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Carmel Lease Sufficiency Report (TIF) FINAL
CITY OF CARMEL REDEVELOPMENT AUTHORITY LEASE RENTAL SUFFICIENCY VERIFICATION TAXABLE LEASE RENTAL BONDS, SERIES 2019A-2 Dated April 9, 2019 CITY OF CARMEL REDEVELOPMENT AUTHORITY TABLE OF CONTENTS Page(s) 1-2 Independent Accountants' Verification Report on Applying Agreed Upon Procedures Exhibit A Verification of Sufficiency of Lease Rental Payments Exhibit B Schedule of Lease Rental Payments Exhibit C Schedule of Amortization of $16,300,000 Principal Amount of Outstanding Taxable Lease Rental Bonds, Series 2017C-2 Exhibit D Schedule of Amortization of $8,170,000 Principal Amount of Taxable Lease Rental Bonds, Series 2019A-2 Exhibit E Schedule of Combined Amortization bakertitty MUNICIPAL ADVISORS Baker Tilly Municipal Advisors, LLC 8365 Keystone Crossing, Ste 300 Indianapolis, IN 46240 United States of America T: +1 (317) 465 1500 F: +1 (317) 465 1550 bakertilly.com INDEPENDENT ACCOUNTANTS' VERIFICATION REPORT ON APPLYING AGREED UPON PROCEDURES April 9, 2019 City of Carmel Redevelopment Commission Barnes & Thornburg LLP One Civic Square 11 South Meridian Street Carmel, Indiana 46032 Indianapolis, Indiana 46204 CITY OF CARMEL REDEVELOPMENT AUTHORITY TAXABLE LEASE RENTAL BONDS, SERIES 2019A-2 We have completed our engagement to perform the procedures enumerated below, which were agreed to by the City of Carmel Redevelopment Commission (the "Commission") and Barnes & Thornburg LLP solely to assist you with respect to your evaluation of the sufficiency of lease rental payments to be received by the City of Carmel Redevelopment Authority (the "Authority") to meet debt service obligations relating' to the Taxable Lease Rental Bonds, Series 2017C-2 (the "2017C-2 Bonds") and the Taxable Lease Rental Bonds, Series 2019A-2 (the "2019A-2 Bonds") issued by the Authority. Our procedures and findings are as follows: 1. We prepared a debt service schedule for the 2019A-2 Bonds. We compared the principal amounts, coupon interest rates, and maturity dates to those contained in the First Supplemental Trust Indenture dated as of April 1, 2019 and the Bond Specimen dated April 9, 2019 and found them to be in agreement. (See Exhibit D.) 2. We prepared a debt service schedule for the 2017C-2 Bonds. We compared the principal amounts, coupon interest rates, and maturity dates to those contained in the Trust Indenture dated December 1, 2017 and the Bond Purchase Agreement dated November 15, 2017 and found them to be in agreement. (See Exhibit C.) 3. We prepared a schedule of lease rental payments for the 2019A-2 Bonds and the 2017C-2 Bonds based on the requirements found in Appendix I to Lease Agreement dated October 10, 2017, as amended by the Addendum to Lease Agreement dated as of December 14, 2017, and as further amended by the Second Addendum to Lease Agreement dated as of April 1, 2019 and found them to be in agreement. (See Exhibit B.) City of Carmel Redevelopment Commission Barnes & Thornburg LLP April 9, 2019 Page 2 4. We compared the debt service requirements with the lease rental payment amounts and found that