HomeMy WebLinkAboutD-2754-25 re Clay Terrace Interlocal Agreement
Sponsor: Councilor Aasen
ORDINANCE D-2754-25
AN ORDINANCE OF THE COMMON COUNCIL OF THE
CITY OF CARMEL, INDIANA, APPROVING AND
ADOPTING AN INTERLOCAL AGREEMENT
Synopsis:
Ordinance approving and adopting an interlocal agreement with Hamilton County,
Indiana concerning the U.S. 31 Ramps Economic Development Area.
WHEREAS, Indiana Code 36-1-7 authorizes cooperative endeavors between
governmental entities so as to better and more economically and efficiently serve the public
health, safety and welfare; and
WHEREAS, Indiana Code 36-1-7-2 authorizes the Common Council to approve such
“interlocal agreements”; and
WHEREAS, the “Interlocal Agreement” by and among the City of Carmel, Indiana (the
“City”); the City of Carmel Redevelopment Commission; Hamilton County, Indiana; and the
Hamilton County Redevelopment Commission pertaining to the amendment of prior interlocal
agreements concerning the U.S. 31 Ramps Economic Development Area and certain proposed
new economic development and allocation areas, a copy of which is attached hereto and
incorporated herein as Exhibit A (the “Interlocal Agreement”), is in the best interests of the City
and its residents.
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of
Carmel, Indiana, that:
Section 1. The foregoing Recitals are fully incorporated herein by this reference.
Section 2. The Interlocal Agreement should be and is hereby approved and adopted
by the Common Council of the City of Carmel, Indiana.
Section 3. The Clerk is hereby directed to file a copy of the Interlocal Agreement
with the Hamilton County Recorder and the Indiana State Board of Accounts within the time
periods established by Indiana Code 36-1-7-6.
Section 4. All ordinances or parts of ordinances in conflict herewith are hereby
repealed.
Section 5. This ordinance shall be in full force and effect immediately upon adoption
and compliance with Indiana Code 36-4-6-14.
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PASSED by the Common Council of the City of Carmel, this ________ day of
_______________________, 2025, by a vote of ______ ayes and _____ nays.
COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA
___________________________________
Adam Aasen, President Matthew Snyder, Vice-President
___________________________________ ____________________________________
Anthony Green Anita Joshi
___________________________________ ____________________________________
Ryan Locke Shannon Minnaar
___________________________________ ___________________________________
Teresa Ayers Rich Taylor
___________________________________
Jeff Worrell
ATTEST:
__________________________________
Jacob Quinn, Clerk
Presented by me to the Mayor of the City of Carmel, Indiana this ________ day of
_________________________ 2025, at _______ __.M.
____________________________________
Jacob Quinn, Clerk
Approved by me, Mayor of the City of Carmel, Indiana, this _________ day of
________________________ 2025, at _______ __.M.
_________________________________
Sue Finkam, Mayor
ATTEST:
___________________________________
Jacob Quinn, Clerk
Prepared by: Bradley J. Bingham
Barnes & Thornburg LLP
11 South Meridian Street
Indianapolis, IN 46204
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EXHIBIT A
Copy of Interlocal Agreement
[Attached]
DMS 43907834.2
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INTERLOCAL AGREEMENT BETWEEN THE
CITY OF CARMEL, INDIANA AND HAMILTON COUNTY, INDIANA
CONCERNING THE U.S. 31 RAMPS ECONOMIC DEVELOPMENT AREA
This Interlocal Agreement (the “Interlocal Agreement”) is entered into on the dates set
forth below by and among the Board of Commissioners of Hamilton County, Indiana (the “County
Commissioners”), the Hamilton County Council (the “County Council”), the Hamilton County
Redevelopment Commission (the “County Redevelopment Commission” and, together with the
County Commissioners and the County Council, the “County Parties”), and the Common Council
of the City of Carmel, Indiana (the “City Council”) and the City of Carmel Redevelopment
Commission (the “City Redevelopment Commission” and, together with the City Council, the “City
Parties”);
WITNESS THAT:
WHEREAS, pursuant to Indiana Code 36-1-7, et seq., and Indiana Code 36-7-25-4,
Hamilton County, Indiana (the “County”), acting by and through the County Commissioners, and
the City of Carmel, Indiana (the “City”) previously entered into that certain interlocal agreement
entitled “Interlocal Agreement between the City of Carmel and Hamilton County, Indiana
Concerning the 146th Street and U.S. 31 Project”, effective April 18, 2000, which was the date of
the last signatures thereto (the “2000 Interlocal Agreement”), in order to establish the parties’
agreement to provide a mechanism to finance the costs of the Ramps (as defined in the 2000
