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HomeMy WebLinkAboutD-1770-05 Thomson TIF SPONSOR: Councilor Kirby ORDINANCE D-1770-05 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL AUTHORIZING THE USE OF TAX INCREMENT AND THE ISSUANCE OF BONDS PURSUANT TO INDIANA CODE 36-7-14-3.5 WHEREAS, the Hamilton County Redevelopment Commission ("Commission") on the 17th day of April, 1990, passed a Declaratory Resolution No. 4-17-90, which established the Thomson Consumer Electronics, Inc., Clay Township, Economic Development Area ("the Area"); and, WHEREAS, the Commission, acting on behalf of Hamilton County, Indiana, ("the County'), subsequently issued its Redevelopment District Tax Increment Revenue Bonds of 1991 dated December 1, I991, ("the 1991 Bonds"); and, WHEREAS, the 1991 Bonds were subsequently refunded by' the Commission through issuance of its Redevelopment District Tax Increment Refunding Revenue Bonds of 2002 dated February 21,2002, ("the d Refunding Bons j; and, WHEREAS, the final principal and interest payment on the Refunding Bonds will be paid on February 1, 2008, from tax increment collected in November of 2007; and, WHEREAS, since the time of the issuance of the 1991 Bonds, the City of Carmel ("the City") has mmexed all of the real estate within the Area; and, WHEREAS, Indiana Code 36-7-14-3.5, provides that after the final date of an annexation by a municipality, a County redevelopment commission may not issue bonds or use the proceeds from allocated property tax proceeds from an allocation area unless the legislative body of the municipality adopts an ordinance permitting the issuance of bonds and use of the allocated property tax proceeds from the allocation area; and, WHEREAS, Indiana Code 36-7-14-39 (b)(2), provides that tax increment collected from an allocation area may be used to pay principal and interest on an obligation of the Commission; a~ld, WHEREAS, the City is desirous of entering into an Agreement with the County acting on behalf of the Commission to issue the Commission's 2005 Bonds in an amount not to exceed Six Million Five Hundred Thousand Dollars ($6,500,000), the proceeds of which will be used to refund the Refunding Bonds and pay the costs of the design of Illinois Street from 111th Street to 116th Street; land acquisition for the extension of Illinois Street north from Clarian Hospital to 126th Street for the benefit of the City; and to redeem the Commission's Refunding Bonds (the "2005 Costs"), which Costs meet the requirements of Indiana Code 36-7-14-25.1, and include the cost of right of way and design of public infrastructure, plus all reasonable legal, accounting, advertising, bond discount, and other expenses which are normally associated with the issuance of municipal bonds and to find a debt service reserve. WHEREAS, the City is desirous of entering into an Agreement with the County acting on behalf of the Commission to issue the Commission's 2006 Bonds in an amount not to exceed Nineteen Million Eight Hundred Thousand Dollars ($19,800,000), the proceeds of which will be used to pay the costs of land acquisition for the extension of Illinois Street north from 126th Street to 136th Street, and construction and construction inspection for Illinois Street from Clarion Hospital to 136th Street, for the benefit of the City, ("the 2006 Projects"), which Projects meet the requirements of Indiana Code 36-7-14-25.1, and include the cost of right of way, and construction of public infrastructure, plus all reasonable legal, accounting, advertising, bond discount, capitalized interest, and other expenses which are normally associated with the issuance of municipal bonds and to fund a debt service reserve. IT IS THEREBY ORDAINED by the Common Council of the City of Carmel as follows: Section I: Pursuant to Indiana Code 36-7-14-3.5, the City consents to the Hamilton County Redevelopment Commission issuing its Redevelopment District Tax Increment Revenue Bonds of 2005 in an amount not to exceed Six Million Five Hundred Thousand Dollars ($6,500,000), (the "2005 Bonds") and its Redevelopment District Tax Increment Revenue Bonds of 2006 in an amount of Nineteen Million Eight Hundred Thousand Dollars ($19,800,000), (the "2006 Bonds"), all of which are collectively referred to as "the New Bonds". The proceeds of the New Bonds shall be used for those purposes defined in Indiana Code 36-7-14-25.1 as set out above. Section II: This Ordinance ratifies and approves the Interlocal Agreement ("Interlocal Agreement"), dated as of August 15, 2005, between the City and the County and all of the terms of the Interlocal Agreement shall be conditions of the consent of the City to the issuance of the New Bonds. Section III: The City further consents to the Commission using any tax increment from the Area over and above the amount necessary to pay the principal and interest on the New Bonds, or any subsequent refunding bonds issued to redeem the New Bonds, to first reimburse the City for any Guarantee Payments as defined in the Interlocal Agreement, and, secondly, for any other purpose permitted by 36-7-14-25.1. Section IV: All prior Ordinances or parts thereof inconsistent with any provisions of this Ordinance