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HomeMy WebLinkAboutCRC-06-16-97J J MINUTES Carmel Redevelopment Commission June 16, 1997 President Rick Roesch called the meeting to order at 5:00 p.m. Members present were Amy Boldt, Megan Boschini, and Susan Westermeier. Mayor Brainard was present for much of the meeting as were Bruce Donaldson, attorney at law with Barnes & Thornburg, Loren Rooney, accountant with Umbaugh & Associates, Michael Shaver with Wabash Scientific, and Darrell Johnson, a member of the Carmel Redevelopment Authority.. Ron Caner, member of the Carmel Redevelopment Commission, arrived shortly after the meeting began. Mr. Roesch suspended approval of the minutes of the May 13, 1997 meeting to allow additional time for Sue Westermeier to read and review them. Mr. Roesch indicated that he has an itemized memorandum dated June 6, 1997 Charlene Kelsey, Department of Community Services for the City of Carmel requesting reimbursements for itemized expenses incurred and paid by the DOCS for the Redevelopment Commission totaling $2,006.56 through May 13, 1997. Mr. Roesch indicated that the CRC had been misinformed previously and cannot assess any fees on any bond issues to generate revenues to cover our expenses. Susan Hunter, with the Carmel Legal Department will be working with the Clerk's Office to determine what will be done to reimburse DOCS for our operating expenses. The majority of this total represents salary and benefits paid to Charlene Kelsey who has been compensated for both regular and overtime (to attend meetings) hours worked to benefit the CRC. Mr. Roesch will be working on a budget for the CRC's costs for next year so there will be a vehicle for getting the reimbursement of our expenses allocated properly. Ms. Boschini made the Motion to Approve the Minutes of the May li, 1997 meeting. Sue Westermeier seconded the Motion. It was unanimously approved. After Mr. Roesch confirmed that no member of the public was present to speak regarding any of the Resolutions on this evenings agenda, the following Motions were made and votes taken on these Resolutions: Motion Waive Reading Approve Waive Reading Approve Waive Reading Approve Waive Readine Made By Res. Number Ms. Boldt 7-1997 Ms. Boschini 7-1997 Ms. Westermeier 8-1997 Ms. Boschini 8-1997 Ms . Boschini 9-1997 Ms. Westermeier 9-1997 Ms. Boschini Approve Ms. Boschini Close Public Hearing Mr. Carter 10-1997 10-1997 Seconded by Votes in favor Ms. Boschini unanimous Ms. Westermeier unanimous Ms. Boschini unanimous Ms. Westermeier unanimous Ms. Westermeier unanimous Ms. Boschini unanimous Ms. Westermeier unanimous Ms. Westermeier unanimous 7,8,9,10-1997 Ms. Westermeier unanimous i ?0 Mr. Donaldson reviewed the process they used to determine how COIT funds could be used to finance capital projects. Financing through Lease Agreements with the Redevelopment Authority for road improvements is an option for a city using the pledge of its COIT funds. Creation of the Redevelopment Authority is done to enable these transactions. The Redevelopment Authority approved the form of the Lease on June 12, 1997 at their meeting. This Lease will be sent on to the City Council after a Public Hearing by the Redevelopment Commission on July 7, 1997. The Council will vote on approving the Lease and the pledging of the COIT funds for payment of the Lease. Ms. Rooney displayed a flow chart to explain the functions of the Redevelopment Commission and the Redevelopment Authority. The Redevelopment Authority will actually issue the bonds then the Redevelopment Commission will collect the COIT funds to pay the Redevelopment Authority. Approximately $25 million of the $32 million in bonds will be used to construct the new roads and for bond-related costs. Approximately $7 million will be paid by to the City of Carmel to acquire the existing roadway of Hazel Dell Road and Pennsylvania. Street. The City will then use the $7 million to apply toward the other non-leased projects--126th Street, intersection at Main and Fourth Streets, and the Old Town Carmel Improvements. The lease payments cannot begin until the construction projects are completed. A portion of the bond proceeds will be held as a contingency fund to pay the bonds until the lease payments can begin. The Hazel Dell and Pennsylvania Street projects will consume the majority of the funds to build and, therefore, are the two leased projects. The other projects are not leased projects because it is desirable to minimize the number of projects being leased because of the payment restriction until construction is completed., The City will be funding a portion of the non- leased projects from the General Fund. Hazel Dell will cost about $20.2 million and Pennsylvania Street will cost about $4.4 million. Approximately $2.7 million will be the debt service reserve on the bonds--about a year's worth of debt service in case of a shortfall in COLT revenues. Capitalized interest (the funds held to pay the lease payments until construction is completed) is about $2.4 million. August, 1997 is estimated as the date when the bond proceeds will be available for use. A trustee bank will handle the disbursement of funds. Hazel Dell and Pennsylvania are estimated to be complete by the Fall of 1998. The capitalized interest would pay until January, 1999. The city will assign the construction contracts over to the Redevelopment Authority. COIT funds are projected to continue to grow and the debt service funds are very conservatively estimated from the bond proceeds which should further lessen the impact the lease payments will have. Projections used by Mayor Brainard and the City for planning are very conservative and, in fact, allow for reductions in property tax rates in the future. Schools do not benefit from COIT funds. COIT fund distribution is based upon the property tax levies by percentages to the township, city, etc. Mr. Donaldson indicated that the bonds will probably be in the market by early August. Mr. Shaver stated there were two scribner's errors located within the Economic ® Development Plan for Hazel Dell Road. Page 16 where a reference was made to two east-west corridors should have read simply "two corridors" and on Page 20 the word "estimated" is misspelled. He will make these corrections and issue new copies. A Motion to Dispense.with the:Reading-of Resolution nl 1-'1997 was made by Ron Carter, and secondedby Sue-Westermeier: and passed unanimously. A Motion to Approve Resolution I 1-1997 was made by Sue Westermeier and seconded by Ron-Carter thert passed unanimously. Amy'Boldt had an`updatefor oId business: fromthe Indiana Association otCities and Towns (IACT);iegarding;the possibility of remuneration or compensation, such as,meeting fees, -for the Carmet,Redevelopment Commission members. Dennis Maloy of IACT indicated that no such salary, per diem or other pay is currently given to members, of Redevelopment Commissions of other. communities in Indiana. He added a, reminder that theIndiana Constitution would' prohibiCpayment to anyone currently serving iii,another paid capacity for the city, such as a City. Councilman, Some other communities do compensate Redevelopment Commission membets.for mileage at the IRS'allowable.rate. Mr. Maloy will bereviewing the Indiana ,statutes'with.respect, to this matter and will get back to Amy later with an update. A Motion to Adjourn'was`made by Ms: Westermeier and seconded by Mr. Carter, After, a unanimous vote, the"meeting ended. 10