Interlocal Agreement) by establishing a new economic development area encompassing the
Benefitted Parcels (as defined in the 2000 Interlocal Agreement) which were described on Exhibit
A thereto; and
WHEREAS, at the time of execution of the 2000 Interlocal Agreement, some of the
Benefitted Parcels were located within the then-existing corporate boundaries of the City, and
some of the Benefitted Parcels were located within the then-existing unincorporated area of the
County; and
WHEREAS, pursuant to the terms of the 2000 Interlocal Agreement, the City Council
adopted Ordinance D-1459-00 on April 17, 2000 (the “2000 Ordinance”) which assigned
jurisdiction of the Benefitted Parcels within the then-existing corporate boundaries of the City to
the County Redevelopment Commission, pursuant to Indiana Code 36-7-25-4, for the sole purpose
of permitting the County Redevelopment Commission to create an allocation area pursuant to
Indiana Code 36-7-14-39 encompassing the Benefitted Parcels (the “Proposed Allocation Area”)
to capture tax increment revenues derived from the increase of assessed value of real property
within the Proposed Allocation Area to be used to pay the costs to construct the Ramps project
described in the 2000 Interlocal Agreement, and which assignment remains in full force and effect
so long as there are any outstanding principal and interest due on bonds issued to pay the costs of
the construction of the Ramps and local streets identified in the 2000 Interlocal Agreement, but in
no event shall the assignment be valid beyond the calendar year 2030 without an amendment to
the 2000 Interlocal Agreement; and
WHEREAS, on June 2, 2000, pursuant to the terms of the 2000 Interlocal Agreement, the
County Redevelopment Commission adopted a declaratory resolution, as subsequently confirmed
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(collectively, the “Ramps Declaratory Resolution”), which established an economic development
area pursuant to Indiana Code 36-7-14 comprised of the Benefitted Parcels, designated as the “U.S.
31-146th Street Economic Development Area” (the “Area”), designated all of the Area as one or
more separate “allocation areas” pursuant to Indiana Code 36-7-14-39, and adopted a plan for the
Area; and
WHEREAS, pursuant to Indiana Code 36-1-7, et seq., and Indiana Code 36-7-25-4, the
parties entered into that certain interlocal agreement entitled “Interlocal Agreement between the
City of Carmel and Hamilton County, Indiana Concerning Construction of Road Projects (Lowes
Way)”, effective October 16, 2017, which was the date of the last signatures thereto (the “2017
Interlocal Agreement”), in order to establish the parties’ agreement to finance certain additional
road projects in, benefitting or serving the Area, as more particularly described in the 2017
Interlocal Agreement; and
WHEREAS, in accordance with the 2000 Interlocal Agreement and the 2017 Interlocal
Agreement, the County, acting by and through the County Redevelopment Commission, has
previously issued the following obligations, which are secured by tax increment revenues derived
from the increase of assessed value of real property within the Area pursuant to Indiana Code 36-
7-14-39(b) (collectively, the “Ramps TIF Revenue”):
a. the Hamilton County, Indiana Redevelopment Commission Redevelopment
District County Option Income Tax Refunding Revenue Bonds of 2010, Series B
(the “2010B Bonds”), currently outstanding in the aggregate principal amount of
$285,000, with a final maturity date of January 10, 2025, which are payable from
the Ramps TIF Revenue and, to the extent the Ramps TIF Revenue is insufficient,
from the County’s distribute chare of certified share portion of local income tax
imposed on the adjusted gross income of taxpayers in the County and received by
the County under Indiana Code 6-3.6-6-4(3) (the “County Certified Shares”), and
b. the Hamilton County, Indiana Redevelopment Commission Redevelopment
District Local Income Tax Revenue Bonds of 2018 (the “2018 Bonds”), currently
outstanding in the aggregate principal amount of $7,590,000, with a final maturity
date of July 10, 2030, which are payable from the Ramps TIF Revenue and, to the
extent the Ramps TIF Revenue is insufficient, from the County Certified Shares;
and
WHEREAS, since the creation of the Area, the City has annexed all of the real estate within
the Area into the City’s corporate boundaries, and, pursuant to Indiana Code 36-7-14.3.5, the
County Redevelopment Commission may not issue any additional bonds or enter into leases that
are payable from the Ramps TIF Revenue unless the City Council adopts an ordinance approving
the issuance and the use of the Ramps TIF Revenue for such purpose; and
WHEREAS, because the City has assigned jurisdiction of the Area to the County
