HomeMy WebLinkAboutD-1771-05 Thomson $25 ml. Bond SPONSOR: Councilor Kirby
ORDINANCE D-1771-05
AN ORDINANCE OF THE COMMON COUNCIL PLEDGING COlT REVENUES TO
BONDS OF THE HAMILTON COUNTY REDEVELOPMENT DISTRICT
WHEREAS, the Hamilton County ("County") Income Tax Council has imposed the
County Option Income Tax under IC 6-3.5-6 CCOIT") at a rate of one percent (1.0%) annually
on the adjusted gross income of City taxpayers;
WHEREAS, pursuant to the Act, the City of Carmel ("City") is a recipient of a
distributive share of the COIT ("COIT Revenues") and receives its COIT Revenues monthly
from the County Auditor;
WHEREAS, the Hamilton County Redevelopment Commission ("Commission")
established the Thomson Consumer Electronics, Inc., Clay Township, Economic Development
Area ("Area") in the City in accordance with IC 36-7-14;
WHEREAS, the Commission has determined to.issue bonds to finance the acquisition
and construction of road improvements in, serving or benefitting the Area ("Project") and such
Bonds will be payable from incremental tax revenues collected in the Area ("Tax Increment")
and, if necessary, from a portion of the COIT Revenues;
WHEREAS, the City has agreed to pledge COIT Revenues in the annual amount of
$650,000 ("Pledged COIT") to the payment of the New Bonds (as defined below) issued to
finance the Project located in the City;
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of
Carmel, Indiana:
Section I. The City, in consideration of the Commission's desire to proceed with the
completion of the Project an_d. with the redevelopment and economic development of the
Area, hereby pledges Pledged COIT to the Commission for the payment of debt service
on its Redevelopment District Tax Increment Revenue Bonds, issued in two or more
series, in the aggregate principal amount not to exceed Twenty Five Million Four
Hundred Thousand Dollars ($25,400,000) ("New Bonds") on a parity with the pledge of
Pledged COIT by the City to the Outstanding COIT Obligations of the City, which are as
follows:
A. Outstanding Twenty-six Million One Hundred Eighty-five Thousand
Dollars ($26,185,000) of Carmel Redevelopment Authority County Option
Income Tax Lease Rental Revenue Refunding Bonds of 2004 under a Lease
dated July 8, 1997, as amended on September 4, 1997, and as further amended
on March 1, 2004, which bonds were originally issued in the amount of
Twenty-seven Million Nine Hundred Eighty-five Thousand Dollars
($27,985,000)
Outstanding Eight Million Four Hundred Thirty Thousand Dollars
($8,430,000) of City of Carmel Redevelopment District Taxable COlT
Revenue Bonds of 1998 which bonds were originally issued in the amount of
Ten Million Five Hundred Thousand Dollars ($10,500,000).
Outstanding Nine Million Eight Hundred Fifty-five Thousand Dollars
($9,855,000) of City of Carmel, Indiana, COIT Revenue Bonds, Series 2002
which bonds were originally issued in the amount ofTen Million Four
Hundred Fifty Thousand Dollars ($10,450,000).
Section II. The City further covenants that it will take no action (including action as
a member of the Hamilton County Income Tax Council) to rescind or repeal COIT
or to take any action that would result in the City receiving a smaller distributive share
of COIT than the.distributive share of COIT to which it was entitled on the effective
date of this ordinance. The City further covenants that it will take no action (including
action as a member of the Hamilton County Income Tax Council) to rescind COIT or
reduce the COlT rate as long as the Bonds are outstanding.
Section III. Except for the Outstanding Obligations listed in Section 1 above, the City
has not pledged or othetwvise encumbered its COIT Revenues, and there are no prior.
liens, encumbrances, or other restrictions on the Pledged COlT or on the City's ability
to pledge Pledged COIT to the Commission.
Section IV. This Ordinance shall be in full force and effect immediately upon its
passage.
Section V: All prior Ordinances or parts thereof inconsistent with any provisions of this
Ordinance are hereby repealed.
Section VI: This Ordinance shall be in full force and effect from and after its passage
and signing by the Mayor.
Passed. by the Common Council of the City of Carmel, Indiana this I ~q' +'~day of
~, ~t~4c 2005, by a vote of ~7 ayes and ~ nays.
COMMON COUNCIL FOR THE CITY OF CARMEL
~j'~Cff~A~F' drick"~. ( ,~
'ro Tempore
J~ypt~t~.~ri£fiths
/ATTEST:
Roff'ald E. Caner
Richard L.'Sl~a~p'
Diana L. er
Presented by me to the Mayor of the City of Carmel, Indiana this [~ day of 2005,
at ~;tO ~ .M.
· ' Cordra
APproVed by me, Mayor o£ the City of Cannel, iDa~l ami. ih~s Yd'a~Ao~C~~ ilr0
Ind 5,[~
at 4:10 ~0 .M.
ATTEST: _ ~
Diana L. cordray, IAMC, Clerk-Treas,,
Prepared by:
Michael A. Howard
Howard & Associates
694 Logan Street
Noblesville, IN 46060
(317) 773.4212