessed value in the Area has been on a gradual
decline,partially due to Thomson Consumer Electronics leaving the area and partially due to
vacancies in the office buildings within the Area. In December of 2014,there was a demand
made to the City to pay$454,993.78 to the County pursuant to COT°pledge. The reasons for the
shortfall are contained in the letter to Mayor Brainard and Clerk-Treasurer Cordray,dated
December 16,2014,which is attached. That amount was promptly paid by the City.While the
issues which caused the shortfall may not reoccur,it is in all parties' best interest to reduce
annual payments to the extent possible:
In working with City Securities and Umbaugh, we have determined that there could be
substantial savings derived from the refunding of both the 2005 and 2006 Bonds. We believe
that we can refund these bonds without increasing the City's COLT pledge. Immediately behind
this memo,I:include the projected Savings Report generated by City Securities. Note that the
Savings Report is based on a projected interest rate of 325%which results in approximately
$250,000 in.annualsavings. City Securities anticipates a lower rate may be negotiated if rates
remain as low as they are now However,these interest rates could begin to climb in the next
several weeks.
The refunding will not extend the life of the bonds. Therefore,the City is not undertaking any
liability in addition to what presently exists. Finally,the budget for the refunding also includes
payment to Carmel of 100% of the guarantee payment made by City in December of 2014.
Finally,time is important. Based on the historically low interest rates,we would like to move as
quickly as,possible. The Ordinance is on your agenda for the February 16th meeting. We
understand that referral to the Finance Committee under existing schedules would not make this
Ordinance eligible for passage prior to the first meeting in March. All of the steps by the County
entities are presently scheduled before February 15th. If the Ordinance can be passed by the City
on or before your first meeting m March,we could lock interest rates immediately after passage
and close by mid-March, hopefully before rates begin to;rise. However,there should be
substantial savings even if final approval is in early March. We would,therefore,request your
consideration of this Ordinance as promptly as the City Council feels.appropriate.
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Jan 20,2015 10:41.* Prepared by City Securities Page 2
SAVINGS
Hamilton County,(Indiana):Redevelopment District
Refunding of 2005 and 2006 Thomson ElectricTIF Bonds
5650,000 Cannel COLT Pledge •
Uniform Savings
Present Value
Prior Refunding Annual to 03/03/2015 •
Date Debt.Service Debt Service Savings Savings .® 3.25.02572%
08/01/2015 903,327.50 772,869A4 130,458.06 128.740 28
02/01/2016 904,182.50 775256:25 128,926.25 259 384.31 125 194.08
,08/0112016. 904,632.50 777,618.75 127,013 35 121;364.61
02/01/2017 904,857:50 774,818:75 130,033:75 257,052:50 122,268.05
08101/2017 899,837150 77 1,937.50 127,900:00 113;334.03
02101/2018 909,705.00 778;975110 130,730.00 258,630.00 119,018.17
08/01/201.8 904,072.50 775,768 75 128,303.75 114,941.33
02/01/2019 :903327,50 777,48125 125;846.25 254,150;00 110;936.91
08/01/2019 907,112:50 779031.25 128;031.25 111,101.58
02101!2020 900,555.00. 770,4105 130,13625 258,2.17.50 111.,078:97
08/01/2020 903;62750 776,806.25 126,821.25 .. 106.51836
02/0.1;202.1 ;906,350.00 777 950.00 128,400;00 255,22125 106;1 1.9:79
08/0-112021 903,556.25 773,931.25 129,625.00 105,419.03.
02/01/2022 905 523.00 774;831.25 130;693.75 260;318.75 104 588.50
08/01/2022 901;562.5(! 775 568.75 125,9.93.75 99214.93
02/01/2023 907,350.00 781,143.75 126,206.25 252,200.00 97,793.00:
08/01/2023 907;610.00 781;475.0 .0 126,135.00 96:174.83.
02/01/2024, 902,500: 00 . 776,643.75 125,85625 251,99125 `94;427.72
08/0.112024 902,000.00 771,731.25 130,268.75 96.175 36
02/01/2025 9.06,125.00 776,737.50 129,387.50 259,656.25 93,997.17
98/01/2025 909 750.00 781;500:00 128250.00. 91,680.87 _
02/01/2026 902;375110 776;013.75 .126,85625. 255;10625 8923436.
08/01/2026 :900,750.09 770 456.25 .130 293.75 90,186,75
02/0112027 907,980.00. 779,81250 123,167.50 258;46125 '87;296.32
08/01/2027 904;575:00 773,843.75 130,73125. 87,618.61
0210112028 905,790.00 777;793.75 12799625; 258,727:50 84;413:73
08/01i2028 .901,497.50 771,500.00 129;997:50 S4,36255
02101/2029. 906;82250 780,125.00 126,697:50 256695;00 80,906.17
08i01/2029 901,512.50 773,475.00 128;08750 80;485:80
02/01/2030 905,822.50 776;643:75 .129,173.75 257;26625 79 373A6.