Redevelopment Commission through December 31, 2030, and because Indiana Code 36-7-14-57
prohibits a parcel from being located in more than one (1) allocation area, the City Redevelopment
Commission cannot create new allocation areas within the Area without the County’s cooperation;
and
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WHEREAS, it is in the best interests of the citizens of the City and the citizens of the
County to enter into this interlocal agreement to accomplish the following:
a. To allow the City, acting through the City Redevelopment Commission, to facilitate
new investment in the Clay Terrace area for the benefit of real estate located in the
Area and the citizens of the City and the County;
b. To allow the City, acting through the City Redevelopment Commission, to create
two new economic development areas consisting of the BJ’s Parcel and the Clay
Terrace Parcels, respectively (each as hereinafter defined), and pledge and assign
all or a portion of the tax increment revenues derived therefrom to the County for
the purposes and in the amounts described herein;
c. To ensure the County Redevelopment Commission has sufficient tax increment
revenues necessary to pay debt service on the 2010B and the 2018 Bonds
(collectively, the “Outstanding Bonds”) through the final maturity thereof, which
Outstanding Bonds financed local public improvements benefitting and serving the
Area;
d. To provide a mechanism to allow the County to pay or finance the costs of
additional local public improvements in, serving or benefitting the Area, including
additional improvements to 146th Street;
e. To increase and diversify the tax base, to increase employment opportunities and
to improve the transportation system of the City and the County; and
f. To improve the health, safety and welfare of the citizens of the City and the County.
NOW, THEREFORE, in consideration of the premises, the mutual covenants and the
agreements hereinafter contained, and for other valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, it is agreed by and among the parties hereto as follows:
1. This agreement shall be construed as an Interlocal Agreement entered into by the
parties pursuant to the provisions of Indiana Code 36-1-7 and Indiana Code 36-7-25-4, and shall
constitute an amendment to the 2000 Interlocal Agreement and the 2017 Interlocal Agreement to
the extent provided for herein.
2. The County Parties acknowledge, consent and agree that, upon passage of the
ordinance by the City Council approving this Interlocal Agreement and the execution hereof by all
parties hereto, the 2000 Ordinance shall be, and hereby is, amended for purposes of rescinding the
assignment to the County and the County Redevelopment Commission of jurisdiction over the
parcel identified on Appendix A hereto (the “BJ’s Parcel”) and the parcels identified on Appendix
B hereto (the “Clay Terrace Parcels”); provided however, this rescission of assignment of
jurisdiction shall only apply to the BJ’s Parcel and the Clay Terrace Parcels, and the remainder of
the assignment of jurisdiction to the County and the County Redevelopment Commission set forth
in the 2000 Ordinance shall remain in full force and effect until December 31, 2030. The County
Parties acknowledge that upon passage of the ordinance by the City Council approving this
Interlocal Agreement and the execution hereof by all parties hereto, the County Parties shall no
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longer have any jurisdiction over the BJ’s Parcel and the Clay Terrace Parcels for the purposes
contemplated by the 2000 Ordinance.
3. The County Redevelopment Commission shall adopt a declaratory resolution on or
before December 1, 2024, to amend the Ramps Declaratory Resolution by removing the BJ’s
Parcel from the Ramps East Allocation Area (as defined therein), removing the Clay Terrace
Parcels from the Ramps West Allocation Area (as defined therein), and removing the BJ’s Parcels
and the Clay Terrace Parcels from the Area.
4. The City Redevelopment Commission shall adopt a declaratory resolution on or
before December 31, 2024 establishing a new economic development area which encompasses the
BJ’s Parcel and the Clay Terrace Parcels (the “New EDA”), designating the BJ’s Parcel as an
allocation area for purposes of Indiana Code 36-7-14-39 (the “BJ’s Allocation Area”), and
designating the Clay Terrace Parcels as an allocation area for purposes of Indiana Code 36-7-14-
39 (the “Clay Terrace Allocation Area”), and shall complete all procedures required by law to
complete the establishment of the New EDA, the BJ’s Allocation Area and the Clay Terrace
Allocation Area with due diligence and in any event prior to the first anniversary date of adoption
of such declaratory resolution.
