HomeMy WebLinkAboutResolution CC-01-04-16-02 Lease Rental Bonds $160,000,0002
RESOLUTION CC -01-04-16-02
AS AMENDED
Sponsor: Councilor Carter
4 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA,
5 APPROVING A LEASE BETWEEN THE CITY OF CARMEL REDEVELOPMENT
6 AUTHORITY AND THE CITY OF CARMEL REDEVELOPMENT COMMISSION AND
7 TAKING OTHER ACTIONS RELATED THERETO
8 WHEREAS, the City of Carmel Redevelopment Authority (the "Authority") has been
9 created pursuant to Indiana Code 36-7-14.5 as a separate body corporate and politic, and as an
10 instrumentality of the City of Carmel, Indiana (the "City") to finance local public improvements for
11 lease to the City of Carmel Redevelopment Commission (the "Commission"), as the governing
12 body of the City of Carmel Redevelopment District (the "District"); and
13 WHEREAS, the Authority has adopted, or is expected to adopt, a resolution indicating its
14 intent to issue one or more series of its lease rental revenue bonds, all or any portion of which may
15 be taxable or tax-exempt for federal income tax purposes, in the maximum original principal
16 amount of One Hundred Sixty Million Dollars ($160,000,000) (collectively, the "Bonds"), to
17 provide funds for the purposes of (a) financing the acquisition by the Authority from the City of the
18 real property described in Exhibit B to the Lease (as hereinafter defined) (the "Real Property"), and
19 the use by the City of the proceeds of such sale to finance or reimburse the cost of the design,
20 construction, renovation, improvement and/or equipping of the projects identified on Exhibit A
21 hereto and made a part hereof (clause (a), collectively, the "Projects"); (b) if necessary, funding a
22 debt service reserve fund or paying the premiums for one or more municipal bond insurance
23 policies and/or one or more debt service reserve fund credit facilities, if any; (c) if necessary, paying
24 capitalized interest on the Bonds; and (d) paying all costs incurred on account of or in connection
25 with the issuance and sale of the Bonds, including the premiums for any credit enhancement or
26 credit facility purchased in connection with the issuance of the Bonds (clauses (a) through and
27 including (d), collectively, the "Program"); and
28 WHEREAS, the Authority and the Commission have adopted, or are expected to adopt,
29 resolutions approving a proposed Lease Agreement in the form presented at this meeting (the
30 "Lease") for the purpose of paying the principal and interest on the Bonds issued pursuant to
31 Indiana Code 36-7-14.5 to finance the Program; and
32 WHEREAS, the annual rentals (the "Lease Rentals") payable by the Commission under the
33 Lease will be pledged by the Authority to pay debt service on the Bonds; and
34 WHEREAS, the Commission reasonably expects to pay the Lease Rentals during the term
35 of the Lease from a portion of the county option income tax revenues to be received by the City
36 pursuant to Indiana Code 6-3.5-6, as amended, or other general revenues of the City, which may be
37 transferred to, and received by the Commission from time to time or other legally available
38 revenues of the Commission, and the payment of the Lease Rentals will be secured solely by a
39 back-up pledge of the revenues derived by the Commission from the levy of a special benefits tax
40 pursuant to Indiana Code 36-7-14-27; and
VERSION A —1/18/16
41 WHEREAS, the Commission scheduled a public hearing regarding the Lease pursuant to
42 Indiana Code 36-7-14-25.2, as amended, and published a notice of such public hearing pursuant to
43 Indiana Code 5-3-1, and said public hearing has been held and all interested parties were provided
44 the opportunity to be heard at the hearing; and
45 WHEREAS, pursuant to Indiana Code 36-7-14.5-14 and Indiana Code 36-7-14-25.2, the
46 Commission has adopted a resolution finding that the lease rental payments to be paid by the
47 Commission to the Authority pursuant to the Lease are fair and reasonable, and that the terms of the
48 Lease are based upon the value of the Leased Premises (as defined in the Lease) and the use of the
49 Leased Premises and the Projects throughout the term of the Lease will serve the public purpose of
50 the City and is in the best interests of its residents; and
51 WHEREAS, the Common Council of the City (the "Common Council") desires to approve
52 the Lease pursuant to Indiana Code 36-7-14-25.2, which provides that any lease approved by a
53 resolution of the Commission must be approved by an ordinance or resolution of the fiscal body of
54 the City; and
55 WHEREAS, the proceeds of the sale of a portion of the Real Property to the Authority (the
56 "Sale Proceeds") have not been included in the existing budget for the City, and the City now
57 desires to appropriate the Sale Proceeds for the purpose of being applied to the payment of the costs
58 of the Program; and
59
60 WHEREAS, notice of a hearing on said appropriation has been duly given by publication as
61 required by law, and the hearing on said appropriation has been held, at which all taxpayers had an
62 opportunity to appear and express their views as to such appropriation;