03/01/2030 904 497.50 77013.75 129,87835 79,022:07
02/01/2031 907,567.50 777,431.25 130;136.25 260015.00 77912:56,
28;94725625 24;834,163:19 4;113,093.06 4,113;093:06 3,196;399;95
Savings SunimarX
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PV of savings from cash'fow 3,196399.95
Less:-Prior`funds on hand -2;223,512.45
Plus:.Refunding_funds on hand 1241,972.29
Net PV Savings 2,213,959.79
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In act-400o::With IC 36-'WO-4,I hereby certify lam the ClerloTt=um for theatf of Camitl,Indiana,and the following document4s);consisting of 3
age(s) is a tue and accurate cow of Ordinance D4771-05. Witness my hand antl official seallthis 274i clay of Octo 4105. 71 -14
Di= corkay,C412112i Clerk-Treasurer, C
SPON$ORg CoOncilor KiFity
OPDIVANCE D-177145
AN ORDINANCE OF THE COMMON COUNCIL PLEDGING COlT REVENUES TO
BONDS OF THE HAMILTON COUNTY RETZtaLOPIYMNT DISTRICT
• • WUREAB, tue Hamilton County C'County") Income Tax Council has imposed the
County Option Income Tax under IC ("COIT") at a rate of one percent(1.0%)annually
on the.adjusted gross income Of City taxpayers;
WHERE.AS, pursuant to the Act, the City of Caonel ("City") is a recipient of a
distribulive share Of the COIT ('COIT Revenues') and receives its COIT Revenues monthly
from the County Auditor;
• WHEREAS, the County RedevelOpinent Commission ("Commission")
established the Thomson Consumer Electronics,Inc., Clay Township, Economic Development
Area("Area')in the City in accordance with IC 30-7-14;
WHEREAS, the Commission has determined to issue bonds to finance the acquisition
-and construction of road 'improvements in, serving or benefttling the Area(Tr.:Jeer) and such
Bonds will be payable from incremental tax revenues collected in the Area ("Tax increment")
and if necessary,froill a portion of.*(ZIT Revenues;
VirflE1Wsvq, the City has agreed to pledge COlT Revenues in the annual amount of
$650,000 (".Pledged.COIT") to the payment of the New Bonds (as defined below) issued to
Enance the Project located in the City;
•NOW, THEREFORE, BE IT ORDAINED by.the Common Council of the City of
Carmel,Indiana:
Section 1 The City, in consideration of the Commission's desire to proceed with the
Completion of the Project and with the redeVelonment and economic development of the
Area,hereby pledges Pledged COIT to the Commission for the payment of debt ser-vioe
on its Redevelopment District Tax Increment Revenue Bonds, issued in two or more -
.series, in the aggregate principal amount.not to exceed Twenty Five Million Four
Hundred Thousand Dollars ($25,400,000)("New Bonds") on a parity with the pledge of
Pledged COIT by the City to the Outstanding COIT Obligations of the City,which are aS
follows: • •
A. Outstanding Twenty-six Million One Hundred Eighty-five Thousand
Dollars($26,185,000)of Cainiel RedeveloPnaent Authority County Option
Income Tax Lease Rental Revenue Refunding Bonds of 2004 under a Lease
dated July 8,1997,as amended.on September 4, 1997,and as further pmended -
on March 1,2004,which bonds were originally issued in the a.mOunt of
Twenty-seven Million Nine Hundred Eighty-five Thousand Dollars
($27;985,000)
B. Outstanding Eight Million Four Hundred Thirty Thousand Dollus
($8,430,000)of City of Cannel Redevelopment Dishict Taxable con
Revenue Bonds of 199 winch bonds were originally issued in the amountof
TenMillion Five Hundred Thousand Dollars($10,500,000).
C. Outstanding Nine Million Eight Hundred Fifty-five Thousand Dollars
($9,855,000)of City of Carmel,Indiana,WIT Revenue Bonds,Series 2002
which bonds were originally issued in the amount of Ten Million Four
f.:Iimdred.Fifty Thousand Dollars($10,450,000).
$Milea H. The City further covenants that it mill take no action(including action as
a member of the Hamilton County income Tax Council)to rescind or repeal COlT
or to take any action that would result in the City receiving a smaller distributive share
of COlT than the distributive share of COlT ti thiCh it was entitled on the effective
date of this ordinance. The City further covenants that it will take no action(includkg
action as a m.ember of the Hamilton County Income Tax Council)to rescind COIT or
reduce the COlT rate as long as tb.e Bonds am outstanding.
Section Ill, Except for the Outstanding Obligations listed in Section 1 above,the City
has not pledged or otherwise encumbered its COlT Revenues,and there are no prior
liens,encumbrances,or other restrictions on.the Pledged COIT or on the City's ability
to pledge Pledged COIT to the Commission.
ection.PI. This Ordinance shall be in full force and effect immediately upon its •
passage.
