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HomeMy WebLinkAboutCRC-11-2004:RESOLUTION"NO. /l -6G .A PREI.IMINAR'Y:BOND RESOLUTION OF THE CITY OF CARMEL REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF TAX INCREMEN'TREVENUE'BONDS OF THE' REDEVELOPMENT DISTRICT OF THE CITY OF. CARMEL, INDIANA, FORTH F, PURPOSE OF-PROCURiNG`,FUNDS' FOR. PROPERTY ACQUISIT] ON,_REDEVELOPMENT. 'AND ECONOMIC DEVELOPMENT IN OR SERVING THE ILLINOIS STREET ECONOMIC DEVELOPMENT ARYi-A WHEREAS; on February 28; 2002, the City of Cannel Red"eveiopmciit"Conzmission (the- "Commission") approved and adopted :its i csolittion No: 2-2002 (the. "Original Declaratory Resolution") designati g and declaring'an,arq. known, as. the "North Illinois Street Economic. Development Area" (the "Original Area") to be an economic develc-pment area within the r- meaning. of Indiana Cgde 36-7=14, as amended (the_ "Act"), designating the Original' Area as an allocation area (the "Original Allocation Area")'u'nder "Section 34 of the Act, and approving an economic,dcvelopment•plan for the Original Area (the "Original Plan"); and WHEREAS, on August I3, 2,003, the Commission approved and adoptedits Resolution No. 5=2003 (the "2003 Amei dment, Resoltthen") expanding the Original. Area 4o include an additional area (the "C210 Area") and approving,an;amendment to the Origitial,Plan (the "C210 Plan Amendment") (the- Original 'Plan, as amended by the C210 Plan Amendment; shall hereinaftenbe referred-to as,the "Amended Original Plan"),, and WILERIAS, on February 10,`2004,tthe,Commission approved and adopted its Resolution ,No. 6-2004; (the, "2004 Amendment Resolution"".) (the Original Declaratory Resolution, as amended by the 2003 Amendment Resolution and the .2004 Amendment Resolution„ shall hereinafter be Ceferred lo-.,as,the "Declaratory Resolution'.'), which (a) expanded the 06ginal Area (as previously expanded' to include an additional area (the "2004 Expansion Area") and re- desiguated the Original Area, as expanded by the C2W Area and ihc'2004 Expansion _Area, is the "-Iliinois Street Economic. D'evelopmerit Area (as so expanded, the "-Area"), (6) designated the 2004' ,Expansion Area as an 'allocation area (the "2004 Expansion.Allocation Area".) tinder Section 34,,of'the Act, incorporated the 2004:Expansion Allocation Area as part of the Original Allocation Area; 'anti re-designated the Original Allocation Area, as expanded by the 2004 Expansion Allocation Area, as, the "Illinois Street Allocation Area"' ('as so expanded, the "All"ocation Area"); and (c) approyedof?the:incoiporation,ofthe Amended Original. Plan. into a 2004 Integrated Economic Development Plan & Anended Redevelopment ,Plan (the "20, 04 lutegrated Plan") and approved of the amendments to the Amended On'ginal Plan-asset forth in the 2004 Integrated Pian (flip Anrendod Original'Plan and the•20041ntegrated Plan, collectively, the "Plan"); and WHEREAS; subject to the completion of the required; procedures for the establishment and'expnnsion of the .Area, the CotnmiWon"desires for the Area to be developed for.,such uses in order to.s_erve the"needs of the City of Carmel. Indiana, (the "City") and in order, to,produce.. increased tax revenues foil the various taxing districts a}rthorized to, levy taxes within the. Area;. and WHEREAS, the Commission finds that in order to provide funds for the payment of the cost of the property acquisition, redevelopment and economic development in or serving the Area, it will be necessary and in the best interest of the Redevelopment District of the City of Cannel, Indiana (the "District"), and the property and inhabitants thereof, to issue bonds of the District, in an aggregate principal amount not to exceed Nine Million Five Hundred Thousand Dollars ($9,500,000), which shall be payable solely from taxes on certain real property located in the Allocation Area allocated and deposited. in the allocation fund established for the Allocation Area (the "Allocation Fund") created by the Declaratory Resolution pursuant to Indiana Code 36=7-14-39 and proceeds from the sale or leasing of property in the Allocation Area under Indiana Code 36-7-14-22 deposited in the Allocation Fund as required by Indiana Code 36-7-14-26 pursuant to the Act (collectively, the "Tax Increment"), subject to such limitations on the pledge of Tax increment as may be provided in the Final Bond Resolution to be adopted by the Commission (or, to the extent that, in any year, the Tax Increment available for repayment of principal of and interest on such bonds is insufficient for such repayment, then from funds received from Clarian Health Partners, Inc. (the "Company") pursuant to a limited guaranty agreement to be entered into by the Company (the "Guaranty") up to a maximum guaranteed amount of One Million One Hundred Thousand Dollars ($1,300,000) per year); NOW, THEREFORE, BE IT RESOLVED by the City of Cannel Redevelopment Commission as follows: 1. The Commission shall proceed to undertake the property acquisition, redevelopment and economic development in or serving the Allocation Area in accordance with the Declaratory Resolution and the Plan. For the purpose of procuring funds to pay for the cost of property acquisition, redevelopment and economic development in or serving the Allocation Area (including, in particular, the acquisition and construction of certain street and intersection improvements in or serving the Allocation Area (the "Project")), together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the acquisition, redevelopment and economic development of the property in or serving the Allocation Area, including the total cost of all land, rights-of-way and other property to be acquired, redeveloped and economically developed, all reasonable and necessary architectural, engineering; legal, financing, accounting, advertising, bond discount and supervisory expenses related to the acquisition, redevelopment and economic development of the property or the issuance of the bonds described herein, capitalized interest as permitted by the Act and a debt service reserve for the bonds to the extent that the Commission determines that a reserve is reasonably required, and expenses that the Commission may be required or permitted to pay as "relocation assistance under Indiana Code 5-23-17, together with the expenses in connection with or on account of the issuance of bonds therefor, all in or serving and with respect to the Area that has been found and declared to be an economic development area by the Commission pursuant to the Declaratory Resolution, the City, acting for and on behalf of the District, shall make a loan in an amount not to exceed Nine Million Five Hundred Thousand Dollars ($9,500,000). In order to procure funds for said loan, the Clerk-Treasurer of the City is hereby authorized and directed to have prepared and to issue and sell the negotiable 'bonds of the District, in one or more series or'issues, the principal of and interest on which are payable solely from the Tax Increment, subject to such limitations on the pledge of Tax increment as may be provided in the Final Bond Resolution to be adopted by the Commission (or, to the extent that, in ININIANI 7258200 -2- any year, the Tax increment available for repayment of principal of and interest on such bonds is insufficient for such repayment, then from funds received from the Company pursuant to the Guaranty up to a maximum guaranteed amount of One Million One Hundred Thousand, Dollars ($1,100,000) per year), which bonds shall be issued in the name of the City, for and on behalf of the District, in an aggregate principal amount not to exceed Nine Million Five Hundred Thousand Dollars ($9,500,000) (the 'Bonds"), with a discount not to exceed the discount set forth in or determined by the Final Bond Resolution to be adopted by the Commission, and which amount (together with investment earnings thereon in the approximate amount of Forty Thousand Dollars ($40,000)) does not exceed the cost of property acquisition, redevelopment and economic development in or serving the Allocation Area (including, without limitation, the Project), together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the acquisition, redevelopment and economic development of the property in or serving the Allocation Area, including the total cost of all land, rights-of-way and other property to be acquired, redeveloped and economically developed, all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount and supervisory expenses related to the acquisition, redevelopment and economic development of the property or the issuance of the Bonds, capitalized interest as permitted by the Act and a debt service reserve for the Bonds to the extent that the Commission determines that a reserve is reasonably required, and expenses that the Commission may be required or permitted to pay as "relocation assistance" under Indiana Code 8-23-17, together with the expenses in connection with or on account of the issuance of the Bonds, which estimated cost shall not exceed Nine Million Five Hundred Thousand Dollars (59;500,000), plus investment earnings thereon in the approximate amount of Forty Thousand Dollars (540,000), all of which will be provided from the proceeds of the Bonds, plus investment earnings thereon. The Bonds shall not constitute a corporate obligation or indebtedness of the City but shall constitute an obligation of the District. The Bonds, together with interest thereon, shall be payable solely out of the Tax increment, subject to such limitations on the pledge of Tax Increment as may be provided in the Final Bond Resolution to be adopted by the Commission (or, to the extent.that, in any year, the Tax Increment available for repayment of principal of and interest on the Bonds is insufficient for such repayment, then from funds received from the Company pursuant to the Guaranty up to a maximum guaranteed amount of One Million One Hundred Thousand Dollars ($1,100,000) per year). The Bonds shall mature and be payable no later than February 1, 2025. The Bonds may be subject to redemption prior to maturity in whole or in part in accordance with the terms set forth in the Final Bond Resolution to be adopted by the Commission. 2. The Commission hereby authorizes the publication in accordance with Indiana law of a.notice of public hearing regarding the proposed additional appropriation of the proceeds of the Bonds. 3. The President and the Secretary of the Commission shall certify a copy of this Resolution to the Clerk-Treasurer of the City. 4. This Resolution shall be in full force and effect after its adoption by the Commission. -3- INIMANI 7253200 ADOPTED AND APPROVED at a meeting of the City of Carmel Redevelopment Commission held on the 13 day of March, 2004. CITY OF CARMEL REDEVELOPMENT COMMISSION CI-3' Preside Vice President Secretary mntissioneT ATTEST: Commissioner -4- [NIMANI 7258200