HomeMy WebLinkAboutCRC-2008-2 $14million BANN
RESOLUTION NO. 2008-2
RESOLUTION OF THE CITY OF CARMEL REDEVELOPMENT
COMMISSION AUTHORIZING THE ISSUANCE OF BONDS FOR THE
PURPOSE OF REFUNDING OUTSTANDING BOND ANTICIPATION
NOTES AND PAVING COSTS RELATED THERETO
WHEREAS, within the City of Cannel, Indiana, a governmental unit and political
subdivision of the State (the "City"), there is created the City of Cannel Redevelopment District
(the "District"), governed by the City of Carmel Redevelopment Commission (the
"Commission"); and
WHEREAS, the Commission has previously created a redevelopment area designated as
the City Center Redevelopment Area (the "City Center Area"), designated a portion of the City
Center Area as an allocation area (the "City Center Allocation Area") under I.C. 36-7-14 and I.C.
36-7-25 (collectively, the "Act"), and created the City Center Redevelopment Allocation Area
Fund (the "City Center A]Iocation.Fund"); and
WHEREAS, the Commission has previously created an economic development area
designated as the Integrated 126 h Street Corridor Economic Development Area (the "126`h Street
Area' ), designated the entire 126 h Street Area as an allocation area (the "126`h Street Allocation
Area") under the Act, and created the Integrated 126'h Street Corridor Economic Development
Allocation Area Fund (the "126'h Street Allocation Fund"); and
WHEREAS, the Commission has previously created an economic development area
designated as the Old Town Economic Development. Area (the "Old Town Area") pursuant to
the Act; and
WHEREAS, the Commission has adopted an Integrated Economic Development Plan
and Amended Redevelopment Plan (as amended.from time to time, the "Plan"), which sets forth
various redevelopment and economic development projects (the "Projects") for, among other
areas, the City Center Area, the Old Town Area and the 126"' Street Area; and
WHEREAS, the Act authorizes the Commission to issue bonds of the District, in the
name of the City, in anticipation of revenues of the District and to use the proceeds of such
bonds to acquire and redevelop property in the redevelopment and economic development areas;
and
WHEREAS, the Commission previously issued the "City of Cannel, Indiana,
Redevelopment 'District Taxable Tax Increment Revenue Bond Anticipation Notes, Series 2003
A" (the "2003 A BANs"), in the aggregate principal amount of $2,995,000, all of which remains
outstanding as of the date hereof. and
WHEREAS, the Commission previously issued the "City of Cannel, Indiana,
Redevelopment District Taxable Tax Increment Revenue Bond Anticipation Notes, Series 2004
A" (the "2004 A BANS"), in the aggregate principal amount of $2,995,000, all of which remains
outstanding as of the date hereof; and
WHEREAS, the Commission previously issued the "City of Carmel, Indiana,
Redevelopment District Taxable Tax Increment Revenue Bond Anticipation Notes, Series 2005
A" (the "2005 A BANs"), in the aggregate principal amount of $2,995,000, all of which remains
outstanding as of the date hereof, and
WHEREAS, the Commission previously issued the "City of Carmel, Indiana,
Redevelopment District Taxable Tax Increment Revenue Bond Anticipation Notes, Series 2007
A" (the "2007 A BANs"), in the aggregate principal amount of $2,995,000, all of which remains
outstanding as of the date hereof (the 2003 BANs, the 2004 BANs, the 2005 BANs and the 2007
BANs, collectively, the `BANs"); and
WHEREAS, the Commission deems it advisable to issue the "City of Carmel, Indiana
Redevelopment District Taxable Tax Increment Revenue Refunding Bonds, Series 2008 A" (the
"2008 A Bonds") (or such other designation as the President of the Commission shall approve)
in original principal amount not to exceed Fourteen Million Dollars ($14,000,000) (the
"Authorized Amount") for the purpose of providing for the payment of (i) costs of refunding in
full of the outstanding BANs, and (ii) the costs of selling and issuing the 2008 A Bonds
(collectively, the "Refunding Program"); and
WHEREAS, the projects that were financed by the BAN's are located in or directly serve
and benefit the City Center Area, the 126°i Street Area or the Old Town Area; and
WHEREAS, it would be of public utility and benefit and in the best interests of the
District and its citizens to pay the costs of the Refunding Program and of the sale and issuance of
the 2008 A Bonds, which will provide special benefits to property owners in the District, such
2008 A Bonds to be issued as tax increment revenue bonds of the District as described more
fully herein; and
WHEREAS, the amount of proceeds of the 2008 A Bonds allocated to pay costs of the
Refunding Program, together with estimated investment earnings thereon, does not exceed the
