HomeMy WebLinkAboutResolution CC-06-20-16-01 CRC Supplemental Reserve AccountSponsors: Councilors Campbell, Rider,
Schleif and Worrell
RESOLUTION NO. CC 06-20-16-01
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL,
INDIANA, AUTHORIZING THE EXPENDITURE OF FUNDS IN THE CARMEL
REDEVELOPMENT COMMISSION'S SUPPLEMENTAL RESERVE ACCOUNT
Synopsis: Resolution would allow the Carmel Redevelopment Commission to use funds from
its Supplemental Reserve Account to pre -pay a debt obligation, thereby saving a significant
amount of money in future interest costs.
WHEREAS, the Carmel Redevelopment Commission (the "CRC") may not expend funds
from the CRC Supplemental Reserve Account without the approval of the Common Council of the
City of Carmel, Indiana (the "Council");
WHEREAS, on October 1, 2013, the CRC executed the Amended and Restated
Installment Purchase Agreement (Secondary Number One) with Village Financial, LLC (the
"Agreement");
WHEREAS, there are currently funds in the CRC Supplemental Reserve Account that
would enable the CRC to make a partial prepayment toward the Agreement;
WHEREAS, a partial prepayment in the amount of $2,336,000 made in fiscal year 2016
would save the CRC $900,000 in future interest costs; and
WHEREAS, prepayment of the remaining amount of the Agreement before December 31,
2018 would save an additional estimated $1,000,000 in future interest costs.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Carmel, Indiana, as follows:
Section 1. The foregoing Recitals are fully incorporated herein by this reference.
Section 2. The Council hereby authorizes the CRC to make a partial prepayment toward
the Agreement in the amount of $2,336,000 in fiscal year 2016 using funds from the CRC
Supplemental Reserve Account.
Section 3. The Council further authorizes the CRC to pay the remaining amount of the
Agreement from the CRC Supplemental Reserve Account prior to December 31, 2018 if
funds in the Supplemental Reserve Account are adequate and available.
This Resolution was prepared by Jon Oberlander, Carmel Senior Assistant City Attorney, on 6/8/16 at 4:55 p.m.
S:\joberlander\Resolutions\City Council\CRC Supplemental Reserve Account Payment Resolution w synopsis.docx
Sponsors: Councilors Campbell, Rider,
Schleif and Worrell
ASSED by the Common Council of the City of Carmel, Indiana th4� day of
2016, by a vote of 6 ayes and D-- nays.
COMMON COUNCIL OF THE CIT OF CARME
Presiding Officer kevin Rider
R nald E. Carter, President Carol Schleif r\
fvo� �Qwn-�
Sue Finkam, Vice -President
n422e� k"
Bruce Kimball
Laura Campbell
Presented by me to the Mayor of the City of Car ana thiay
2016, at E.M. p
-istine S. PauXy
1� r'
Approved by me, Mayor of the City of Carmel, Indiana this v day of y 2
2016, at -.m.
I., L-3=,
/6s Brainard, Mayor
This Resolution was prepared by Jon Oberlander, Carmel Senior Assistant City Attorney, on 6/8/16 at 4:55 p.m.
S:\joberlander\Resolutions\City Council\CRC Supplemental Reserve Account Payment Resolution w synopsis.docx