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HomeMy WebLinkAboutCC-12-14-15-01 Approving Use of CRC Funds to Make City Debt Service Payments Sponsor: Councilor Sharp RESOLUTION CC-12-14-15-01 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA APPROVING USE OF CARMEL REDEVELOPMENT COMMISSION FUNDS TO MAKE DEBT SERVICE PAYMENTS WHEREAS, the City of Cannel Redevelopment Commission (the "CRC"), as the governing body for the City of Cannel Redevelopment District, pursuant to Indiana Code 36-7- 14, as amended, has incurred the lease and bond obligations identified on Exhibit A attached hereto (collectively,collecti , the"Obligations"); and WHEREAS, each of the Obligations has an upcoming payment date of December 15, 2015; and WHEREAS, the City of Cannel, Indiana (the "City") historically has provided for the payment of the Obligations with funds from the City's general fund, including funds from the City's distributive share of county option income taxes, but currently lacks sufficient appropriations from the general fund to make the December 15, 2015,payments; and WHEREAS, pursuant to Section 2.4 of the Revenue Deposit Agreement between the City and the CRC dated as of November 20, 2012, as subsequently amended (the "Revenue Deposit Agreement"), the City and the CRC agreed that all tax increment revenues generated from the Parkwood Economic Development Area and certain other funds would be held in a supplemental reserve fund (the "Parkwood Reserve") for so long as the bond obligations referenced in such agreement remain outstanding; and WHEREAS, the Common Council of the City (the "Council") desires to waive this provision of the Revenue Deposit Agreement to permit the CRC to apply funds contained in the Parkwood Reserve to the payments due on the Obligations on December 15, 2015, and to authorize the expenditure of other CRC reserves to fund such payments. NOW THEREFORE, BE IT RESOLVED by the Common Council of the City of Cannel, Indiana, as follows: 1. The Council hereby waives the provisions of Section 2.4 of the Revenue Deposit Agreement and authorizes the CRC to apply funds contained in the Parkwood Reserve to the payments due on the Obligations on December 15, 2015. The Council further authorizes the expenditure of other CRC reserves to fund such payments. 2. The Council agrees to reimburse the CRC for the full amount of the payments made on the Obligations by the CRC within sixty (60) days of December 15, 2015, from legally available funds of the City. 3. This Resolution shall be in full force and effect from and after its passage by the Council and approval by the Mayor as required by law. PASSED by the Common Council of the City of Cannel, this /" day of , 2015,by a vote of ( ayes and nays. COMMON COUNCIL OF THE CITY OF CARMEL,INDI Presiding Officer Kevin D. Rider 04- ze":4_ NO-r PAE6 ,E/VT Richard L. Sharp, President Pro Tempore Carol Schleif _.••• Rorr 1Q E. Carter W. Eric Seid sticker III S JW nk. , uc yder ATTEST: idke Diana L. Cordray, IAMC, Clerk-Treat er Presented by me to the Mayor of the City of Cannel, India this /S-day of ee-if- 2015, at q H$ A.M. - Diana L. Cordray, IAMC, Clerk- !reasurer Approved by me, Mayor of the City of Cannel, Indiana, this /5 day ofl , 2015, atra0 P .M. J es Brainard,Mayor ATTEST: t J Diana L. Cordray, IAMC, Clerk-Tre.: er Prepared by: Bruce D. Donaldson Barnes &Thornburg LLP 11 South Meridian Street Indianapolis, IN 46204 2 EXHIBIT A Obligations 1. Lease Agreement between City of Carmel Redevelopment Authority and City of Carmel Redevelopment Commission dated as of July 8, 1997, as subsequently supplemented and amended, securing the City of Carmel Redevelopment Authority County Option Income Tax Lease Rental Revenue Refunding Bonds, Series 2014A. 2. Lease between City of Carmel Redevelopment Authority and City of Cannel Redevelopment Commission dated as of July 1, 2006, as subsequently supplemented and amended, securing the City of Cannel Redevelopment Authority County Option Income Tax Lease Rental Revenue Bonds, Series 2006, and the City of Cannel Redevelopment Authority County Option Income Tax Lease Rental Revenue Refunding Bonds, Series 2014B. 3. Lease Agreement between City of Cannel Redevelopment Authority and City of Carmel Redevelopment Commission dated as of December 9, 2009, as subsequently supplemented and amended, securing the City of Cannel Redevelopment Authority County Option Income Tax Lease Rental Revenue Bonds of 2010. 4. City of Carmel, Indiana County Option Income Tax Revenue Refunding Bonds of 2011. DMS BDD 3243042v1 3