cost of the Refunding Program as estimated by the Commission; and
WHEREAS, under the governing statutes it is necessary to make an appropriation to pay
items to be financed with the 2008 A Bonds, and it has been determined that said appropriation
be made at this time; and
WHEREAS, notice has been given and this date a public hearing has been conducted
regarding such appropriation; as required by Indiana law; and
WHEREAS, all conditions precedent to the adoption of a resolution authorizing the
issuance of the 2008 A Bonds have been complied with in accordance with the applicable
provisions of the Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF CARMEL
REDEVELOPMENT COMMISSION, GOVERNING BODY OF THE DISTRICT, AS
FOLLOWS:
SECTION 1. Authorization for Bonds and Appropriation of Proceeds. In order to
provide financing for the Refunding Program, the District shall borrow money, and the City,
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acting for and on behalf of the District, shall issue the 2008 A Bonds as herein authorized. An
appropriation in an amount not to exceed the Authorized Amount, together with all investment
earnings thereon, shall be made to pay for the governmental purposes to be financed by the 2008
A Bonds, and the funds to meet said appropriation shall be provided out of the proceeds of the
2008 A Bonds in the original principal amount of not to exceed the Authorized Amount and such
investment earnings. Said appropriation shall be in addition to all other appropriations provided
for in the existing budget and.tax levy.
SECTION 2. General Terms of Bonds.
(a) Issuance of 2008 A Bonds. In order to procure said loan for such purposes, the
Commission hereby authorizes the issuance of the 2008 A Bonds, in one or more series, as
described herein. The clerk-treasurer of the City (the "Clerk-Treasurer") is hereby authorized
and directed to have prepared and to issue and sell the 2008 A Bonds as negotiable, fully
registered bonds of the District in an amount not to exceed the Authorized Amount.
The 2008 A Bonds shall be signed in the name of the City, acting for and on behalf of the
District, by the manual or facsimile signature of the Mayor of the City (the "Mayor") and
attested by the manual or facsimile signature of the-Clerk-Treasurer, who shall affix the seal of
the City to each of the 2008 A Bonds manually or shall have the seal imprinted or impressed
thereon by facsimile Or other means. In case any officer whose signature or facsimile signature
appears on the 2008 A Bonds shall cease to be such officer before the delivery of the 2008 A
Bonds, such signature shall nevertheless be valid and sufficient for all purposes as if such officer
had remained in office until delivery thereof. The 2008 A Bonds also shall be, and will not be
valid or become obligatory for any purpose or entitled to any benefit under this resolution unless
and until, authenticated by the manual signature of the Registrar (as defined in Section 4 hereof).
The 2008 A Bonds shall be numbered consecutively from 1 upward, shall be issued in
any denomination, shall be originally dated as of the first day of the month in which the 2008 A
Bonds are sold or as of the date of issuance of the 2008 A Bonds, and shall bear interest payable
semi-annually on January 15 and July 15 beginning of a date determined by the President of the
Commission at the time of the sale of the Bonds, of a fixed or variable rate or rates not exceeding
fifteen percent (15.00%) per annum (the exact rate or rates, or the method of determining any
variable rate, to be determined by negotiation), calculated on the basis of a 360-day year
comprised of twelve 30-day months (or, if such bonds are issued as variable rate bonds, on the
basis of the prevailing convention for such variable rate bonds). The 2008 A Bonds shall be sold
at a discount not exceeding two and one-half percent (2.50%) of the principal amount thereof.
Except as provided below for the issuance of term bonds; the 2008 A Bonds shall mature serially
on January 15 and/or July 15 of the years determined by the President of the Commission at the
time of the sale of the 2008 A Bonds, over a period not exceeding thirty (30) years from the date
of issuance, each serial maturity to be in such principal amount as determined by the President of
Commission, with the advice of the Commission's financial advisor.
All or a portion of the 2008 A Bonds may be aggregated into and issued as one or more
term bonds. The tern bonds will be subject to mandatory sinking fund redemption with sinking
fund payments and final maturities corresponding to the serial maturities described above.
