Loading...
HomeMy WebLinkAboutCRC-04-2002 Parkwood East Project EDARESOLUTION NO. - 00 RESOLUTION OF THE CARMEL REDEVELOPMENT COMMISSION PLEDGING TAX INCREMENT WHEREAS, the City of Carmel ("City") Redevelopment Commission ("Commission") has created and expanded the Parkwood Economic Development Area ("Area") and an allocation area that is coterminous with the Area, and adopted an economic development plan as amended on June 11, 2002 ("Plan") for the Area; WHEREAS, the City is issuing its Taxable Economic Development Revenue Bonds, Series 2002 (Parkwood East Project) ("Bonds") pursuant to a Trust. Indenture ("Trust Indenture") between the City and Fifth Third Bank, Indiana, as Trustee, the proceeds of which will be loaned to Duke Realty Limited Partnership ("Borrower") for road, water and sewer infrastructure improvements and environmental remediation and abatement ("Project") in, serving or benefitting the Area. The proceeds will be loaned to the Borrower pursuant to a Loan Agreement between the Borrower and the City ("Loan Agreement'); WHEREAS; in order to help offset the loan repayments of the Borrower and finance the Project, the Commission has determined that it is in the best interest of the City and its residents to pledge an amount of real property tax proceeds from the assessed valuation within the Area in excess of the assessed valuation described in IC 36-7-14-39(b)(1) as reduced by the credit provided for in IC 36-7-14-39.5 ("Tax Increment') equal to (i) all of the Tax Increment generated from buildings in Parkwood Crossing, Parkwood East and Parkwood West office developments constructed or to be constructed by the Borrower collected in the Area through and including December 31, 2006 and (ii) an amount of Tax Increment equal to 100% of the debt service due on the Bonds beginning August,l, 2007 and thereafter, plus Annual Fees (as defined in the Trust Indenture), for a tern not to exceed the tern of the Bonds ("TIF Revenues"); and WHEREAS, the Commission believes that pledging the TIF Revenues will help further the accomplishment of the Plan; NOW, THEREFORE, BE IT RESOLVED BY THE CARMEL REDEVELOPMENT COMMISSION THAT: 1. The Commission hereby finds that the pledge of TIF Revenues to the City for payment of the Bonds to offset the loan repayments of the Borrower under the Loan Agreement will help accomplish the Plan for the Area and will promote the economic development of the City and the Area. 2. The Commission hereby irrevocably pledges the TIF Revenues to the payment of the Bonds to offset the loan repayments of the Borrower due under the Loan Agreement for a -1- term of years not less than the term of the Bonds. There are no prior liens, encumbrances or other restrictions on the Commission's ability to pledge the TIF Revenues. 3. The Commission reserves the right to issue bonds, enter into leases, or enter into additional pledges payable from Tax Increment, in whole or in part, on a parity with the pledge for the Bonds to be issued for the Projectin.accordance with the following requirements, for the purpose of raising money for future capital projects in, serving or benefitting the Area ("Parity Obligations"). The authorization and issuance of such Parity Obligations shall be subject to the following conditions precedent: (a) All payments due under the Bonds and any Parity Obligations payable from the Tax Increment or TIF Revenues shall be current to date in accordance with the terms thereof, with no payment in arrears. (b) Parity Obligations issued prior to December 31, 2010, other than Parity Obligations issued to fund Parkwood West improvements which maybe issued at any time upon satisfaction of the coverage requirement set. forth by the Commission in the resolution pledging Tax Increment, may only be issued if: (i) Parity Obligations have been issued to fund Parkwood West improvements; or (ii) the Commission obtains a projection using reasonable assumptions, based on a finding of the Commission, prepared by a recognized certified public accounting firm with experience in public finance in the State of Indiana ("CPA"), that the projected Tax Increment to be generated by the project to be financed with the proposed'Parity Obligations (not including pledged TIF Revenues) is equal to at least 125% of the proposed debt service for the proposed Panty Obligation. (c) Parity Obligations payable from Tax Increment may be issued after, the earlier of: (i) the issuance of Panty Obligations to fund Parkv,,ood West improvements; or (ii) December 31, 2010 if: (1) the actual Tax Increment is equal to at least 125% of the combined debt service on the Bonds, Parity Obligations and proposed Panty Obligations, or (2) the Commission obtains a projection, using reasonable assumptions, based on a finding of the Commission; prepared by a CPA which projects that the Tax Increment will equal at least 125% of the combined debt service on the Bonds, Parity Obligations and proposed Parity Obligations. The Commission must also provide the Borrower with a written notice of the issuance of Panty Obligations and a copy of the projections at least 30 days prior to the issuance of such Parity Obligations. (d) Principal of and interest on any Panty Obligations and lease rentals on Parity Obligations which are leases or junior obligations shall be payable semiannually on January 15 and July 15. The Commission shall approve and confirm the findings and estimates set forth in the above-described certificate in any resolution authorizing the Panty Obligations. Except as provided in this Resolution, the terms and conditions of any Parity Obligations shall be set forth in the resolution authorizing such Parity Obligations. -2- The Commission reserves the right to enter into obligations Payable from Tax_ Increment thatare junior and..subordinate to heBonds.. 4. `This Resolution shall be effective upon passage. ADOPTEDJune 11, 2002. CARME,L REDEVELOPMENT COMMISSION 'Pre"sidcnt Attest: ecz 'y [MDY 5987780 -3-