are hereby repealed. Section V: This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. /~ Passe.d by the Common Council of the City of Carmel, Indiana this ~,~ day of 2005, by a vote of '-/ ayes and O nays. COMMON COUNCIL FOR THE CITY OF CARMEL P~/~iding O!,ficer ~ ~,/ Rona, J~ E. Carter Kevin~t Pro'~emj~ore ~.A°;~ F~ sCT :/~riffiths // ~ , O-J MC Cle Treasurer Diana L. Cordray, ~AMC,~Cle Presented by me to the Mayor of the City of Carmel, Indiana this ]~day of ~ 2005, at ~:l~ P.M. Di~a L. Cordray, IAMC, Clerk-Treas~ Approved by me, Mayor of~e City of Carmel, Indiana, this [~day of ~ ~005, at ~.'10 ~.M. ~ ATTEST: J~ Brainard, Mayor IAMC C~leri Tread e Diana L. Cordra~,, , ~ Prepared by: Michael A, Howard Howard & Associates 694 Logan Street Noblesville, IN 46060 (317) 773~4212 ayo Mark ~~ Richard L. Sharp AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF CARMEL AND HAMILTON COUNTY CONCERNING THE ISSUANCE OF BONDS AND PAYMENT OF EXPENSES FROM THE THOMSON CONSUMER ELECTRONICS, INC., CLAY TOWNSHIP ECONOMIC DEVELOPMENT AREA Document Cross Reference No. 9133525 This Interlocal Agreement entered into as of August 15, 2005, by and between the Board · of Commissioners of Hamilton County, acting on behalf of Hamilton County, Indiana, {"the County"), the Hamilton County Council ("the Council") and the City of Carmel ("the City"). WHEREAS, the Hamilton County Redevelopment Commission ("Commission") on the 17'h day of April, 1990, passed a Declaratory Resolution No. 4-17-90, which established the Thomson Consumer Electronics, Inc., Clay Township, Economic Development Area ("the Area"); and WHEREAS, the Commission, acting on behalf of Hamilton County, Indiana, ("the County"), subsequently issued its Redevelopment District Tax Increment Revenue Bonds of 1991 dated December 1, 1991, ("the 1991 Bonds"); and, WHEREAS, the 1991 Bonds were subsequently refunded by the Commission through issuance of its Redevelopment District Tax Increment Refunding Revenue Bonds of 2002 dated February 21, 2002, ("the Refunding Bonds"); and, WHEREAS; the final principal and interest payment on ~he Refunding Bonds will be paid on February 1, 2008, from tax increment collected from the Area in November of 2007; and, WHEREAS, since the time of the issuance of the 1991 Bonds, the City has annexed all of the real estate within the Area; and, WHEREAS, Indiana Code 36-7-14-3.5, provides that after the final date of an annexation by a municipality, a County redevelopment commission may not issue bonds or use the proceeds from allocated property tax proceeds from an allocation area unless the legislative body of the municipality adopts an ordinance permitting the issuance of bonds and use of the allocated property tax proceeds from the allocation area; and, WHEREAS, the City is desirous of entering into an Agreement with the County acting on behalf of the Commission to issue the Commission's 2005 Bonds in an amount not to exceed Six Million Five Hundred Thousand Dollars ($6,500,000), the proceeds of which will be used to refund the Refunding Bonds and pay the costs of land acquisition for the extension of Illinois Street north from Cladan Hospital to 126~h Street and design costs for part of Illinois Street for the benefit of the City ("the 2005 Costs"), .which Costs meet the requirements of Indiana Code 36-7-14-25.1, and include the cost of right of way and design of public infrastructure, plus all reasonable legal, accounting, advertising, bond discount, and other expenseswhich are normally associated with the issuance of municipal bonds, and to fund a debt service reserve. WHEREAS, the City is desirous of entering into an Agreement with the County acting on behalf of the Commission to issue the Commission's 2006 Bonds in an amount not to exceed Nineteen Million Eight Hundred Thousand Dollars ($19,800,000), the proceeds of which will be used to pay the costs of land acquisition for the extension of illinois Street north from 126'h Street to 136t" Street; to pay the construction of illinois Street from Clarion Hospital north to 136th Street and to construct the 3~ Avenue S.W. and 4~ Avenue S.W. realignment project; all for the benefit of the City ("the 2006 Projects"), which Projects meet the requirements of Indiana Code 36-7-14-25.1, and include the cost of right of way and design of public infrastructure, plus all reasonable legal, accounting, advertising, bond discount, capitalized interest, and other expenses which are normally associated with the issuance of municipal bonds and to fund a debt service reserve; and, WHEREAS, the County and the Commission have designated part of the tax increment collected from the Area in collection years 2005, 2006, and 2007 to be used for public projects benefitting the Area. IT IS THEREBY AGREED by and between the County and the City as follows: Section I: The County agrees to initiate all procedures necessary for the Commission to issue its 2005 Redevelopment District Tax Increment Revenue Bonds ("the 2005 Bonds") in an amount no greater than Six Million Five Hundred Thousand Dollars ($6,500,000) which shall be paid from semi-annual bond payments not to exceed Two Hundred Thousand Dollars ($200,000) from February 2006 through