the ending balance of the lease rental payments net of the debt service requirements and an allowance for Trustee fees to be positive. (See Exhibit A.) This engagement was performed in accordance with attestation standards established by the American Institute of Certified Public Accountants (the "AICPA"). The sufficiency of these procedures is solely the responsibility of the specified users of the report. We make no representation regarding the sufficiency of the procedures summarized above, either for the purpose for which this report has been requested or for any other purpose. We were not engaged to, and did not perform an examination, the objective of which would be the expression of an opinion on the achievability of the lease rental sufficiency. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is issued solely for the information of, and assistance to, the addressees of this report. Additionally, this report should not be used by those who have not agreed to the procedures and taken the responsibility for the sufficiency of the procedures for their purposes. Under the terms of our engagement, we have no obligation to update this report because of events or transactions occurring subsequent to the date of this report. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly -owned subsidiary of Baker Tilly Virchow Krause, LLP, an accounting firm. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2019 Baker Tilly Municipal Advisors, LLC EXHIBIT A CITY OF CARMEL REDEVELOPMENT AUTHORITY VERIFICATION OF SUFFICIENCY OF LEASE RENTAL PAYMENTS Lease Rental Bond Allowance Payment Payment Total for Trustee Total Semiannual Ending Date Date Debt Service (1) Misc. Fees (2) Requirements Lease Rental (3) Variance Balance 07/01/19 07/15/19 $861,098.63 $861,098.63 $866,000.00 $4,901.37 $4,901.37 O1/01/20 01/15/20 865,507.35 $2,000.00 867,507.35 866,000.00 (1,507.35) 3,394.02 07/01/20 07/15/20 1,064,091.85 1,064,091.85 1,065,000.00 908.15 4,302.17 O1/01/21 01/15/21 1,060,523.85 2,000.00 1,062,523.85 1,065,000.00 2,476.15 6,778.32 07/01/21 07/15/21 1,051,856.10 1,051,856.10 1,050,000.00 (1,856.10) 4,922.22 01/01/22 01/15/22 1,043,141.10 2,000.00 1,045,141.10 1,050,000.00 4,858.90 9,781.12 07/01/22 07/15/22 984,378.85 984,378.85 985,500.00 1,121.15 10,902.27 O1/01/23 01/15/23 981,141.60 2,000.00 983,141.60 985,500.00 2,358.40 13,260.67 07/01/23 07/15/23 1,026,722.30 1,026,722.30 1,024,500.00 (2,222.30) 11,038.37 O1/01/24 01/15/24 1,016,430.00 2,000.00 1,018,430.00 1,024,500.00 6,070.00 17,108.37 07/01/24 07/15/24 1,000,925.00 1,000,925.00 996,000.00 (4,925.00) 12,183.37 O1/01/25 01/15/25 985,351.75 2,000.00 987,351.75 996,000.00 8,648.25 20,831.62 07/01/25 07/15/25 944,700.50 944,700.50 942,500.00 (2,200.50) 18,631.12 O1/01/26 01/15/26 934,359.50 2,000.00 936,359.50 942,500.00 6,140.50 24,771.62 07/01/26 07/15/26 893,896.25 893,896.25 891,500.00 (2,396.25) 22,375.37 O1/01/27 01/15/27 883,683.25 2,000.00 885,683.25 891,500.00 5,816.75 28,192.12 07/01/27 07/15/27 878,361.75 878,361.75 878,500.00 138.25 28,330.37 01/01/28 01/15/28 872,854.25 2,000.00 874,854.25 878,500.00 3,645.75 31,976.12 07/01/28 07/15/28 