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HomeMy WebLinkAboutResolution 2016-15 (creating Liquidity Reserve for Midtown bonds)RESOLUTION NO. 2016-15 A RESOLUTION OF THE CITY OF CARMEL REDEVELOPMENT COMMISSION AUTHORIZING USE OF FUNDS IN THE CARMEL REDEVELOPMENT COMMISSION SUPPLEMENTAL RESERVE FUND TO SUPPORT MIDTOWN BONDS 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 one or more series 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, following a public hearing, the Commission adopted a resolution approving the Lease on February 15, 2016; 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 adopted its Resolution No. CC -03-21-16-01 on March 21, 2016, approving this proposed use of the Supplemental Reserve Fund; and WHEREAS, the Commission now desires to approve the proposed use of the Supplemental Reserve Fund 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. Authorization of Use of Supplemental Reserve Fund. The Commission hereby makes 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 Commission is hereby authorized to enter into an agreement (the "Supplemental Reserve Fund 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 Supplemental Reserve Fund Agreement satisfies and is consistent with the conditions set forth in Section 1. The President, Vice President or Secretary of the Commission, and each of them, is hereby authorized to execute the Supplemental Reserve Fund Agreement on behalf of the Commission, in form of substance as such officer deems necessary or desirable. 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. ADOPTED this 15'h day of June, 2016. CITY OF CARMEL REDEVELOPMENT Vice President member DMS AWILLIAMS 3823492v2