63
64 NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY
65 OF CARMEL, INDIANA, as follows:
66 Section 1. Approval of Lease and Bonds. The Common Council hereby approves the
67 issuance of the Bonds and the execution and delivery of the Lease, as approved by the Commission,
68 pursuant to Indiana Code 36-7-14-25.2, including, if necessary, the levy by the Commission of a
69 special benefits tax pursuant to Indiana Code 36-7-14-27 during the term of the Lease to provide
70 necessary funds from which to pay the Lease Rentals under the Lease, all upon the following
71 conditions: (a) the maximum aggregate original principal amount of the Bonds shall not exceed
72 $160,000,000; (b) the maximum annual lease rental payment during the term of the Lease shall not
73 exceed $17,800,000; (c) the maximum interest rate on the Bonds shall not exceed six percent
74 (6.00%) per annum; (d) the Bonds may be subject to redemption prior to maturity on any date not
75 earlier than five (5) years following the date of issuance of the Bonds, with such specific dates and
76 redemption terms determined at the time of the sale of the Bonds and approved by the Authority in
77 the purchase agreement for the Bonds, all upon the advice of the financial advisor to the Authority;
78 (e) the maximum term of the Lease shall not exceed twenty (20) years; (f) payment of interest on
79 the Bonds may be capitalized for a period ending no later than August 1, 2017; and (g) the City may
80 not use the Bond proceeds for the construction of the "Rangeline Road streetscape with on -street
81 parking" project identified in Exhibit A until the Common Council has first reviewed all cost and
82 engineering traffic reports related to such project and has authorized the use of Bond proceeds for
83 such construction.
VERSION A — 1/18/16
2
84 Section 2. Sale of Right -of -Way; Appropriation of Sale Proceeds. The Common
85 Council hereby authorizes the sale to the Authority of the existing Real Property which will
86 comprise or be included in the Leased Premises under the Lease, for a price sufficient to cover the
87 costs of the Program, but in any event not to exceed $160,000,000. The Mayor, Clerk -Treasurer
88 and other officers of the City are hereby authorized to take such actions and execute such
89 documents as may necessary to effectuate such sale and transfer. There is hereby appropriated a
90 sum not to exceed $160,000,000, together with all investment earnings thereon, to be provided for
91 out of the Sale Proceeds for the purpose of providing funds to be applied to the costs of the
92 Program. Such appropriation shall be in addition to all appropriations provided for in the existing
93 budget and shall continue in effect until the completion of the Program. The Mayor and the Clerk -
94 Treasurer are hereby authorized to take all such actions and execute all such instruments as are
95 necessary or desirable to effectuate this appropriation, including the filing of a report of this
96 appropriation with the Indiana Department of Local Government Finance.
97 Section 3. Authorization of Other Actions. Each of the Mayor, any member of the
98 Common Council and the Cleric -Treasurer, and any other officer, employee or agent of the City is
99 hereby authorized and directed, for and on behalf of the City, to execute and deliver any contract,
100 deed, agreement, certificate, instrument or other document and to take any action as such person
101 determines to be necessary or appropriate to accomplish the purposes of this Resolution, such
102 determination to be conclusively evidenced by such person's execution of such contract, deed,
103 agreement, certificate, instrument or other document or such person's taking of such action.
104 Section 4. Severability. If any part of this Resolution shall be adjudged to be invalid by
105 a court of proper jurisdiction, it shall be conclusively presumed that the Common Council would
106 have passed the remainder of this Resolution without such invalid part.
107 Section 5. Repeal of Conflicting Resolutions. All ordinances, resolutions and orders, or
108 parts thereof, in conflict with the provisions of this Resolution, are, to the extent of such conflict,
109 hereby repealed.
110 Section 6. Effectiveness. This Resolution shall be in full force and effect from and after
111 its adoption by the Common Council and upon compliance with the procedures required by law.
112
113
VERSION A -1/18/16
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PASSED by t4 Common Council of the City of Carmel, this day of lbw` , 2016,
by a vote of ayes and —t- nays.
COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA
Pre 'ding Officer
ATT��S
Christine Pauley, Clerk -Treasurer qt the City
of Carmel, Indiana
Presented by me to the Mayor of the City of Carme ; Indiana, thisc� day of- ,
2016, at��.M. `%:��
Christine Pauley, C16jiSTreasure
Approved by` Mayor of the City of Carmel, Indiana, this /0 day of
2016, at_ M.
ll �
ATTEST:
114 J,
Christine Pauley, Clerk -Treasurer
Prepared by: Bruce D. Donaldson
Barnes & Thornburg LLP
11 South Meridian Street
Indianapolis, IN 46204
VERSION A— 1/18/16
J es Brainard, Mayor
V.