1,292,074.50 1,292,074.50 1,288,500.00 (3,574.50) 28,401.62 O1/01/29 01/15/29 1,278,990.00 2,000.00 1,280,990.00 1,288,500.00 7,510.00 35,911.62 07/01/29 07/15/29 1,140,130.00 1,140,130.00 1,132,000.00 (8,130.00) 27,781.62 O1/01/30 01/15/30 1,117,928.75 2,000.00 1,119,928.75 1,132,000.00 12,071.25 39,852.87 07/01/30 07/15/30 1,400,718.75 1,400,718.75 1,394,500.00 (6,218.75) 33,634.12 O1/01/31 01/15/31 1,382,866.25 2,000.00 1,384,866.25 1,394,500.00 9,633.75 43,267.87 07/01/31 07/15/31 1,399,830.00 1,399,830.00 1,395,500.00 (4,330.00) 38,937.87 O1/01/32 01/15/32 1,385,815.00 2,000.00 1,387,815.00 1,395,500.00 7,685.00 46,622.87 07/01/32 07/15/32 691,496.25 691,496.25 690,500.00 (996.25) 45,626.62 O1/01/33 01/15/33 684,087.50 2,000.00 686,087.50 690,500.00 4,412.50 50,039.12 07/01/33 07/15/33 941,483.75 941,483.75 935,500.00 (5,983.75) 44,055.37 O1/01/34 01/15/34 923,682.50 2,000.00 925,682.50 935,500.00 9,817.50 53,872.87 07/01/34 07/15/34 885,772.50 885,772.50 884,500.00 (1,272.50) 52,600.37 01/01/35 01/15/35 878,050.00 2,000.00 880,050.00 884,500.00 4,450.00 57,050.37 Totals $32,751,949.63 $32,000.00 $32,783,949.63 $32,841,000.00 $57,050.37 (1) See Exhibit E. (2) Based on information provided by Huntington Corporate Trust. (3) See Exhibit B. (Subject to the comments in the attached report dated April 9, 2019 of Baker Tilly.) EXHIBIT B CITY OF CARMEL REDEVELOPMENT AUTHORITY SCHEDULE OF LEASE RENTAL PAYMENTS Lease Rental Annual Semiannual Payment Date Lease Rental Lease Rental (1) 07/01 /19 $866,000 01 /01 /20 $1,732,000 866,000 07/01/20 1,065,000 01 /01 /21 2,130,000 1,065,000 07/01 /21 1,050,000 01 /01 /22 2,100,000 1,050,000 07/01 /22 985,500 O1/01/23 1,971,000 985,500 07/01 /23 1,024,500 01 /01 /24 2,049,000 1,024,500 07/01/24 996,000 01 /01 /25 1,992,000 996,000 07/01/25 942,500 01 /01 /26 1,885,000 942,500 07/01 /26 891,500 O1/01/27 1,783,000 891,500 07/01 /27 878,500 O1/01/28 1,757,000 878,500 07/01/28 1,288,500 01/01/29 2,577,000 1,288,500 07/01 /29 1,132,000 01 /01 /30 2,264,000 1,132,000 07/01 /30 1,394,500 O1/01/31 2,789,000 1,394,500 07/01 /31 1,395,500 O1/01/32 2,791,000 1,395,500 07/01 /32 690,500 O1/01/33 1,381,000 690,500 07/01/33 935,500 01/01/34 1,871,000 935,500 07/01 /34 884,500 O1/01/35 1,769,000 884,500 Totals $32,841,000 $32,841,000 (1) Pursuant to the Lease Agreement dated as of October 10, 2017 as amended by the Addendum to Lease Agreement dated December 14, 2017, and as further amended by the Second Addendum to Lease Agreement dated as of April 1, 2019. (Subject to the comments in the attached report dated April 9, 2019 of Baker Tilly.) EXHIBIT C CITY OF CARMEL REDEVELOPMENT AUTHORITY SCHEDULE OF AMORTIZATION OF $16,300,000 PRINCIPAL AMOUNT OF OUTSTANDING TAXABLE LEASE RENTAL BONDS, SERIES 2017C-2 Payment Principal Interest Debt Service Budget Year Date Balance Rates Principal Interest Total Total (--$1,000's--) (%) (--$1,000's--) (-------------------------In Dollars-------------------------) 07/15/19 $16,300 2.100 $250 (1) $257,132.10 $507,132.10 O1/15/20 16,050 2.100 250 (1) 254,507.10 504,507.10 $1,011,639.20 07/15/20 15,800 2.100 455 (1) 251,882.10 706,882.10 