HomeMy WebLinkAboutResolution 2017-20 (KAR TIF pledge)RESOLUTION NO. 2017-20
A RESOLUTION OF THE CITY OF CARMEL REDEVELOPMENT COMMISSION
PLEDGING CERTAIN TAX INCREMENT REVENUES TO THE PAYMENT OF
ECONOMIC DEVELOPMENT REVENUE BONDS OF THE CITY OF CARMEL
WHEREAS, the City of Carmel Redevelopment Commission (the "Commission") has
created the North Illinois Street Economic Development Area, has designated a portion of such
area as the KAR Allocation Area (the "Allocation Area") for purposes of the allocation and
distribution of property taxes under IC 36-7-14-39, and has created the KAR Allocation Area
Fund (the "Allocation Fund") pursuant to IC 36-7-14-39; and
WHEREAS, KAR Auction Services, Inc., or an affiliate or designee thereof (the
"Company") intends to finance all or a portion of the costs of the design and construction of the
projects listed in Exhibit A hereto (collectively, the "Projects"), which will be located in or
physically connected to the Allocation Area; and
WHEREAS, the City of Carmel Economic Development Commission and Common
Council have approved the issuance of the City of Carmel, Indiana, Economic Development
Revenue Bonds, Series 2018 (KAR Auction Services, Inc. Project), in one or more series (the
"Bonds"), the proceeds of which will be provided to the Company and applied to costs of the
Projects; and
WHEREAS, as an inducement to the Company to locate the Projects in the City of
Carmel, the Commission has agreed to pledge a portion of the tax increment revenues generated
from the real property of the Company in the Allocation Area to the payment of the Bonds;
NOW, THEREFORE, BE IT RESOLVED by the City of Carmel Redevelopment
Commission, as follows:
1. All real property tax increment revenues generated from the Allocation Area and
deposited in the Allocation Fund pursuant to IC 36-7-14-39 shall be set aside and used only as
set forth in this Resolution.
2. Ninety percent (90%) of the real property tax increment revenues generated from
the Allocation Area and deposited in the Allocation Fund pursuant to IC 36-7-14-39 (the "TIF
Revenues") shall be set aside and used only as set forth in this Resolution. The remaining ten
percent (10%) of the real property tax increment revenues generated from the Allocation Area
(or the assessed value attributable thereto) may be used by the Commission for any purpose
permitted by law, including the release of assessed value to the taxing units as provided under
the Act.
3. On each January 15 and July 15, beginning July 15, 2019, all TIF Revenues shall
be immediately transferred to the trustee for the Bonds (the "Trustee") for deposit into the funds
and accounts and application in accordance with the trust indenture for any series of Bonds (the
"Indenture").
4. Pursuant to IC 36-7-14-39(b)(2)(D) and IC 5-1-14-4, the Commission hereby
pledges the TIF Revenues deposited into the Allocation Fund to the Trustee for disposition in
accordance with the Indenture.
5. Upon the defeasance of the Bonds, any moneys remaining in the funds and
accounts under the Indenture shall be returned to the Commission for deposit into the Allocation
Fund and may be used by the Commission for any purpose permitted by law.
6. This resolution shall take effect immediately upon adoption by the Commission.
Adopted the 20th day of December, 2017.
CITY OF CARMEL REDEVELOPMENT
COM ISSION
President
aCcrCLary
Member
Member
EX14TRYT A
DESCRIPTION OF PROJECTS
Proposed Proiects
The acquisition of land, site preparation and the design and construction of an
approximately 700 -space structured parking facility, to support the construction of a new
approximately 250,000 square foot headquarters office facility for KAR Auction Services, Inc.
(the "Company") to be located at the northeast corner of 111th Street and Illinois Street in the
City of Carmel, which is in or directly serving and benefitting the KAR Allocation Area.
DMS AWILLIAMS 11236067x2