HomeMy WebLinkAboutCC-12-21-20-04/Approval of $25M in TIF BondsVERSION A – 05/03/2021
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Sponsors: Councilors Kimball,
Rider and Worrell
RESOLUTION CC-12-21-20-04
AS AMENDED
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY
OF CARMEL, INDIANA, APPROVING THE ISSUANCE OF BONDS
OF THE CITY OF CARMEL REDEVELOPMENT DISTRICT
Synopsis:
This resolution approves redevelopment district bonds in an amount not to exceed $25,000,000
to finance various redevelopment projects in the City. The bonds will be payable from tax
increment (TIF) generated in the various TIF allocation areas identified in the Amended &
Restated Revenue Deposit Agreement between the City and the CRC, with a back-up pledge of
the special benefits tax for credit enhancement purposes.
WHEREAS, the City of Carmel Redevelopment Commission (the “Commission”), as
the governing body for City of Carmel Redevelopment District (the “District”), pursuant to
Indiana Code 36-7-14, as amended (the “Act), is proposing to issue bonds of the District, in one
or more series, subject to the terms contained herein (the “Bonds”), for the purpose of providing
funds to pay for the costs of the projects described on Exhibit A to this Resolution (the
“Projects”), together with costs incurred on account of the issuance of and in connection with the
issuance and sale of the Bonds; and
WHEREAS, the Common Council of the City (the “Common Council”) now desires to
approve the issuance of the Bonds as required under Indiana Code 6-1.1-17-20.5 and Indiana
Code 36-7-14-25.1(c) and (p); and
WHEREAS, the Commission has previously created certain “allocation areas” in order
to capture property tax proceeds derived from incremental assessed valuation of real and certain
depreciable personal property in such allocation areas which is in excess of the “base assessed
value” (such property tax proceeds hereinafter referred to as “TIF Revenue”), all pursuant to and
as described Indiana Code 36-7-14-39 and Indiana Code 36-7-14-39.3; and
WHEREAS, the Commission has previously incurred certain obligations in order to
finance certain improvements located in, or serving or benefitting, one or more of such allocation
areas, and the Commission reasonably expects to repay such obligations from TIF Revenue to be
received from such allocation areas; and
WHEREAS, the City and the Commission have previously executed the Amended and
Restated Revenue Deposit Agreement, dated as of October 7, 2020 (the “Existing Revenue
Deposit Agreement”), in order to establish a procedure for setting aside the TIF Revenue, as and
when received, for the purpose of ensuring the timely payment of such obligations as the same
shall become due in accordance with their respective terms; and
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WHEREAS, a need exists to (a) incorporate the Bonds into the Existing Revenue
Deposit Agreement, and (b) revise the requirements for the Supplemental Reserve Fund (as
defined therein) (clauses (a) and (b), the “2021 Amendments”); and
WHEREAS, the Common Council now desires to authorize and approve a new
Amended and Restated Revenue Deposit Agreement, in the form presented at this meeting (the
“New Revenue Deposit Agreement”).
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF
THE CITY OF CARMEL, INDIANA, that:
Section 1. The Common Council hereby approves of the issuance of the Bonds of the
District, in one or more series, for the purpose of providing funds to finance the Projects,
pursuant to Indiana Code 6-1.1-17-20.5 and Indiana Code 36-7-14-25.1(c) and (p), upon the
following conditions: (a) the maximum aggregate original principal amount of the Bonds shall
not exceed $25,000,000; (b) the maximum term of the Bonds shall not exceed twenty (20) years;
(c) the maximum interest rate on the Bonds shall not exceed seven percent (7.00%) per annum,
which shall be at a taxable or tax-exempt rate for federal income tax purposes as determined
upon the advice of bond counsel prior to the sale of the Bonds; (d) the Bonds may be subject to
redemption prior to maturity on any date not earlier than eight (8) years following the date of
issuance of the Bonds, with such specific dates and redemption terms determined at the time of
the sale of the Bonds and approved by the Commission in the purchase agreement for the Bonds,
all upon the advice of the municipal advisor to the Commission; (e) there shall be no capitalized
interest provided for the Bonds; (f) the acquisition of any parcel or parcels of real property with
the proceeds of the Bonds shall be subject to the procedures set forth in Exhibit B hereto; (g) no
proceeds of the Bonds shall be spent on electronic information kiosks; and (h) no Bond proceeds
shall be spent on the Midtown light projection display project without the prior approval of the
Common Council.