O1/15/21 15,345 2.100 455 (1) 247,104.60 702,104.60 1,408,986.70 07/15/21 14,890 2.100 450 (1) 242,327.10 692,327.10 O1/15/22 14,440 2.100 445 (1) 237,602.10 682,602.10 1,374,929.20 07/15/22 13,995 2.100 395 (1) 232,929.60 627,929.60 O1/15/23 13,600 2.648 395 228,782.10 623,782.10 1,251,711.70 07/15/23 13,205 2.698 445 223,552.30 668,552.30 O1/15/24 12,760 2.780 440 217,549.25 657,549.25 1,326,101.55 07/15/24 12,320 2.830 430 211,433.25 641,433.25 01/15/25 11,890 2.900 425 205,348.75 630,348.75 1,271,782.00 07/15/25 11,465 2.950 390 199,186.25 589,186.25 O1/15/26 11,075 3.000 385 193,433.75 578,433.75 1,167,620.00 07/15/26 10,690 3.100 350 187,658.75 537,658.75 O1/15/27 10,340 3.150 345 182,233.75 527,233.75 1,064,892.50 07/15/27 9,995 3.200 345 176,800.00 521,800.00 O05/28 9,650 3.300 345 171,280.00 516,280.00 1,038,080.00 07/15/28 9,305 3.350 770 (2) 165,587.50 935,587.50 01/15/29 8,535 3.350 770 (2) 152,690.00 922,690.00 1,858,277.50 07/15/29 7,765 3.450 645 (3) 139,792.50 784,792.50 O1/15/30 7,120 3.450 635 (3) 128,666.25 763,666.25 1,548,458.75 07/15/30 6,485 3.550 935 (4) 117,712.50 1,052,712.50 01/15/31 5,550 3.550 935 (4) 101,116.25 1,036,116.25 2,088,828.75 07/15/31 4,615 3.600 970 (5) 84,520.00 1,054,520.00 01/15/32 3,645 3.600 970 (5) 67,060.00 1,037,060.00 2,091,580.00 07/15/32 2,675 3.650 285 (6) 49,600.00 334,600.00 O1/15/33 2,390 3.650 285 (6) 44,398.75 329,398.75 663,998.75 07/15/33 2,105 3.700 545 (7) 39,197.50 584,197.50 O1/15/34 1,560 3.700 540 (7) 29,115.00 569,115.00 1,153,312.50 07/15/34 1,020 3.750 510 (8) 19,125.00 529,125.00 O1/15/35 510 3.750 510 (8) 9,562.50 519,562.50 1,048,687.50 Totals $16,300 $5,068,886.60 $21,368,886.60 $21,368,886.60 (1) $2,700,000 remaining portion of Term Bonds due July 15, 2022. (2) $1,540,000 of Term Bonds due January 15, 2029 (3) $1,280,000 of Term Bonds due January 15, 2030. (4) $1,870,000 of Term Bonds due January 15, 2031. (5) $1,940,000 of Term Bonds due January 15, 2032. (6) $570,000 of Term Bonds due January 15, 2033. (7) $1,085,000 of Term Bonds due January 15, 2034. (8) $1,020,000 of Tenn Bonds due January 15, 2035. (Subject to the comments in the attached report dated April 9, 2019 of Baker Tilly.) EXHIBIT D CITY OF CARMEL REDEVELOPMENT AUTHORITY SCHEDULE OF AMORTIZATION OF $8,170,000 PRINCIPAL AMOUNT OF TAXABLE LEASE RENTAL BONDS, SERIES 2019A-2 Bonds dated April 9, 2019. Payment Principal Interest Debt Service Budget Year Date Balance Rates Principal Interest Total Total (--$1,000's--) (%) (--$1,000's--) (-------------------------In Dollars-------------------------) 07/15/19 $8,170 3.99 $260 $93,966.53 $353,966.53 O1/15/20 7,910 3.99 190 171,000.25 361,000.25 $714,966.78 07/15/20 7,720 3.99 190 167,209.75 357,209.75 O1/15/21 7,530 3.99 195 163,419.25 358,419.25 715,629.00 07/15/21 7,335 3.99 200 159,529.00 359,529.00 O1/15/22 7,135 3.99 205 155,539.00 360,539.00 720,068.00 07/15/22 6,930 3.99 205 151,449.25 356,449.25 O1/15/23 6,725 3.99 210 147,359.50 357,359.50 713,808.75 07/15/23 6,515 3.99 215 143,170.00 358,170.00 O1/15/24 6,300 3.99 220 138,880.75 358,880.75 717,050.75 07/15/24 6,080 3.99 225 134,491.75 359,491.75 01/15/25 5,855 