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HomeMy WebLinkAboutResolution 2021-17 (CMCDC mortgage payoff)RESOLUTION NO.2021-17 A RESOLUTION OF THE CITY OF CARMEL REDEVELOPMENT COMMISSION REGARDING GRANT TO CMCDC FOR PURPOSE OF PAYING OFF MORTGAGE LOAN WHEREAS, the City of Carmel, Indiana (the "City") is an Indiana municipal corporation; and WHEREAS, the City of Carmel Redevelopment Commission (the "CRC") is a governmental entity created and authorized to administer certain redevelopment activities within the City; and WHEREAS, pursuant to Indiana Code 36-7-14-12.2(25), CRC may provide financial assistance (including grants and loans) to neighborhood development corporations to permit them to "construct, rehabilitate, or repair commercial property within the district"; and WHEREAS, Carmel Midtown Community Development Corporation ("CMCDC") is a nonprofit corporation organized and operating pursuant to the provisions of the Indiana Nonprofit Act of 1991, as amended, Indiana Code 23-17; and WHEREAS, CMCDC is a "neighborhood development corporation" for purposes of Indiana Code 36-7-14-12.2(25); and WHEREAS, CMCDC owns that certain real estate commonly known as 620 S. Rangeline Road (the "CMCDC Real Estate"); and WHEREAS, CMCDC obtained a mortgage loan against the CMCDC Real Estate from United Fidelity Bank, fsb in the original principal amount of $2,500,000.00 (the "Loan"); and WHEREAS, CMCDC used the proceeds of the Loan to construct, rehabilitate, and/or repair commercial properties within or near the Carmel City Center; and WHEREAS, the Carmel City Center is within the "district" for purposes of Indiana Code 36-7-14-12.2(25); and WHEREAS, to assist CMCDC in obtaining the Loan, the CRC entered into a grant agreement with CMCDC (the "Grant Agreement"), pursuant to which Grant Agreement CRC has agreed to grant to CMCDC any portion of the debt service payments on the Loan as and when due to the extent other funds available to CMCDC are insufficient to make such debt service payments; and WHEREAS, the CRC's obligations under the Grant Agreement include, among other things, paying off the Loan in full at maturity; and WHEREAS, the CRC has determined that it is now in the best interests of the CRC to: (a) grant to CMCDC an amount not to exceed the principal amount of the Loan (the "Grant") for purposes of paying off the Loan in full; and (b) otherwise assist CMCDC in paying off the Loan; all as authorized by Indiana Code 3 6-7-14-12.2 and other applicable law. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City of Carmel Redevelopment Commission that: 1. The foregoing Recitals are fully incorporated herein by this reference. 2. The CRC will grant to CMCDC the Grant for purposes of paying off the Loan in full, which Grant shall occur prior to the maturity of the Loan at a time and in a manner designated by the Executive Director of the CRC. 3. The CRC will execute and delivery such other agreements, instruments, certificates, and other documents, and perform and observe such other actions, covenants, and obligations, as necessary or desirable in connection with the Grant and/or CMCDC's paying off the Loan. 4. Each agreement, instrument, certificate, and other document contemplated by this Resolution to be executed and delivered by the CRC shall be in a form approved by, and satisfactory to, the President and Executive Director of the CRC, with guidance from the CRC Finance Committee, which approval and satisfaction shall be conclusively evidenced by the execution and delivery thereof by the President, Vice President, Secretary, and/or Executive Director of the CRC. 5. The President and Executive Director of the CRC are authorized to execute and deliver all of the agreements, instruments, certificates, and other documents contemplated by this Resolution to be executed and delivered by the CRC. In the absence of the President and/or Executive Director, the Vice President and/or Secretary of the CRC shall be authorized to execute and deliver all of the agreements, instruments, certificates, and other documents contemplated by this Resolution to be executed and delivered by the CRC. The President, Executive Director, Vice President, and/or Secretary are further authorized take all other lawful actions necessary in connection with the Grant and the other matters contemplated by this Resolution. Adopted this 18th day of August, 2021. CITY OF CARMEL REDEVELOPMENT COMMISSION President