5. Pursuant to Indiana Code 36-7-25-4, the City Council, as the legislative body of the
City (on behalf of the City Redevelopment Commission), upon passage of the ordinance by the
City Council approving this Interlocal Agreement and the execution hereof by all parties hereto,
irrevocably pledges one hundred percent (100%) of the tax increment revenues to be derived from
the increase of assessed value of real property within the BJ’s Allocation Area pursuant to Indiana
Code 36-7-14-39(b) (the “Pledged BJ’s TIF Revenue”) to the County Redevelopment Commission
for the life of the BJ’s Allocation Area. The Pledged BJ’s TIF Revenue shall be used by the County
Parties for any of the following purposes:
a. To pay debt service on the Outstanding Bonds, through the final maturity thereof;
b. To replenish any debt service reserve funds securing the Outstanding Bonds,
through the final maturity thereof; and/or
c. To pay the costs of additional projects and improvements to 146th Street and other
related local public improvements which will be in, serving or benefitting the Area,
as the County shall determine in its sole discretion (collectively, the “Future County
Improvements”).
6. In the event that the Ramps East Allocation Area and the BJ’s Allocation Area, in
the aggregate, do not generate a sufficient amount of tax increment revenues (together, the
“Aggregate Revenues”) to meet one hundred percent (100%) coverage of the semi -annual debt
service payments due on the Outstanding Bonds in any given calendar year through and including
December 31, 2030 and for any reason (the “Coverage Trigger”), the City and/or the City
Redevelopment Commission shall remit to the County an amount equal to the difference between
the semi-annual debt service payment due on the Outstanding Bonds and the Aggregate Revenues
for that calendar year, subject to the limitation in the following sentence (the “Remittance
Amount”), by no later than thirty (30) days after the date the City and/or the City Redevelopment
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Commission shall have received written notice thereof from the County. The Remittance Amount
shall not exceed twenty-five thousand dollars ($25,000) for any calendar year. Upon the
occurrence of a Coverage Trigger, the County Redevelopment Commission shall promptly notify
the City by providing written notice of the same, together with supporting documentation of the
Aggregate Revenues and the calculation of the Remittance Amount for that calendar year, via e-
mail or to the City of Carmel, Indiana, Carmel City Hall, One Civic Square, Carmel, Indiana
46032, attention: CFO/Controller.
7. The City, acting through its City Redevelopment Commission, shall use its best
efforts to attract new mixed-use developments within the Clay Terrace Allocation Area, and may
use up to ninety-five percent (95%) of the tax increment revenues to be derived from the increase
of assessed value of real property within the Clay Terrace Allocation Area pursuant to Indiana
Code 36-7-14-39(b) (the “Clay Terrace TIF Revenue”) to incentivize such new development.
8. Pursuant to Indiana Code 36-7-25-4, the City Council, as the legislative body of the
City, upon passage of the ordinance by the City Council approving this Interlocal Agreement and
the execution hereof by all parties hereto, irrevocably pledges five percent (5%) of the Clay Terrace
TIF Revenue to the County Redevelopment Commission for the life of the Clay Terrace Allocation
Area (such portion, the “Pledged Clay Terrace TIF Revenue”). The Pledged Clay Terrace TIF
Revenue shall be used by the County Parties solely for the purpose of paying the costs of the Future
County Improvements.
9. The County, acting through the County Redevelopment Commission, and with the
City Council’s approval as set forth in Section 10 below, may issue one or more series of its tax
increment revenue bonds to be secured and payable from the Pledged BJ’s TIF Revenue and the
Pledged Clay Terrace TIF Revenue in order to provide funds to pay all or a portion of the County
share of the Future County Improvements, together with any incidental costs related thereto and
on account of issuance of the bonds (the “Future Bonds”).
10. The City Council, as the legislative body of the City, upon passage of the ordinance
by the City Council approving this Interlocal Agreement and the execution hereof by all parties
hereto, approves the issuance of the Future Bonds by the County, through the County
Redevelopment Commission, as described in Section 9 above, and approves the use of the Pledged
BJ’s TIF Revenue and the Pledged Clay Terrace TIF Revenue to be used to pay principal of and
interest on the Future Bonds.