3.99 225 130,003.00 355,003.00 714,494.75 07/15/25 5,630 3.99 230 125,514.25 355,514.25 O1/15/26 5,400 3.99 235 120,925.75 355,925.75 711,440.00 07/15/26 5,165 3.99 240 116,237.50 356,237.50 O1/15/27 4,925 3.99 245 111,449.50 356,449.50 712,687.00 07/15/27 4,680 3.99 250 106,561.75 356,561.75 O1/15/28 4,430 3.99 255 101,574.25 356,574.25 713,136.00 07/15/28 4,175 3.99 260 96,487.00 356,487.00 01/15/29 3,915 4.50 265 91,300.00 356,300.00 712,787.00 07/15/29 3,650 4.50 270 85,337.50 355,337.50 O1/15/30 3,380 4.55 275 79,262.50 354,262.50 709,600.00 07/15/30 3,105 4.55 275 73,006.25 348,006.25 O1/15/31 2,830 4.60 280 66,750.00 346,750.00 694,756.25 07/15/31 2,550 4.60 285 60,310.00 345,310.00 O1/15/32 2,265 4.65 295 53,755.00 348,755.00 694,065.00 07/15/32 1,970 4.65 310 46,896.25 356,896.25 O1/15/33 1,660 4.70 315 39,688.75 354,688.75 711,585.00 07/15/33 1,345 4.75 325 32,286.25 357,286.25 O1/15/34 1,020 4.80 330 24,567.50 354,567.50 711,853.75 07/15/34 690 4.80 340 16,647.50 356,647.50 O1115135 350 4.85 350 8,487.50 358,487.50 715,135.00 Totals $8,170 $3,213,063.03 $11,383,063.03 $11,383,063.03 (Subject to the comments in the attached report dated April 9, 2019 of Baker Tilly.) CITY OF CARMEL REDEVELOPMENT AUTHORITY SCHEDULE OF COMBINED AMORTIZATION Payment 2017C-2 Date Bonds 1 07/15/19 $507,132.10 O1/15/20 504,507.10 07/15/20 706,882.10 01 / 15/21 702,104.60 07/15/21 692,327.10 O1/15/22 682,602.10 07/15/22 627,929.60 O1/15/23 623,782.10 07/15/23 668,552.30 O1/15/24 657,549.25 07/15/24 641,433.25 O1/15/25 630,348.75 07/15/25 589,186.25 O1/15/26 578,433.75 07/15/26 537,658.75 O1/15/27 527,233.75 07/15/27 521,800.00 01/15/28 516,280.00 07/15/28 935,587.50 O1/15/29 922,690.00 07/15/29 784,792.50 01/15/30 763,666.25 07/15/30 1,052,712.50 01/15/31 1,036,116.25 07/15/31 1,054,520.00 01 /15/32 1,037,060.00 07/15/32 334,600.00 O1/15/33 329,398.75 07/15/33 584,197.50 01/15/34 569,115.00 07/15/34 529,125.00 O1/15/35 519,562.50 Totals $21,368,886.60 (1) See Exhibit C. (2) See Exhibit D. 2019A-2 Bonds 2 $353,966.53 361,000.25 357,209.75 358,419.25 359,529.00 360,539.00 356,449.25 357,359.50 358,170.00 358,880.75 359,491.75 355,003.00 355,514.25 355,925.75 356,237.50 356,449.50 356,561.75 356,574.25 356,487.00 356,300.00 355,337.50 354,262.50 348,006.25 346,750.00 345,310.00 348,755.00 356,896.25 354,688.75 357,286.25 354,567.50 356,647.50 358,487.50 $11,383,063.03 Total Debt Service $861,098.63 865,507.35 1,064,091.85 1,060,523.85 1,051,856.10 1,043,141.10 984,378.85 981,141.60 1,026,722.30 1,016,430.00 1,000,925.00 985,351.75 944,700.50 934,359.50 893,896.25 883,683.25 878,361.75 872,854.25 1,292,074.50 1,278,990.00 1,140,130.00 1,117,928.75 1,400,718.75 1,382,866.25 1,399,830.00 1,385,815.00 691,496.25 684,087.50 941,483.75 923,682.50 885,772.50 878,050.00 $32,751,949.63 PY14TRTT R Budget Year Total $1,726,605.98 2,124,615.70 2,094,997.20 1,965,520.45 2,043,152.30 1,986,276.75 1,879,060.00 1,777,579.50 1,751,216.00 2,571,064.50 2,258,058.75 2,783,585.00 2,785,645.00 1,375,583.75 1,865,166.25 1,763,822.50 $32,751,949.63 (Subject to the comments in the attached report dated April 9, 2019 of Baker Tilly.)