127 EXHIBIT A
128
129 DESCRIPTION OF PROJECTS
130
131 All or any portion of (a) the design, inspection, construction, renovation, replacement,
132 improvement and/or equipping of certain local public improvements and other infrastructure
133 projects in the City, including, without limitation, certain road and street reconstruction, resurfacing
134 or improvement projects, roundabout improvements, reconstruction, resurfacing or improvements
135 of multi -use paths, together with any sidewalk, drainage, lighting, utilities, streetscaping,
136 landscaping and/or other improvements related to any of the foregoing projects; (b) the acquisition
137 of any land or right-of-way necessary therefor; and (c) all utility relocation, acquisition, design,
138 inspection, construction, demolition, renovation, remediation, improvement, excavation, site work
139 preparation and/or equipping projects related to the projects described in clauses (a) and (b) and any
140 and all costs related thereto (clauses (a) through and including (c), collectively, the "Projects"). The
141 estimated costs of the Projects are set forth on the following page(s) attached hereto and
142 incorporated herein.
VERSION A-1/18/16
A-1
DMS BJB 3355970x2
2016 Bond Projects — DRAFT 12.21.2015
Department of Engineering
Underground Relocation of existing Duke Energy Transmission Lines from Carmel Drive
to 2nd
Street SW:
ESTIMATED COST:
$
10,000,000
Landscaping and Streetscape Improvements within existing Roundabouts throughout the City:
ESTIMATED COST:
$
8,000,000
Land Acquisition for Redevelopment ESTIMATED COST:
$
7,000,000
Resurfacing and Multi -Use Path construction to satisfy requirements of the Southwest Clay Annexation:
ESTIMATED COST:
$
3,500,000
Improvements are scheduled at the following locations consisting of construction, inspection, utility
relocation, land acquisition, and landscaping. These locations are currently federally funded and the
estimated costs listed below are the City's development costs and the local match associated
with
construction:
96th Street and Priority Way Roundabout * ESTIMATED COST:
$
968,750
116th Street and Gray Road Roundabout * ESTIMATED COST:
$
325,000
116th Street and Hazel Dell Parkway Roundabout * ESTIMATED COST:
$
$1,168,000
126th Street and Path from Keystone to Hazel Dell * ESTIMATED COST:
$
626,250
Carmel Drive and Old Meridian Roundabout * ESTIMATED COST:
$
416,250
Carmel Drive and Rangeline Road Roundabout * ESTIMATED COST:
$
2,187,500
Guilford Road — City Center to Main Street Reconstruction * ESTIMATED COST:
$
1,127,000
Improvements are scheduled at the following locations consisting of construction, inspection, utility
relocation, land acquisition, and landscaping:
96th Street and Keystone Parkway adjacent roadways * ESTIMATED COST:
$
5,171,620
96th Street and Keystone Parkway Interchange construction ESTIMATED COST:
$
34,028,039
96th Street and Randall Drive Roundabout * ESTIMATED COST:
$
669,950
111th Street and Rangeline Road Roundabout * ESTIMATED COST:
$
400,000
116th Street and College Avenue Roundabout * ESTIMATED COST:
$
500,000
116th Street and Guilford Avenue Roundabout * ESTIMATED COST:
$
500,000
126th Street reconstruction - Hazel Dell to River Road * ESTIMATED COST:
$
1,546,100
126th Street reconstruction — Rangeline to Keystone ESTIMATED COST:
$
6,248,749
AAA Way and 116th Street Roundabout ESTIMATED COST:
$
3,970,000
AAA Way and Carmel Drive Roundabout ESTIMATED COST:
$
2,187,500
A-1
2016 Bond Projects — DRAFT 12.21.2015
Department of Engineering
Gray Road and 126th Street Roundabout
ESTIMATED COST:
$
2,182,500
Gray Road and 136th Street Roundabout
ESTIMATED COST:
$
2,137,500
Gray Road and Main Street Roundabout
ESTIMATED COST:
$
2,122,500
Hazel Dell Parkway Cherry Tree to 1461h Street Widening
ESTIMATED COST:
$
2,862,500
Keystone Way Construction to connect to AAA Way
ESTIMATED COST:
$
1,200,000
Monon Trail Reconstruction — City Center to Main Street
ESTIMATED COST:
$
6,200,000
Multi -Use Path Construction
ESTIMATED COST:
$
4,800,000
Pennsylvania Street and Carmel Drive Roundabout
ESTIMATED COST:
$
4,304,000
Rangeline Road and 4th Street Roundabout
ESTIMATED COST:
$
2,037,500
Rangeline Road from 136th Street to US 31
ESTIMATED COST:
$
3,876,000
Rangeline Road and City Center Drive Roundabout
ESTIMATED COST:
$
2,012,500
Rangeline Road Extension to Lowes Way connector *
ESTIMATED COST:
$
1,588,960
Rangeline Road Streetscape with on -street parking
ESTIMATED COST:
$
5,859,146
Spring Mill Reconstruction from 111th to Main Street
ESTIMATED COST
$
9,550,000
Towne Road and 116th Street Roundabout
ESTIMATED COST:
$
3,263,000
Total: Estimated Cost: $ 144,536,814
Projects denoted with an * anticipate Federal, State or other local funds to complete the project. Without
addition Federal, State or other local funding sources some projects may not be completed.
IM