11. The County Parties shall select such engineers, design professionals and appraisers
as are necessary to design and construct the Future County Improvements in the County’s sole
discretion. The County shall be responsible for obtaining bids and awarding any contracts for land
acquisition, design, construction inspection and construction of the Future County Projects. The
County shall manage the Future County Improvements and shall be responsible for and pay all
costs thereof. The County shall take commercially reasonable steps to coordinate the Future
County Improvements with the City’s Chief Infrastructure Officer regarding the same. If the
County should desire the City to accept and maintain all or a portion of such Future County
Improvements upon completion, the County shall request the same subject to approval by the
Mayor of the City.
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12. The County, acting through its County Highway Department, and the City, acting
through its Engineering Department, shall meet periodically, to discuss the progress of the Future
County Improvements.
13. Unless otherwise agreed to by the City in accordance with Section 10, upon
completion of all or part of each Future County Improvement, the County shall accept, inventory
and maintain such Future County Improvement. Each unit will receive all State and Federal funds
available for maintenance of the portion of the Future County Improvements to be maintained by
the unit, including Local Road and Street, Motor Vehicle Highway, and Bridge Maintenance funds.
14. Following the creation of the BJ’s Allocation Area and the Clay Terrace Allocation
Area, the County agrees to submit a written spending report to the City no more frequently than
annually which describes the expenditures of the Pledged BJ’s TIF Revenue and/or the Pledged
Clay Terrace TIF Revenue in reasonable detail during the prior calendar year.
15. The parties agree to take all actions and proceedings necessary to implement the
terms and conditions of this Interlocal Agreement.
16. The City Parties and the County Parties each agree that they shall be responsible
for their own fees and expenses incurred related to this Agreement and the actions contemplated
herein, including legal fees and municipal advisor fees, and that neither party shall look to the
other party for reimbursement of the same.
17. In the event there is dispute between the parties concerning any terms of this
Interlocal Agreement, the dispute shall be initially discussed by the Director of the Hamilton
County Highway Department and the City Engineer of Carmel or their designees. If there is no
resolution of the issue at the staff level described above, the dispute shall be submitted to a four 4)
person dispute committee to include: (i) the Mayor of the City or his/her designee; (ii) a member
of the City Council designated by the City Council; (iii) a member of County Commissioners
designated by the County Commissioners; (iv) a member of the County Council designated by the
County Council; (v) the Director of the Hamilton County Highway Department (as a non-voting
member); and (vi) the City Engineer (as a non-voting member) (collectively, the “Dispute
Committee”). The meeting of the Dispute Committee shall be considered discussions to resolve
potential litigation and, therefore, held in a noticed executive session.
18. In the event the dispute is not resolved by the Dispute Committee, the parties agree
to submit the dispute to mediation pursuant to the Indiana Rules of Alternative Dispute Resolution
prior to the initiation of litigation. In the event the parties are unable to agree upon a mediator for
such dispute, the parties agree to alternately strike from a panel of mediators appointed by the
Judge of the Circuit Court of Hamilton County.
19. This Interlocal Agreement may be executed in one or more counterparts, any of
which shall be regarded for all purposes as an original and all of which constitute but one and the
same instrument.
20. This Interlocal Agreement shall be recorded by the County and a recorded copy
shall be delivered to the Controller of the City and to the Hamilton County Auditor.
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[Signature Pages Follow]
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ALL OF WHICH IS AGREED TO BY the Common Council of the City of Carmel,
Indiana, on this ______ day of _______________, 2025.
COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA
___________________________________
Adam Aasen, President Matthew Snyder, Vice-President
___________________________________ ____________________________________
Teresa Ayers Anita Joshi
___________________________________ ____________________________________
Ryan Locke Shannon Minnaar
___________________________________ ___________________________________
Anthony Green Rich Taylor
___________________________________
Jeff Worrell
ATTEST:
__________________________________
Jacob Quinn, Clerk
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6th January
APPENDIX A
Parcel comprising the new BJ’s Allocation Area
The following parcel is to be removed from the U.S. 31 Ramps Economic Development
Area and designated by the City Redevelopment Commission as the new BJ’s Allocation Area,
and are shown in the darker shaded area on the map attached hereto:
PARCEL ID NUMBER:
16-10-19-00-00-001.009
MAP
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APPENDIX B
Parcels comprising the new Clay Terrace Allocation Area
The following parcel(s) are to be removed from the U.S. 31 Ramps Economic Development
Area and designated by the City Redevelopment Commission as the new Clay Terrace Allocation
Area, and are shown in the red-shaded area on the map attached hereto:
PARCEL ID NUMBER:
16-09-24-00-00-015.001
16-09-24-00-00-015.101
MAP
DMS 43864146.2
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