Section V All prior Ordinances or parts thereof inconsistent with any provisions of this
Ordinance are hereby repealed.
Section VI: This Ordinance shall be in fill force and effect from and after its passage
and signing by the Mayor.
n Passed by the COITIM01:1 Council of the City of Camel,Indiana this J.s day of
. • 2005,by a vote of 7 ayes and e), nays.
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/ COMMON COLTNCIL FORTE CITY OF CARMEL
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Posented by!Ile to the Mayor of the City of Carmel,Indiwa This 15 day Of ' I,/; ,.,. .,;.,'• 2005,
a ict p.M. a -
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Diana L...Cordray,[AMC,Clerk-Tr-:61 -r
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APProled bY Ine,Mayor Of the City of Carmel, Indiana,this f-TQ.; 'day of A_1„.......u-.`.. 2005,
a 1.no e lin.
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3 es B1-6.taki,Mayor
ATTEST: •
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Diana,L.Cordray,LAMC,Clerk-Treas?;or
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Frevarcr.1 by: Michael A.Howard .
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[ 694 limn Street
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1 In acvxdance with tC 36-4404 I hereby cerdfy tarn the Clerk-Treastrcr Its-the City of Cannel,Indiana,and that the following,docurnent(s)consisting°fa
page(s),is a Vac and accurate copy ofOrditraice D-1771-05.Witness ray hand:Ind official seal this 27th day of 0 ..-
I
That L Coniray,Cannel Cierk-Treastn=,LTIIIC /
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AN INTERLOCAL AdREEfttiENT It..ETWEE !THE Crilf Ci) CM EL
mo HAMILTON COUNTY CONCERNING
THE ISSUANCE OF BONDS AND PAYMENT OF EXPENSES
FROM THE THOMSON CONSUMER ELECTRONICS,INC.,
CLAY TOWNSHIP ECONOMIC DEVELtPlIfiENT AREA
Document Cross Reference No.9133525
This Interlocal Agreement entered into as of August 15,.200 ,by and between the Board
of Commissioners of Hamilton County,actirig on behalf of Hamilton County, Indiana, ("the
Count?),the HaMilton COunty Council ("the Council")and the City of Carmel (the OW).
WHEREAS,the Hamilton County Redevelopment Com mission("Commission')on the 1 ri
day of April,1990,passed a Declaratory ResOlutionNo.4-17-90,which established the Thorn Son
Consumer Electronics, Inc.,Clay Township,EdenornioDeVeloprrient Area("the Area");and
litil,lE; EAS,the Cornmission,acting on behalf of Hamilton County,Indiana,("the Count?'),
subsequently issued its Redevelopment District Tax Increitent Revenue Bonds of 1991 dated
December 1, 1991, ("the 1991 Bonds");and,
liVHEREAS, the 1991 Bonds were subse.quently refunded by the COmmission through
issuance Of ita Redevelopment:DiStiict TaX inorerrient Refund ing-ReVentie Bonda of 2002 dated
Febniary 21, 200Z ("the Reffinding Bonds");and,
WHEREAS,the final principal and interest payment on the Refunding Bonds will be paid on
February 1.2008,from tax increment collected from the Area in November of 2007;and,
WHEREAS,since the time of the issuance of the 1991 Bonds,the City has anneXed all of
the real estate Within the Area; and,
• WHEREAS,Indiana Code 36-7-14-3.5;provides that after thefinai date of en annexation by
a municipality,e County redevelopMe,ntoomtnission may not issue borida Of use the proceeds from
allocated property tax proceeds from an allocation area unless the legislative body of the
municipality adopts an ordinance permitting the issuance of bonds and use of the allocated property
tax proceeds from the allocation area;and,
WHEREAS,the City is desirous of entering into an Agreement with the County acting on
behalf of the Commission to issue the Commission's 2005 Bonds in an amount not to exceed Six
Million Five Hundred Thousand Dollars(t6,500,000),the proceeds of which will be used to refund
the Refunding Bowie and pay the costs of land acquisition for the extension of Illhois Street north
from Clarion Hospital to/26th Street and design costs fOr part of Illinois Street forthe benefit of the
City rthe 2005 Cost?),which Costs meet the requirements of Indiana Code 36-7-14-25.1,end
include the cost of right of way and design of public infrastructure, piliS all reasonable legal;
accounting,advertising,bond discount and other expenses which are normallyassociated with the
issuance of municipal bonds,and to fund a debt service reserve.
litHEREAS,the City is desirous of entering into an Agreement with the County acting on
behalf of the Commission to issue the Commission's 2006 Bonds in an amount not to exceed
Nineteen Million Eight Hundred Thousand Dollars($19,800,000),•the proceeds of whioll will be used
to pay the costs°fiend acquisition for the extension of Illinois Street north itorn 126th Street to 136th
Street;to pay the construction of Illinois Street from Clarion Hospital north to 136th Street and to
construct the 3gi Avenue S.W. and 4thAvenue S.W. realignment project;all for the benefit of the
City("the 2006 Projectsn),which Projects meet the requirements of Indiana Code 36-7-14-25,1,and
include the cost of right of way and design of public infrastructure, Plus all reasonable legal,
accOunting,advertising,bond discount,capitalized interest,and otterexpenses which are normally
associated with the issuance of municipal bonds and to fund a debt service reserve,and,
WHEREAS,the County and the Commission have designated part of the tax increment
collected from the Area in collection years 2005,2006,and 20b7 to be used for public projects
benefitting the Area.
