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HomeMy WebLinkAboutResolution 2016-14 (creating coverage reserve for Midtown bonds)RESOLUTION NO. 2016-14 A RESOLUTION OF THE CITY OF CARMEL REDEVELOPMENT COMMISSION CREATING A COVERAGE RESERVE FUND TO SUPPORT LEASE RENTAL PAYMENTS IN CONNECTION WITH THE MIDTOWN PROJECT WHEREAS, the City of Carmel Redevelopment Authority (the "Authority") has been created pursuant to Indiana Code 36-7-14.5 as a separate body corporate and politic, and as an instrumentality of the City of Carmel, Indiana (the "City"), to finance local public improvements for lease to the City of Carmel Redevelopment Commission (the "Commission"); and WHEREAS, the Authority has adopted, or is expected to adopt, a resolution approving (a) approving a proposed lease agreement (the "Lease") between the Authority, as lessor, and the Commission, as lessee, for the lease of certain property located in the Old Town Economic Development Area in the City (the "Economic Development Area"), and (b) indicating its intent to issue one or more series of its taxable lease rental revenue bonds (collectively, the "Bonds"), to provide funds for the purposes of (i) financing all or a portion of two parking garages, a public plaza and related infrastructure improvements, which are part of a development commonly referred to as the Midtown project in the City (such development, the "Midtown Projects"); (ii) if necessary, funding a debt service reserve fund or paying the premiums for one or more municipal bond insurance policies and/or one or more debt service reserve fund credit facilities, if any; (iii) if necessary, paying capitalized interest on the Bonds; and (iv) paying all costs incurred on account of or in connection with the issuance and sale of the Bonds, including the premiums for any credit enhancement or credit facility purchased in connection with the issuance of the Bonds; and WHEREAS, the Bonds will be payable from revenues received by the Authority pursuant to the lease rental payments made from the Commission to the Authority under the Lease (the "Rental Payments"); and WHEREAS, the Commission reasonably expects to pay the Rental Payments during the term of the Lease from certain tax increment revenues derived from the Midtown Allocation Area established within the Economic Development Area to be received by the Commission pursuant to Indiana Code 36-7-14, as amended (the "TIF Revenues"), or other legally available revenues of the Commission, including, but not limited to, any Payment In Addition to Taxes agreements with respect to the Midtown Projects (any such agreements, collectively, the "PIATTs") and any developer or component guarantee agreements with respect to the Midtown Projects (any such agreements, collectively, the "Guarantee Agreements"), and the payment of the Rental Payments will be secured solely by a back-up pledge of the revenues derived by the Commission from the levy of a special benefits tax pursuant to Indiana Code 36-7-14-27 (the "Special Tax"); and WHEREAS, the Commission now desires to establish a coverage reserve fund into which certain revenues of the Commission shall be deposited and set aside for use on the terms and conditions set forth herein. NOW, THEREFORE, BE IT RESOLVED by the City of Carmel Redevelopment Commission, governing body of the City of Carmel Department of Redevelopment, as follows: Section 1. Establishment of Coverage Reserve Fund. The Commission hereby establishes the Midtown Coverage Reserve Fund (the "Coverage Reserve Fund"). Any revenues received by the Commission from the TIF Revenues, the PIATTs or the Guarantee Agreements, which are not required to pay the Rental Payments under the Lease and which are determined by the President of the Commission to be excess revenues, shall be deposited in the Coverage Reserve Fund on an annual basis. The Coverage Reserve Fund shall be a separate fund of the Commission and shall be used solely to pay any shortfall on the Rental Payments as they come due under the Lease, prior to the levying of the Special Tax. Upon the termination of the Lease, the Coverage Reserve Fund shall be dissolved, and any money remaining in the Coverage Reserve Fund shall be transferred to the Commission and may be used by the Commission for any purpose permitted by law. Section 2. Authorization of Clerk -Treasurer. The Clerk -Treasurer of the City, as Treasurer of the Commission, is hereby authorized and directed to take all actions necessary or desirable to accomplish the establishment of the Coverage Reserve Fund as set forth in this resolution. Section 3. Authorization of Other Actions. Each of the President, Vice President and Secretary of the Commission is hereby authorized and directed, for and on behalf of the Commission, 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 Commission 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 Commission. 2 ADOPTED this 15th day of June, 2016. CITY OF CARMEL RED COMMISSION C, '0 Vice President G Secretary Member DMS AWILLIAMS 3824509v2 a �r