Loading...
HomeMy WebLinkAboutResolution CC-03-21-16-01 Authorizes CRC to use Reserve Fund to Secure ProjectsSponsor: Councilor Worrell RESOLUTION CC -03-21-16-01 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, AUTHORIZING USE OF FUNDS IN THE CARMEL REDEVELOPMENT COMMISSION SUPPLEMENTAL RESERVE FUND TO SUPPORT MIDTOWN BONDS Synopsis: Resolution authorizes the Carmel Redevelopment Commission to use a portion of the Supplemental Reserve Fund previously established by an Amended & Restated Revenue Deposit Agreement between the Commission and the City of Carmel as a liquidity reserve fund to secure proposed Redevelopment Authority bonds to be issued to fund projects in Midtown. WHEREAS, on March 7, 2016, the Common Council (the "Common Council") of the City of Carmel, Indiana (the "City") adopted its Resolution CC -02-15-16-02 (the "Midtown Bond Resolution") approving the issuance of bonds (the "Bonds") of the City of Carmel Redevelopment Authority (the "Authority") to finance two parking garages, a public plaza and related infrastructure improvements for what is commonly known as the Midtown project in the City; and WHEREAS, the Bonds will be payable from revenues received by the Authority pursuant to a Lease (the "Lease") between the Authority and the City of Carmel Redevelopment Commission (the "Commission"), which Lease was also approved by the Council in the Midtown Bond Resolution; and WHEREAS, in order to secure the Bonds, the Authority will need to have available a debt service reserve fund (the "Midtown Bond Reserve") accessible by the trustee for the Bonds (the "Bond Trustee") to provide liquidity for Bond payments in the event that Lease rental payments are insufficient for such purpose; and WHEREAS, the City and the Commission have authorized the execution of an Amended & Restated Revenue Deposit Agreement (the "RDA") which governs the required uses and priorities of TIF Revenue (as defined therein) of the Commission; and WHEREAS, the proposed RDA creates a Supplemental Reserve Fund (as defined therein) into which certain amounts of the TIF Revenue are required to be deposited and held by the Commission; and WHEREAS, the Commission desires to make a portion of the Supplemental Reserve Fund available to the Bond Trustee on behalf of the Authority to meet the requirements of the Midtown Bond Reserve; and WHEREAS, the Common Council desires to approve this proposed use of the Supplemental Reserve Fund on the terms and conditions set forth herein. NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, as follows: Section 1. Authorization of Use of Supplemental Reserve Fund. The Common Council hereby authorizes the Commission to make available to the Bond Trustee access to a portion of the Supplemental Reserve Fund, subject to the following conditions: (a) the maximum amount of Supplemental Reserve Fund moneys that may be used to satisfy the Midtown Bond Reserve requirement shall not exceed $1,500,000; (b) in the event that funds in the Supplemental Reserve Fund are drawn upon by the Bond Trustee to make debt service payments on the Bonds, the Commission shall be required to impose a special benefits tax at the next opportunity in an amount sufficient to pay any outstanding debt service due on the Bonds plus an amount necessary to fully reimburse the Supplemental Reserve Fund for the draw thereon, unless (i) the Commission has fully provided for such amounts from other available funds of the Commission, or (ii) the Common Council has directed that other available funds of the City shall be used in lieu of the special benefits tax; and (c) the authorizations contained herein shall expire upon the defeasance of all outstanding Bonds. Section 2. Authorization of Reserve Fund Agreement. The Council hereby authorizes the Commission to enter into an agreement with the Authority and/or the Bond Trustee regarding the application of Supplemental Reserve Fund moneys as described in Section 1 of this Resolution, so long as the agreement satisfies and is consistent with the conditions set forth by the Common Council in Section 1. Section 3. Authorization of Other Actions. Each of the Mayor, any member of the Common Council and the Clerk -Treasurer, and any other officer, employee or agent of the City is hereby authorized and directed, for and on behalf of the City, to execute and deliver any document and to take any action as such person determines to be necessary or appropriate to accomplish the purposes of this Resolution, such determination to be conclusively evidenced by such person's execution of such document or such person's taking of such action. Section 4. Severability. If any part of this Resolution shall be adjudged to be invalid by a court of proper jurisdiction, it shall be conclusively presumed that the Common Council would have passed the remainder of this Resolution without such invalid part. Section 5. Effectiveness. This Resolution shall be in full force and effect from and after its adoption by the Common Council and upon compliance with the procedures required by law. 2 PASSED by the Common Council of the City of Carmel, this day of by a vote of ayes and nays. COMMON COUNCIL OF THE, O A L, I A evin D. Rider Carol Schleif 2��&&7AL� Jeff 1 L[.4lL " V -Eu JL LJ1 "1 'Bruce -Kimball _ V f of Carmel, Indiana City Presented b me to the Mayor of the City of 2016, at 7Y DM. Approved by me Mayor of the 2016, at jL— �P-M. 2016, this d4'qt API MCi9 , Pauley, Cjrerk-Treasurer City of Carmel, Indiana, this 2 _qday of Prepared by: Bruce D. Donaldson Barnes & Thornburg LLP 11 South Meridian Street Indianapolis, IN 46204 DMS BDD 37758580 J es Brainard, Mayor