!IT IS THEREBY AGREE I. by and between the County and the City as fol bws:
Simon Ft; The County agrees to initiate all procedures necessary for the
Commission to issue its 2005 Redevelopment District Tax Increment Revenue Bonds rthe
20.05 Bonds')in an amount no greater than Six billion Five Hundred Thousand Dollars
($6,500,000)which shall be paid from semi-annual bond payments not to exceed Two Hundred
Thousand Dollars($200,000)from February 2006 through February 2030. The County agrees to
initiate alt procedures:necessaryfor the Commission to issue its 2006 Redevelopment District Tax
increment Revenue Bonds(“the 2006 Bonds")in Ouht nogreàtër than Ni teen Million Eight
Hundred Thousand Dollars($19,800,000)which shall be paid from semi-annual bondpaydionns not
to exmeed Seven Hundr dTwenty' usandDollars($72O; )fro€iAugust2006through Febniary
2030,and Nine Hundred Fifteen Thousand Dollars($915,000)on August 2030 and February-of
2031:The proceeds of the New Bonds shall be used tofund the project budgetin Exhibiti. All tax
incretnerit collected from the Area after 2005 shall be irrevocably pledged to be used for payments
toward.the New Bonds.
Section ii° The2005 Bonds shall be issued in Octoberof 2005,and the 2006 Bonds shall
be issued hi March of 2006.
Section lii: The proceeds of the 2005.Bonds to be issued by the Commission shell be
held by the County Auditor and used to redeem the Refunding Bonds and to pay the costts of the
Projects as defined by the City, which Projects are listed on Exhibit A. Those costs shall include
all applicable.expenses as set out in Indiana Code 36-7-14.25.1(a).
Section IV: The City has pledged to the Commission in Ordinance No.D-177?.-05 the
amount of Six Hundred Fifty Thousand Dollars($650,000)per year of the City's distributive share
of County Option Income Tax to cover scheduled print ipal and interest
on the New Bonds and the semi-annual tax increment collected from the Area("tae Guarantee
Payments"),pursuant to Ordinance D-1771-05. The pledge shall be irrevocable until February of.
2031 or until the New Bands or any refupding bonds used to redeern the New Bonds,are paid in full_
Any Guarantee Payments shall be made at least two business days pia'to the payment:date of the
New Bonds to the County Auditor or to the Trustee for the NewBond s and applied to tee pawnent
Of the New Bonds.
Section V: The claims for payment of costs to be paid from the proceeds of the New
Bonds shall be approved by both a representative of the City as designated by Mayor and City
council,and an officer of the Hamilton County Redevelopment COmmissibri after.recommendation
by the appropriate construction manager or project engineer designated by the City.
Section VI: The City shall Select such engineers, and deeignprofessionale,as are
necessary to design and inspect the construction of the Projects.The City shall be responsible for
receiving bids and awarding the contracts for the design, inspection, and consfruction of the
ProjedS.
Section VII The parties agree that in•the event thet it is determined that there wilt be
tnancial benefit to the refunding,or the advance refunding,of the New Bonds,the parties shall take
all steps necessary to realize the savings by refunding the New Bonds. However,any such
refunding of the New Bonds shall not pause the debt Service payments to be increased above,or
I extended beyond,the terms of the New Bonds.
Section VIII. In the event there are any disputes arising under thiS Agreement, those
disputes shall initially be discussed it-le-settlement conference to be held among the following:one
(1)member of the City Council;the Mayor;the City Attorney;two(2)members of the Board of
Commissioners;and the County Attorney. if there is no resolution of the dispute at the eettlernent
conference,the dispute shall be submitted to mediabon,pursuant to the Rules of Alrematwe Dispute
Resolution prior to initiating litgation. In the event that the parties cannot agree oil an ac-ceptable
mediator, a mediator shall be appointed by the Judge of the Circuit Court of Hamilton County.
Seddon IX. The parties agree tolake all steps necessary to irnplernent the terms and
conditions of this AgreeMent,including recommendations to the Hamilton County Redevelopment
Commission,to pass such resolutions and ordinanms as are necessary to issue the New Bonds
and tO implement the terms and conditions of this Acireement.
ALL OF WHICH IS AGREED by and between the City of Carmel,the Board of
Commissioners of Hamilton County,and the Hamilton County Council,on the dates setout herein.