Sinking fund payments shall be applied to retire a portion of the term bonds as though it were a
redemption of serial bonds, and, if more than one term bond of any maturity is outstanding,
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redemption of such maturity shall be made by lot. Sinking fund redemption payments shall be
made in a p'rineipal amount equal to such serial maturities, plus accrued interest to the
redemption date, but without premium or penalty. For all purposes of this resolution, such
mandatory sinking fund redemption payments shall be deemed to be required payments of
principal which mature on the date of such sinking fund payments. Appropriate changes shall be
made in the definitive form of 2008 A Bonds, relative to the form of 2008 A Bonds contained in
this resolution, to reflect any mandatory sinking fund redemption. terms.
(b) Source of Payment. The 2008 A ,Bonds and any bonds ranking on a parity
therewith, as to both principal and interest shall be solely payable from and secured by an
irrevocable pledge of the tax increment revenues derived from the City Center Allocation Area
and deposited in the City Center Allocation Fund, and from the 126`h Street Allocation Area and
deposited in the 126 h Street. Allocation Fund (collectively; the "Tax Increment").
The 2008 A Bonds are not a general obligation of the City or the District. The District
shall not be obligated to pay'the 2008 A Bonds or the interest thereon except from the Tax
Increment, and the 2008 A Bonds shall not constitute an indebtedness of the District or any
municipal corporation or political subdivision of the State of Indiana within the meaning of the
provisions and limitations of the constitution of the State of Indiana.
(c) Payments. All payments of interest on the 2008 A Bonds shall be paid by check
mailed one business day prior to the interest payment date to the registered owners thereof as of
the first (1 st) day of the month of the interest payment date (the "Record Date") at. the addresses
as they appear on the registration and transfer books of the Commission kept for that purpose by
the Registrar (the "Registration Record") or at such other address as is provided to the Paying
Agent (as defined in Section 4 hereof) in writing by-such registered owner. Each registered
owner of One Million Dollars ($1,000,000) or more in principal amount of 2008 A Bonds shall
be entitled to receive interest payments by wire transfer by providing written wire instructions to
the Paying Agent before the Record Date for such payment. All principal payments and premium
payments, if any, on the 2008 A Bonds shall be made upon surrender thereof at the principal
office of the Paying Agent, in any U.S. coin. or currency which on the date of such payment shall
be legal tender for the payment of public and private debts.
Interest on 2008 A Bonds shall be payable from the interest payment date to which
interest has been paid next preceding the authentication date thereof unless such 2008 A Bonds
are authenticated after the Record Date for an interest payment and on or before such interest
payment date in which case they shall bear interest from such interest payment. date, or unless
authenticated on or before the Record Date for the first interest payment date, in which case they
shall bear interest from the original date, until the principal shall be fully paid.
(d) Transfer and Exchange. Each 2008 A Bond shall be transferable or exchangeable
only upon the Registration Record, by the registered owner thereof in writing, or by the
registered owner's attorney duly authorized in writing, upon surrender of such 2008 A Bond
together with a written instrument of transfer or exchange satisfactory to the Registrar duly
executed by the registered owner or such attorney, and thereupon a new fully registered 2008 A
Bond or Bonds in the. same aggregate principal amount, and of the same maturity, shall be
executed and delivered in the name of the transferee or transferees or the registered owner, as the
case may be, in exchange therefor. The costs of such transfer or exchange shall be home by the
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Commission, except for any tax or governmental charges required to be paid in connection
therewith, which shall be payable by the person requesting such transfer or exchange. The City,
the Commission, the Registrar and the Paying Agent may treat and consider the persons in whose
names such 2008 A Bonds are registered as the absolute owners thereof for all purposes
including for the purpose of receiving payment of, or on account of, the principal thereof and
interest and premium, if any, due thereon.
(e) Mutilated. Lost. Stolen or Destroyed Bonds. In the event any 2008 A Bond is
mutilated, lost, stolen or destroyed, the City may execute and the Registrar may authenticate a
new bond of like date, maturity and denomination as that mutilated, lost, stolen or destroyed,
which new bond shall be marked in a manner to distinguish it from the bond for which it was
issued, provided that, in the case of any mutilated bond, such mutilated bond shall first be
surrendered to the Registrar, and in the case of any lost, stolen or destroyed bond there shall be
first furnished to the Registrar evidence of such loss, theft or destruction satisfactory to the
Clerk-Treasurer and the Registrar, together with indemnity satisfactory to their. In the event any
such bond shall have matured, instead of issuing a duplicate bond, the City and the Registrar
may, upon receiving indemnity satisfactory to them, pay the same without surrender thereof.
