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HomeMy WebLinkAboutCRC-10-2001 Merchants Pointe $1,300,000 Bond PRELIMINARY BOND RESOLUTION OF CARMEL REDEVELOPMENT COMMISSION RESOLUTION NO. l 0 -? CVI WHEREAS, IC 36-7-14 and IC 36-7-25 (collectively "Act") authorize the Carmel Redevelopment Commission ("Commission") to declare an area to be an economic development area and to establish an allocation area within an economic development area providing for the distribution of property tax revenues generated within the allocation area; WHEREAS, the Commission adopted a Declaratory Resolution ("Declaratory Resolution"), as amended, on March 14, 2001, and was confirmed by a Confirmatory Resolution ("Confirmatory Resolution") adopted on May 24, 2001; WHEREAS, the Commission, by the Declaratory Resolution, as confirmed by the Cohf oratory Resolution ("Area. Resolution"), established. the boundaries of the Merchants' Pointe Economic Development Area ("Economic Development Area") and declared this area to be an economic development area, and the Economic Development Area is more particularly described in the map attached to and incorporated in the Declaratory Resolution; WHEREAS, pursuant to the Area Resolution, the economic development plan of the Economic Development Area was adopted ("Economic Development Plan"); WHEREAS, pursuant to the Area Resolution and the Economic Development Plan of the Economic Development Area, the Commission designated the entire Economic Development Area as an allocation area ("Allocation Area") for purposes of capturing incremental ad valorem property tax revenues levied and collected in the Allocation Area (`Real Property Tax Increment") to pay debt service on bonds issued to finance the economic development projects described below and to pay certain other costs permitted by the Act and this Resolution; WHEREAS, the Area Resolution provides for the capture of all property taxes on the incremental assessed value of real property in the Allocation Area ("Tax Increment"); WHEREAS, IC 36-7-14-39.5 provides for an additional credit for property taxes in the Allocation Area payable from Tax Increment (as defined below), which credit may be eliminated or reduced by resolution of the Common Council of the City upon recommendation of the Commission; WHEREAS, the Common Council of the City has taken no action to provide that the additional credit under IC 36-7-14-39.5 does not apply in the Allocation Area; WHEREAS, the Commission has found and detennined that: (i) the planning, replanning, development, and redevelopment of the Economic Development Area is a public and governmental function that cannot be accomplished through the ordinary operations of private enterprise; (ii) the planning, replanning, development and redevelopment of the Economic Development Area would benefit the public health, safety, morals, and welfare in, and increase the economic well-being of, and serve to protect and increase property values in, the City of Carmel ("City") and the State of Indiana and would be of public utility and benefit; and (iii) the planning,. replanning, development and redevelopment of the Economic Development Area are public uses and purposes for which money may be spent; WHEREAS, the Commission estimates that the total costs of the Projects (as defined below) will not exceed $1,300,000; and, WHEREAS„ in order to facilitate the financing of the Project, the Commission has. determined to give preliminary approval of the issuance of bonds; NOW, THEREFORE, BE IT RESOLVED BY THE CARMEL REDEVELOPMENT COMMISSION THAT: Section 1. The Commission finds and determines that in order to proceed with the planning; replanning, development and. redevelopment of the Economic Development Area, it is necessary to issue special taxing district bonds of the Commission, acting in the name of the City, in one or more series, payable solely out of Tax Increment allocated and collected, in the Allocation Area, and to the extent that Tax Increment is not sufficient, from payments made pursuant to a letter of credit and/or a guaranty provided by Merchants' Pointe Associates, LLC (or its affiliate designee(s) acceptable to the Commission in its sole discretion) in the aggregate principal amount not to exceed One Million Three Hundred Thousand Dollars ($1,300,000), designated as "Redevelopment District Tax Increment Revenue-Bonds of 2001A" (the "Bonds") for the purpose of procuring funds to the Economic Development Area, including the acquisition and construction of certain road and drainage improvements and traffic signals in or serving the Economic Development Area (as more particularly set forth in Exhibit A) (collectively, the "Projects"), costs associated with the issuance of the Bonds, a debt service reserve for the Bonds, and capitalized interest on the Bonds, all as permitted by the Act ("Costs of the Project"). Section 2. The Commission shall proceed to undertake the planning, replanning, development and redevelopment of the Economic Development Area and the acquisition and construction of the Projects in or serving the Economic. Development Area upon issuance of the Bonds. Section 3. For the purposes of providing funds with which to pay the cost of acquiring and constructing the Projects and the incidental expenses necessary to be incurred in connection therewith and on account of the issuance and sale of the Bonds, including, if necessary, a debt service reserve for the Bonds and capitalized interest on the Bonds, the Commission shall issue the Bonds, in one or more series; in the name of the City in an amount not to exceed One Million Three Hundred Thousand Dollars ($1,300,000) subject to satisfaction of all applicable legal requirements, with a discount not to exceed the discount set forth in the final bond resolution of the Commission. The Bonds shall be payable from Tax Increment. The amount of the Bonds may not exceed the estimated Costs of the Project, including all expenses described in the Act. Section 4. The Bonds shall be issued in denominations of $5,000 and integral multiples thereof with interest payable semi-annually. The Bonds with be payable in the manner provided by IC 36-7-14 and other applicable statutes and will bear interest at a rate or rates not to exceed 9% per annum, the tactual "rate to be determined by negotiation, with a final maturity not to exceed 25 years from, the issue date of the Bonds and with, the principal,payable as set forth in. the, final bond-resolution. The Bonds may be subject to optional ors mandatory sinking fund redemption.as provided in the final bond resolution. The exact terms of the,Bonds shall;be set, forth in a final bond resolution to be adopted by the,Commission. Section 5. After, adoption. of this Resolution, the, Secretary of the Commission. shall publish.and post notice of;the determinntion of the Commission to issue„Bonds: This=notice will be published two times, one week apart, ,in the Noblesville: Daily Ledger and posted', in three public places in the Carmel' Redevelop mentDistrict. Section 6, The Bonds will.be,underwrittenby McDonald &,Co. Seetwn 7. The President of the Commission is hereby authorized to selecttwo appraisers to appraise the'.Projects to be;acquired in accordancewith`IC 36-7=.14-19. Section g, This Resolution shali'be effective as,,ofthe date of its adoption. Adopted by-the. Carmel, Redevelopment ,Commission, this r 23 day of August„2001. CARIVIEL REDEVELOPMENT` COMMISSION resident Vice-President , .Member AT-TEST: Secretary. 261M EXHIBIT A Projecfs. l . The construction and acquisition of Merchants' Pointe Drive, including the, acquisition, construction"and installation of the paved roadviay,;curbs and sidewalks, sewers, and related improvements and enhancements: 2. Drainage lmprovemeiits,t6116'' Street. Reconfiguration and installation of traffcisignal'atiriiersection of 11,6911 Street, AAA Way and.MerchanW Pointe Drive. ?614".1