Adopted this/... day of August,2005.
COMMON COUNCIL FOR THE WY OF GAREOL,KO'AVA
•A
1 / 1
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P/siding (.0 icer '• ald E.Carter--
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Kevi P- -416,6-'*fl-pt Pro empore
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bred . J.GIVIFF-Are4r 7•; Mark Raft, y ann - /
set., C. 4,riftiths - / Richa d L. Sharp 1
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ATTES :
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_ve. , ,i,k4u%eerzeA6
Diana L Cord ray, !AMC,.Clerk-Tr#
urer
- ,
BOARD OF COMMISSIONERS OF
HAUL N., OUNTY
Date: 8-L -OS
Cffristine Al man
Steven C.Dillinger
10*
Steven A. Holt
ATTEST:
Robin M. Mills,Auditor
•
This Inter local Agreement ratified and approved by the Hamilton County Council this
In day of 4)0 OW
HAMILTON COUNTY COUNCIL
14411/,WA.
Mer Carter
)c-nes .F,71den
%}6di tat Levine
V & r
Li Hiatt
Rick M ney .•
We „At
8th 71-12-Y do.
— •
Br eaver
ATTEST:
Thrk 1110-14
• Robin M.Mills,Auditor
Prepared by: Mic,hael A. Howard
Hoard&Associates
694 Logan Street
Noblesville,IN 46060
(317)773-4212
THOlvISON TIF DISTRICT PROJECT BUDGET
2005 SERUM
1. ROW Acquisition $ 3,313,500
Illinois Street from
Clarian to 126th Street
2. Design Costs Illinois Street 286,500
to 126th Street
TOTAL $ 3,600,000
2006 SERDES
1. ROW Acquisition $ 1,740,000
Illinois Street from
126th Street to 136th Street
2. Construction& Construction 11,099,412
Inspection Illinois Street
Clarian to 136th Street
3. 3th Avenue Southwest and 2,400,000
4th Avenue Southwest Realignrnent
4. Contingency $ 260,538
TOTAL $15,500,000
EXHIBIT A
-
' HAMILTON GOLrNTY<REDOELOO.MENTOOMMIS51014
Thar*tin Elecctronics Econoniic Developrent Aren
AMORTIZATION OFS5,580,000 OF OUTSTANDING
TAX 1 NCREM ENTREFUNDING.REVENUF.'BONDS'OF2005
Bonds dated November.3,2005' .
Total
Payinent Principal Interest Debi Bond Year
. Dare Outstanding Principal Rate lriterest Service Debt Seri.ice
08/006 $5,580,000 $70.000 3.003' $125680.00 5195;680.00.
02%01/07 5,51040. /0,0.00 3:20% 124,630.00 191;630.00. 5390,310.00
08101/07 540,000 70,000 3
, 4 20;'0 123;510.00 193,510.00
02/01/08 5,370,000 75;000 3 401. 122,390.00' 197,390.00. 390,900.00
08/01/08. 5,295,000 75000 3:40% 121,115.00 196;1;15.00.
02/01109 5,220,000 75;000 3:60% .119,840.00 19.3;840.00 390,955.00
08'01i09 5;145,000 75,000 3,60% 118:490.00 1.93,490,00.
02/01%1.0 5,070;030 '80,000 3;70% 117;1400 197140,00 390.630.00
08/01/10: 4,990;000 80,000 . 70% 115;660.00. 195;660.00
02/01111 4,910,000 80,000` 3.80%. 114,180.00 194,180;00' 389,840.00•08101!1,1. 4,830;000 85.000 3 80/ 112;660.00 197,660:00
•
02/01/12 4745,000 85,000 3.90% 11-1;015.00 146,045.00 393„705.00
08101/12 4,660,000; 85,000 3.90°./0. 109,387.50 194387;50
02/0113 4575000 90,000 4.00/ 107,730:00 197730,00 39=,117.50
08/01/13 4,485;000 90.:000 4:01.)0. 105;930.00 1° .930:00
020/14 4,395000 90,000 (I) 4.10%, 104,130.00 194,130.00• 390.0600
08101/14 4;305,000 .95000 (I) 4.10/ 102,235.00. 197285.00 .