The City and the Registrar may charge the owner of such 2008 A Bond with their reasonable
fees and expenses in this connection. Any 2008 A Bond issued pursuant to this paragraph shall
be deemed an original, substitute contractual obligation of the City, acting for and on behalf of
the District, whether or not the lost, stolen or destroyed 2008 A Bond shall be found at any time,
and shall be entitled to all the benefits of this resolution, equally and proportionately with any
and all other 2008 A Bonds issued hereunder.
SECTION 3. Terms of Redemption. The 2008 A Bonds may be made redeemable at the
option of the Commission, in whole or in part, in any order of maturities selected by the
Commission and by lot within a maturity, on dates and with premiums, if any, and other terns as
determined by the President.of the Commission with the advice of the Commission's financial
advisor, as evidenced by delivery of the form of 2008.A Bonds to the Clerk-Treasurer.
Notice of redemption shall be mailed by first-class mail to the address of each registered
owner of a 2008 A Bond to be redeemed as shown' on the Registration Record not more than
sixty (60) days and not less than thirty (30) days prior to the date fixed for redemption (or, if the
2008 A Bonds are issued as variable rate bonds, such shorter redemption period as may be
determined by the President of the Commission at the time of the sale of the 2008 A Bonds),
except to the extent such redemption notice is waived by owners of 2008 A Bonds redeemed,
provided, however, that failure to give such notice by mailing, or any defect therein, with respect
to any 2008 A Bond shall not affect the validity of any proceedings for the redemption of any
other 2008 A Bonds. The notice shall specify the date and place of redemption, the redemption
price and the CUSIP numbers, if any, of the 2008,A Bonds called for redemption. The place of
redemption may be determined by the Commission. Interest on the 2008 A Bonds so called for
redemption shall cease on the redemption date fixed in such notice if sufficient funds are
available.at the place of redemption to pay the redemption price on the date so named, and
thereafter, such 2008 A Bonds shall no longer be protected by this resolution and shall not be
deemed to be outstanding hereunder, and the holders thereof shall have the right only to receive
the redemption price.
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All 2008 A Bonds which have been redeemed shall be canceled and shall not be reissued;
provided, however, that one or more new registered bonds shall be issued for the unredeemed
portion of any 2008 A Bond without charge to the holder thereof.
No later than the date fixed for redemption, funds shall be deposited with the Paying
Agent or another paying agent to pay, and such agent is hereby authorized and directed to apply
such funds to the payment of, the 2008 A Bonds or portions thereof called for redemption,
including accrued interest thereon to the redemption date. No payment shall be made upon any
2008 A Bond or portion thereof called for redemption until such bond shall have been delivered
for payment or cancellation or the Registrar shall have received the items required by this
resolution with respect to any mutilated, lost, stolen or destroyed bond.
SECTION 4. Appointment of Registrar and Paving Ate. The Clerk-Treasurer is
hereby appointed to serve as registrar and paying agent or to appoint a registrar and paying agent
for the 2008 A Bonds (together with any successor, the "Registrar" or "Paying Agent'). The
Registrar is hereby charged with the responsibility of authenticating the 2008 A Bonds, and shall
keep and maintain the Registration Record at its office. The Mayor is hereby authorized to enter
into such agreements or understandings with an institution as will enable the institution to
perform the scMces required of the Registrar and Paying Agent. The Clerk-Treasurer is
authorized to pay such fees as an institution may charge for the services it provides as Registrar
and Paying Agent.
The Registrar and Paying Agent may at any time resign as Registrar and Paying Agent by
giving thirty (30) days written notice to the Commission and to each registered owner of the
2008 A Bonds then outstanding, and such resignation will take effect at the end of such thirty
(30) days or upon the earlier appointment of a successor Registrar and Paying Agent by the
Commission. Such notice to the Commission may be served personally or be sent by first-class
or registered mail. The Registrar and Paying Agent may be removed at any time as Registrar and
Paying Agent by the Commission, in which event the Commission may appoint a successor
Registrar and Paying Agent. The Commission shall notify each registered owner of the 2008 A
Bonds then outstanding of the removal of the Registrar and Paying Agent. Notices to registered
owners of the 2008 A Bonds shall be deemed to be given when mailed by first-class mail to the
addresses of such registered owners as they appear on the Registration Record. Any predecessor
Registrar and Paying Agent shall deliver all the 2008 A Bonds, cash and investments related
thereto in its possession and the Registration Record to the successor Registrar and Paying
Agent. At all times, the same entity shall serve as Registrar and as Paying Agent.