February 2030. The County agrees to initiate all procedures necessary for the Commission to issue its 2006 Redevelopment District Tax Increment Revenue Bonds ("the 2006 Bonds") in an amount no greater than Nineteen Million Eight Hundred Thousand Dollars ($19,800,000) which shall be paid from semi-annual bond payments not to exceed Seven Hundred TwentyThousand Dollars ($720,000)from August 2006 through February 2030, and Nine Hundred Fifteen Thousand Dollars ($915,000) on August 2030 and February of 2031. The proceedsoftheNewBondsshallbeusedtofundtheproject budgetin ExhibitA. AIItax increment collected from the Area after 2005 shall be irrevocably pledged to be used for payments toward the New Bonds. Section I1: The 2005 Bonds shall be issued in October of 2005, and the 2006 Bonds shall be issued in March of 2006. Section II1: The proceeds of the 2005 Bonds to be issued by the Commission shall be held by the County Auditor and used to redeem the Refunding Bonds and to pay the costs of the Projects as defined by the City, which Projects are listed on Exhibit A. Those costs shall include all applicable expenses as set out in Indiana Code 36-7-14-25.1(a). Section iV: The City has pledged to the Commission in Ordinance No. D-1771-05 the amount of Six Hundred Fifty Thousand Dollars ($650,000) per year of the City's distributive share of County Option Income Tax to cover any difference between the scheduled principal and interest on the New Bonds and the semi-annual tax increment collected from the Area ("the Guarantee Payments"), pursuant to Ordinance D-1771-05. The pledge shal~ be irrevocable until February of 2031 or until the New Bonds or any refunding bonds used to redeem the New Bonds, are paid in fu~L Any Guarantee Payments shall be made at least two business days prior to the payment date of the New Bonds to the County Auditor or to the Trustee for the New Bonds and applied to the payment of the New Bonds. Sectio~ ¥: The c~aims for payment of costs to be paid from the proceeds of the New Bonds shall be approved by both a representative of the City as designated by the Mayor and City Council, and an officer of the Hamilton County Redevelopment Commission after recommendation by the appropriate construction manager or project engineer designated by the City. Section VI: The City shall select such engineers, and design professionals, as are necessary to design and inspect the construction of the Projects. The City shall be responsible for receiving bids and awarding the contracts for the design, inspection, and construction of the Projects. Section VII. The parties agree that in the event that it is determined that there will be financial benefit to the refunding, orthe advance refunding, of the New Bonds, the parties shall take all steps necessary to realize the savings by refunding the New Bonds. However, any such refunding of the New Bonds shall not cause the debt service payments to be increased above, or extended beyond, the terms of the New Bonds. Sectiort VIII. In the event there are any disputes arising under this Agreement, those disputes shall initially be discussed in a settlement conference to be he~d among the following: one (1) member of the City Council; the Mayor; the City Attorney; two (2) members of the Board of Commissioners; and the County Attorney. If there is no resolution of the dispute at the settlement conference, the dispute shall be submitted to mediation, pursuant to the Rules of Alternative Dispute Resolution prior to initiating litigation. In the event that the parties cannot agree on an acceptable mediator, a mediator shall be appointed by the Judge of the Circuit Court of Hamilton County. Section IX. The parties agree to take ali steps necessary to implement the terms and conditions of this Agreement, including recommendations to the Hamilton County Redevelopment Commission, to pass such resolutions and ordinances as are necessary to issue the New Bonds and to implement the terms and conditions of this Agreement. ALL OF WHICH IS AGREED by and between the City of Carmel, the Board of Commissioners of Hamilton County, and the Hamilton County Council, on the date§ set out herein. Adopted this/¢~day of August, 2005. COMMON COUNCIL FOR THE CITY OF CARMEL, INDIANA Diana [. Cordray, IAMC, Clerk-Trff/a~urer ,RO"nald E. Carter Richard F. ~rmann.~. j 3harP THOMSON TIF DISTRICT PROJECT BUDGET 2005 SERIES ROW Acquisition Illinois Street from Ciarian to 126th Street $ 3,313,500 Design Costs Illinois Street to 126th Street 286,500 TOTAL $ 3,600,000 2006 SERIES ROW Acquisition Illinois Street from 126th Street to 136th Street $ 1,740,000 COnstruction & Construction Inspection Illinois Street Cladan to 136th Street 11,099,412 3rd Avenue Southwest and 4th Avenue Southwest Realignment 2,400,000 4. Contingency $ 260,588 TOTAL $15,500,000 EXHIBIT A Date: BOARD OF COMMISSIONERS OF Steven'C. Dillinger ~ Steven~A.-Hott ATTEST: Robin M. Mills, Auditor This Intedocal Agreement ratified and approved by the ~amilton County Council this day of ~t, 2o0~., HAMILTON COUNTY COUNCIL (~-/~ U dit h Levinu,~~/ ATTEST: Robin M. Mills, Auditor Prepared by: Michael A. Howard Howard & Associates 694 Logan Street Noblesville, IN 46060 (317) 773-4212