02/003 4,210,000 95,000 (2) 4.20'/ 10.0,337'0 l°5. 75°
001/15 4;115;000 95,000 (2) 4.200 9834250 19.342;50 392:62150
02/01/16 4020,000 100,000 (3) 4:25 1. 9634750 196;34750 389,690.00
08`01/16' 3;920,0000 100,000 (3) 425%. 2
94,22 .50 194,222.50
07101/17 3;820,000 105,000 (4) 430% 92,09750 197,097,50 391,320.00
98101/17 3,715,000 105;000 (4) 4.30% '59;840.00. 19 4,840.00
02/01/1$ 3;610,000 110,000 (5) 4,40%_ 87582.50 197,58150 392,42250
.08/01/18 .3,500,000 110,000. (5) 4.400 85,162,50 .195,162.50
02101/19. 3;39000 110;000 (6) 430'/0 82,742;50 102,742:50 387;905:07
• 08/01/19 .1280,000 )15,000'.(6) 4.50% 80,267.50 195267.50
02/41/20 3;165,000 115;000 (7) 4:60% 77;680.00 192.680.00 387,94750
08/01/20 3,050,000 120,000 (7) 460% 75035:00 195035.00
02/01/21 2,93000 125,000 (8) 4:70 72 275.00 197,275,00 392.310.00
08/01/21 2805,000 1?°;000 (8) 470% 69337;50 194.337:50
.02/0)/22 248.6,000 130;000, (9) 4.l5% 66,400.00 196.400.00 '390.737.50
08/01/22 2550;000 130,000' (9) 4_75!o 63,312 54' 493;31150
02%01%23 2,420,000 135,000 (10) 4,80% 60,225.00. 7.95 225;00 388.537":0
08/0123 2;285;000 140,000 ,(10). .4:80% 56,985:00 196,985.00
.02/01/24 2,145;000 '40,000.(I I). 5010;0 23,625.00 193;6_5.00 '3.90,610:00
08/01/24 2.005,000 145,000 (11) 5.00'!0; 50.,)25:00 195,125:00
02/01/25 1,860;000 150,000.(1 i) 5.00 ; 4650000 196,500:00 391.625.00
08/01/25 1,7i0,000 155;000 (11) 5.00% 42050:00 19775000
02%01/26 1,555,000' 155;000 (11) 5.00% 38,875.0.0 493,875.00 39:1;625.00
' 08/01/26 I;400,000. 160000,(1 I) 5:00% 35,000:00 195,000.00
02/01127 ),2407000. 16000 (II) 5:00% 31.,000;00 196:000.00 391,000.00
08/0127 107000 170:000 (II) 5.00°/0 • 26;875.00 196,875:00
-02101/28 905,000 175;000 (I.1) 5.00% 22.625.00 197,625.00 394;500,00
• 08/01/28 730,000 175;000 (I I)" 5;00°,'0 .18.250.00 193250,00
02/01/29 555,000 180,0G0 (II) 5.00% 13,875.00 193',875.00 .387,125.00
08i01/29 375,000 185,000'(11i 5.90?,4 9,375.00 194;375:00
02101130 190,000 190,000 (11) 5[007' 4;750.00. 194,750:00 . 389,125.00
Totals 55,580,000 _ $3,797,620.00 59,377,620.00• $9,377,620.00
•
(1)5185,000 olteiin bonds/he August I.2014. (6) 5225000 of tent bonds due August 1,2019:
(2)$190,000 of terr,i bonds due August i,2015. (7) $2.35:000 of term bonds due August 1,2020_.
(3)$200,000 of term bonds due August.I,2016: (8) 8250.000 of term bonds due August 1,202.1..
(4) 5219;000 of term bonds dnieAugust 1,2017. (9) 5260,000 octerrntorals due August 1,2021
(5)5220;•00 of tern bends due August 1 2018. (10) 5275,000 of term bonds due August 1,2023
(11)$2,145,000 of tetra bonds due February 1:,2030.
•(Sub}e'ct to the comoitints in the accompanying report •
•dated IvIaich 3,2006 of Umbaugh.)
B.9
H 0,111-TON COUNT\REDEVELOPMENT COMMISSION
' Tho»unn'El.edrnnics Economic Deretopmenr,trea
SCHEDULE OF AMORTIZATION OF 519,080,000 PRINCIPAL
AMOLUNTOFTAX INCREMENT REVENOE'BONDS OF 2006
.Assumes Bonds dated March 16;2006
Total
Payment Pnrcipal Interest Debt Capitalized Net Bond Year
Date Outstanding Principal . Rate Interest Service Interest Debt service , Debt Scrvice .
08101/06 81908,000 S341273.44 5341273.44 (5341,273:44) 50.00
02101,07 19,080,000 455;031.25 455;031.25 (455 031,25) 0.00 50.00
48:01107 19 080,000 455 03135 455,031:25 (45503125) 0.00'
02101(08 19,030000 455,031.25 455;031.25 (455031.25) 0.00 0,00
08101/08 14030,000 455,03125 455,031:25 455 031.25
02,01/09 19,030,000 455;031.25 455,031.25 455,031.25 910,0'02.50
03!01/09 I9 080000 8255,000 3.75% '*550.125 710,031.25 710031.25
02/0100 18,825,000 260000 1190% 450250.00 710,2)0:00 710,250:00 1,420281.25
08/01/10 18,565,000 265,000 3.903 445;180.00 710,18000 710;180.00
•
03201111 18;300,000 370;000 4.00% 4'40;012:50 710,0125{1 976,012:50 1,4209150
08101/il 18.030•000 271;000 4.00% 434;612:50 704,612.50 70901120
02/01/12 17,755;000 280,000 4.10% 429,11230 709,11250 709,11250 1,418,72500
' 08/01112 17,475;000. 280,000 4,10'! 42337/50 70,3,37250 70,372.50
02101'13 17;195;000 295,000 4.20°0 417,632.50 712;632-50 712,632.50 1;416005.00
08%01/13 16;900,000 300000 420% 411,437:50- 711,43750 711437.50 •
02/01/14 16600,000 305;000 4:30% 405;13750 710,137_50 710,137.50 1,421375.00.