Section 2. The Bonds shall be, as to both principal thereof and interest thereon,
obligations of the District, as a special taxing district, payable from special ad valorem property
taxes on all taxable property within the District pursuant to Section 27 of the Act to the extent
TIF Revenue or other revenues available to the Commission are not sufficient for such purpose.
Section 3. The Common Council hereby authorizes and approves the New Revenue
Deposit Agreement in order to make the 2021 Amendments. The Mayor is hereby authorized to
execute the New Revenue Deposit Agreement on behalf of the City, subject to the Commission’s
adoption of a similar resolution authorizing and approving the New Revenue Deposit Agreement
prior to the execution thereof.
Section 4. Each of the Mayor, any member of the Common Council, the Clerk and
the Controller is hereby authorized and directed, for and on behalf of the City, to execute and
deliver execute all such instruments, documents or certificates 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 instruments,
documents or certificates or such taking of such action by such officer.
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Section 5. This Resolution shall be in full force and effect from and after its passage
by the Common Council and approval by the Mayor as required by law.
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PASSED by the Common Council of the City of Carmel, this _____ day of _____________,
2021, by a vote of ______ ayes and _____ nays.
COMMON COUNCIL FOR THE CITY OF CARMEL, INDIANA
___________________________________
Sue Finkam, President Kevin D. Rider, Vice-President
___________________________________ ____________________________________
Laura Campbell H. Bruce Kimball
___________________________________ ____________________________________
Jeff Worrell Anthony Green
___________________________________ ___________________________________
Adam Aasen Tim Hannon
___________________________________
Miles Neslon
ATTEST:
__________________________________
Sue Wolfgang, Clerk
Presented by me to the Mayor of the City of Carmel, Indiana this ____ day of
_________________________ 2021, at _______ __.M.
____________________________________
Sue Wolfgang, Clerk
Approved by me, Mayor of the City of Carmel, Indiana, this _____ day of
________________________ 2021, at _______ __.M.
____________________________________
James Brainard, Mayor
ATTEST:
___________________________________
Sue Wolfgang, Clerk
Prepared by: Bruce D. Donaldson
Barnes & Thornburg LLP
11 South Meridian Street
Indianapolis, IN 46204
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May P
3rd
4:45
Opposed
13th
4:00
May
Opposed
Opposed Not Present
PMay
5
13th
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DMS 18598428.3
EXHIBIT A 1
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DESCRIPTION OF THE PROJECTS 3
Carmel Clay Township-led projects, including Historical Society $ 2,500,000
Midtown light display $ 1,500,000
The Center for the Preforming Arts – Signage $ 225,000
Tarkington Garage improvements $ 720,000
Sophia Square Garage improvements $ 200,000
Multiple Roundabout improvements along 96th Street $ 2,500,000
Zotec Ave and Illinois Street roundabout improvement $ 250,000
Miscellaneous other roundabout improvements $ 1,000,000
Land Acquisition $ 13,690,000
Total: $ 22,585,000
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EXHIBIT B 6
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REAL PROPERTY ACQUISITION PROCEDURES 8
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1. Whenever the Carmel Redevelopment Commission (“CRC”) seeks to spend 10
proceeds of the Bonds to acquire and/or develop any parcel or parcels of real property in 11
furtherance of the project description set forth in Exhibit A hereto, for a total cost that exceeds 12
$49,999 (each, a “CRC Decision”), the CRC shall immediately provide notice of the CRC 13
Decision to the Clerk of the City, who shall then place the CRC Decision on the agenda for the 14
next meeting of the Common Council. 15
2. The Common Council shall have the right to review and approve, reject or modify 16
the CRC Decision. 17
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