SECTION 5. Form of Bonds. The form and tenor of the 2008 A Bonds shall be
substantially as follows, all blanks to be filled in properly and all necessary additions and
deletions to be made prior to delivery thereof:
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R-
UNITED STATES OF AMERICA
STATE OF INDIANA COUNTY OF HAMILTON
CITY OF CARMEL, INDIANA
REDEVELOPMENT DISTRICT TAXABLE TAX INCREMENT REVENUE
REFUNDING BOND, SERIES 2008 A
Maturity Interest Original Authentication
Date Rate Date Date CUS1P
REGISTERED OWNER:
PRINCIPAL SUM:
Dollars ($
City of Carmel, Indiana (the "City"), acting for and on behalf of the City of Carmel
Redevelopment District, for value received, hereby promises to pay to the Registered Owner set
forth above, the Principal Sum set forth above on the Maturity Date set forth above (unless this
bond is subject to and is called for redemption prior to maturity as hereafter provided), and to
pay interest thereon until the Principal Sum shall be fully paid at the Interest Rate per annum
specified above from the interest payment date to which interest has been paid next preceding the
Authentication Date of this bond unless this bond. is authenticated after the first day of the month
of the interest payment'date (the "Record Date") and on or before such interest payment date in
which case it shall bear interest from such interest payment date, or unless this bond is
authenticated on or before [January/July] l 200_ in which case it shall bear interest from the
Original Date, which interest is payable semi-annually on January 15 and July 15 of each year,
beginning on [January/July] 15, 200_ Interest shall be calculated on the basis of a 360-day year
comprised of twelve 30-day months.
This bond and all other bonds of this issue, and any other bonds issued hereafter on a
parity therewith are payable solely from the sources described in the Resolution (as hereinafter
defined), which consist primarily of allocated incremental taxes on certain real property located
in the City Center Redevelopment Allocation Area (the "City Center Area") and the Integrated
126`h Street Corridor Economic Development Allocation Area (the "126`h Street Area") of the
District received by the District in accordance with I.C. 36-7-14-39. The District irrevocably
pledges the Tax Increment (as defined in the Resolution) to the prompt payment of the principal
of and interest on the bonds authorized by the Resolution, of which this is one, and any bonds
ranking on a parity therewith, to the extent necessary for such purposes. Reference is made to
the Resolution for a more complete statement of the revenues from which and conditions under
which this bond is payable, a statement of the conditions on which obligations may hereafter be
issued on parity with this bond, the manner in which the Resolution may be amended and the
general covenants and provisions pursuant to which this bond has been issued.
The principal of and premium, if any, on this bond are payable at the principal office of
(the "Registrar" or "Paying Agent"), in , Indiana. All
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payments of interest on this bond shall be paid by check mailed one business day prior to the
interest payment date to the Registered Owner as of the Record Date at the address as it appears
on the registration books kept by the Registrar or at such other address as is provided to the
Paying Agent in writing by the Registered Owner. All payments of principal of and premium, if
any, on this bond shall be made upon surrender thereof at the principal office of the Paying
Agent in any U.S. coin or currency which on the date of such payment shall be legal tender for
the payment of public and private debts.
This bond is one of an authorized issue of bonds of the District of like original date, tenor
and effect, except as to denomination, numbering, interest rates, redemption terms and dates of
maturity, in the total amount of Dollars ($ ), numbered
consecutively from 1 upward, issued for the purpose. of providing funds for certain
redevelopment projects, and for the purpose of paying incidental expenses to be incurred in
connection therewith and on account of the sale and issuance of bonds therefor, as authorized by
Resolution No. 2008-2 (the "Resolution") adopted by the City of Carmel Redevelopment
Commission (the "Commission") on the 18th day of March, 2008, entitled "Resolution of the
City of Carmel Redevelopment Commission Authorizing Issuance of Bonds for the Purpose of
Refunding Outstanding Bond Anticipation Notes and Paying Costs Related Thereto" (the
"Resolution"), and in accordance with the provisions of Indiana law, including without limitation
Indiana Code 36-7-14, Indiana Code 36-7-25 and other applicable laws, as amended
(collectively, the "Act'), all as more particularly described in the Resolution. The owner of this
bond, by the acceptance hereof, agrees to all the terms and provisions contained in the
Resolution and the Act.