03101/14 10;295,00 310;000 4.30°.70 398,580.00 708330,00. 708380,00
02/01/15 15;985;000 315;000 4.403 391,91500. 706,915.00 '706,915.00. 1;115,495.00 .
08101115 151670,000 325000 4.40% 334;935.00 709,985.00 709,985.00
03'01116 15;345000 330,000 430% 377;835,00 7o7,835,.0 707,835.00 1 417,820.00
0801116 15,015,000 340000 4.50,0, 370.410.00 i 0.00 710 410.00 710410.00
02'01117 14,675,000 345 000 4:50°0 362 760.00 707,760 00 707760.00 1,418,17000-
08/01/17 14330000 350000 :4:50% 354;997:50 104,9977.50 704,997.50 .,
01''01118 13,980000. 365;000 4.50.0 347,122.50 717,121.50 712,12250 1,417;120.00
MOO 8 I3,61.5000 370000. 4.50% 338,910.00 703,910:00 703,911100
02/01/19 13,245,000 330,000 4:60% 330,585.00 710 585.00 710,585:00 1:119,495.00.
•98101119 12,865,000 390;000. 4600.0 321;345.00 711,845.00 711,845.00
02.01/20 12.475;000 395;000 430/ 311875.00 707,875.00 707875.00 1,41932000
08101/20 12080000 405,000 . 470%0 303,59150 708,592.50 708392.50
001,21 11,675,000 415,000 -4:75°0 294,075:00 709,075,0.0 709,075;00 1,417667:50 .
08:01,21 11260;000 425,000 4.75% 28,218 75 709,213.75 709,218.75.
02101,22 10;835,000 435;000 1 5.0010 274,125.00 709125.00 709,125:00. 1,478,343.75
O 708,250;00
g8i7JD73 10400,000 445000 (I) 5,00°.0 263 50:00 708,250.00
•
02/01/23 9955,000 460;000 (I) 5:00/ 25x125.00 712,125;00 - 712,135:00 1,420;375.00
03)01123 9,495;000 470,000 (I) 5,000.6 240.625.00 710,625.00 710,625,00
02:01724 9,025000 150,000 (I) 500% 228,375.00' 703875.00 703,875_00 1,419300:00
08701/24 3,545,000 490;000 (1) 5.00 10 216;875.00 706,875.00 706,875:00
02,0125 8055,000 808;000 (1) 540% 204,625:00 709625.00 709,623.00 1,4.16500.00 •
08101/25 7;550000 520000 (I) 500/ 192,000:00 +12,00000 712000.00
02101126 7,030;000 530000 (I) 5.00% 179,000:00 709,00090 709000.00' 1,421,000:00
08/01126 6300,000 5.10;000 (2) 5.10/s 165,75000 705,750:00 705350.00
030127 5460000 560;000 (2) 5.100/ 151;48000 711,980.40 71:1980:00 1,417,730.00:
08.101127 5,400;000 570,000 (2) 5.10% 137;700:00 707;x00,00 707,700,00
02tging 1;5,30;000 585,000 (2) 8.10°io 123;165,00 708;165.00 708,165.710 1,4.15,$65..00
0001128 4;2.45;000 ' 600000 (2) 5.10% 108 24750 708,247,50 708 247,50
02101/29 3,645000 620,000 (2) 5:101 92;94730 712,94790 712,94750 1,421;19500
030129 3,025,000 630,000 (2) 5,10°/ 77,13750 707,13730 707137,50
a 50 711072:50 711;072:50 1,418;21000
02;01.3!1 2;391,000 .450,000 (2) 5.10/ 61;072_ ,
•08101180 1;745;000 860,000 (2) 5_I0°/3 44,49730 904;49730 904,497:50
02/01/31 835;000 885.000 (2) 510% , . .-.:2156750 907567,50 907 567:50 :1;812,065:00.
Totals 519080,000 515;139,479.69 534219,479,69.. ($1706;367.19) 0_, S32,513,11230 531513,11250
.C1)54,335,000 of Tenn Bonds due February 1;2026.
(2)56300.000 of Tenn Bonds due February I,2031.
(Subject to the comments in the accompanying report
dated March 3,2006 of Umbaugh.)
B-8
HIV'IV s'S 1' ASSOCIATES
xrioRNEys FOR HAMtU1ON coUNIN
AND
THE CrfY OF NO.133.,ESVI1,1
MIC1-3.4EL A. HOWARD DARREN j. MURPHY
hot fithurnhy0ori.net
December 16.2014
Mayor Jim Brainard
City of Cannel
Carmel City Hall
One Civic Square
Cannel, IN 46032
Honorable Diana Cordray
Clerk-Treasuret
City of Cannel
Carmel City Hall, Third Floor
One CiVie Square,
Carmel,IN 46032
Dear Mayor Brainard and Clerk TreaSurer, Cordray:
On behalf of Hamilton County,please accept this letter as a request for payment of$454,993.78
to Hamilton County,IncliaPq. This represents the s'hottfall of TIF collections from the'Thomson
Consumer Electronics Economic DeVeldpMent Area for the Fall of 2014. This amount is due
due owing from the City of Carmel to the County pin Stiant to the terins of an Interlocal
Agreement between the City and the County,approved by the Carmel City Council on August
15,2005,as well as Ordinance D-1771-05,also approved by the Common Council on the 15th
day of August,2005, both of which are attached.
As you may recall,this Interlocal Agreement and Ordinance was approved in order to allow the
Hamilton County Redevelopment Commission to issue its Tax.increment Revenue.Bonds of
2005 in the amount of S5::”0,000("the 2005 Bends")and its Tai Increment Revenue Bonds of
2006 in the amount of S19„080,000 the 2006 Bonds"). The 2006 bonds.were issued On March
3, 2006,and the proceeds of the bonds were used primarily for right of way acquisition and
construction of Illinois Street from 126th Street to l36 Street See page 5 of the Official
Statement for the bonds which is attached. The annual payments for the 2005 and 2006 bonds
are also shown on the attached pages B-8,B-9,and B019 of the Official Statement froth the 2006
Bonds.
-694 LOGAN STREET,NO LESWLLE,INplAiNfA 46060 - (317) 773-4212 FAX (317)770-2369-
- -
As is explained in the e-mail from Loren Matthes,this shortfall is the result of three major
factors:
The continued erosion of assessed value in the Area resulting from appeals granted by the
state.
2. A refund to a single taxpayer in the district for three years taxes plus intereSt,which
refund totaled$304,566.89,as shown on the attached settlement statement from the Auditor and
the calculation ofthe shortage.
3. The fact that a.fpaibr taNpayet-in the area had failed to pay the taxpayer's Fall 2014
installment of approximately$238,000.
The County needs your immediate attention to this issue and requests a-wire of the above amount
to the County by the 29th of December so that the 2014 payment will be made to the Trustee in a
timely manner..
I have reviewed and,attree With Loren Matthes' stimmaty of the causes for this shortfall. The
shortfall should be substantially reduced, but not eliminated in subsequent years because of the
follo‘Ving:
1. The taxpayers in the Area have hiStorically paid on time and we-would antiCipate,theth
doing so in the future.
2. The tax refund responsible for most of the shortfall was for three eats taxes, plus
interest. Only one-third dale amount of the appeal,-or about$85,000 per year would apply in
silbsecive0t years,
3. Finally;we have asked the Assessor to look at the properties ifl this din-id. As you are
probably aWare,there were substantial vacancies in this district during the economic doWnturn of
the past few years. With the economic development efforts of the City. we anticipate that most
Knot all of the vaeancies.have been filled in these buildings and the assessed values should
consequently rise. -
Finally, we would look forward to'Working with the City to refund these bonds to Substantially
reduce the future debt senice. Hopefully;this will eliminate,or at least Minimize;any future
shortfall paytherits from the City.
Very Wily YOUtS,
4
Michael A. Howard
MA
Enclosures
cc: Loren Matthes
Dawn Coverdale
CommissienerS
Invoice for Tax Increment Guarantee Payment
City of Uirtneh Indiana
Attn: Mayor James Brainard
and Diana Cordray
One Civic Square
Car 1.IN 46032
Payable to: Hamilton County, Indiana
Payment to Hamilton County for COIT Guarantee for Fall
of 20l4 for Thomson Constmet Electronics Economic
Development Area pursuant to Ordinance D-1771-05 $454,99178
Calculated as follows:
Fall 2014 Bond Payment
(Series 2005 &2006) 902,25100
LESS Net Fall 2014 Collections 388.531.47
Cash in Fund 58.727.75
TOTAL Receipts 447_259.22 (447_259.22)
Guarantee Payment .454,993.78
Payable December 29, 2014
Wiring Instructions:
To Hamilton Couiity Treasurer
Bank One
Account Number: 641874946
Routing Number: 074000010
Thomson TIF 2013 pay.2014 December Settlement
Distribution
Gross Distribution from Collections: $622,680.10
Less TlF Refunds due to appeals: 234,148.63
Net Distribution: 388,531.47
Amount currently in Fund: 58,727.75,
Bond Payment: 902,253_00
Shortage $454,993:78