THIS BOND. DOES NOT CONSTITUTE A GENERAL OBLIGATION OR INDEBTEDNESS
OF THE CITY OF CARMEL. THIS BOND IS A LIMITED AND SPECIAL OBLIGATION
OF THE DISTRICT AND IS PAYABLE ONLY OUT OF ALLOCATED INCREMENTAL
TAXES ON CERTAIN REAL PROPERTY AND PERSONAL PROPERTY LOCATED IN
THE CITY CENTER AREA AND THE 126TH STREET AREA AND DEPOSITED IN THE
RESPECTIVE ALLOCATION FUNDS ESTABLISHED BY THE DISTRICT FOR SUCH
AREAS, AS DESCRIBED IN THE RESOLUTION.
The bonds of this issue are redeemable at the option of the Commission, in whole or in
part, in any order of maturities selected by the Commission and by lot within a maturity, at 100%
of face value, plus accrued interest to the date fixed for redemption, on the following dates and at
the following prices:
[INSERT REDEMPTION TERMS]
Notice of such redemption shall be mailed by first-class mail not more than [sixty (60)]
days and not less than [thirty (30)] days prior to the date fixed for redemption to the address of
the registered owner of each bond to be redeemed as shown on the registration record of the
Commission except to the extent such redemption notice is waived by owners of the bond or
bonds redeemed, provided, however, that failure to give such notice by mailing, or any defect
therein, with respect to any bond shall not affect the validity of any proceedings for the
redemption of any other bonds. The notice shall specify the date and place of.redemption, the
redemption price and the CUSIP numbers of'the bonds called for redemption. The place of
redemption may be determined by the Commission. Interest on the bonds so called for
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redemption shall cease on the redemption date fixed in such notice if sufficient funds are
available at the place of redemption to pay the redemption price on the date so named, and
thereafter, such bonds shall no longer be protected by the Resolution and shall not be deemed to
be outstanding thereunder.
This bond is subject to defeasance prior to payment or redemption as provided in the
Resolution.
If this bond shall not be presented for payment or redemption on the date fixed therefor,
the Commission may deposit in trust with the Paying Agent or another paying agent, an amount
sufficient to pay such bond or the redemption price, as the case may be, and thereafter the
Registered Owner shall look only to the funds so deposited in trust for payment and the City
shall have no further obligation or liability in respect thereto.
This bond is transferable or exchangeable only upon the registration record kept for that
purpose at the office of.the Registrar by the Registered Owner in person, or by the Registered
Owner's attorney duly authorized in writing, upon surrender of this bond together with a written
instrument of transfer or-exchange satisfactory to the Registrar duly executed by the Registered
Owner or such attorney, and thereupon a new fully "registered bond or bonds in the same
aggregate principal amount, and of the same maturity, shall be executed and delivered in the
name of the transferee or transferees or the Registered Owner, as the case may be, in exchange
therefor. The City, the Commission, any registrar and any paying agent for this bond may treat
and consider the person in whose name this bond is registered as the absolute owner hereof for
all purposes including for the purpose of receiving payment of, or on account of, the principal
hereof and interest and premium, if any, due hereon.
The bonds maturing on any maturity date are issuable in any denomination.
It is hereby certified and recited that all acts, conditions and things required to be done
precedent- to and in the execution,. issuance and delivery of this bond have been done and
performed in regular and due form as provided by law.
This bond shall not -be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been executed by an authorized representative of the Registrar.
IN WITNESS WHEREOF, the Redevelopment Commission of City of Carmel, State of
Indiana, has caused this bond to be executed in the name of such City, for and on behalf of the
Redevelopment District of said City, by the manual or facsimile signature of the Mayor, and
attested by manual or facsimile signature by the Clerk-Treasurer of said City, and the seal of said
City or a facsimile thereof to be affixed, engraved, imprinted or otherwise reproduced hereon.
CITY OF CARMEL, INDIANA
By:
Mayor
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(SEAL)
ATTEST:
Clerk-Treasurer
It is hereby certified that this bond is.one of the bonds described in the within-mentioned
Resolution duly authenticated by the Registrar.
By:
as Registrar
Authorized Representative
The following abbreviations, when used in the inscription on the face of this bond, shall
be construed as though they were written out in full according to applicable laws or regulations:
TEN. COM. as tenants in common
TEN. ENT. as tenants by the entireties
JT. TEN. as joint tenants with right of survivorship and not as
tenants in common
UN1F. TRANS.
MIN. ACT Custodian
(Cust) (Minor)
under Uniform Transfers to Minors
(State)
Additional abbreviations may also be used although not in the
above list.
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
(Please Print or Typewrite Name and Address
and Social Security or Other Identifying Number) $ principal amount
(must be a multiple of $ ) of the within bond and all rights thereunder, and hereby
irrevocably constitutes and appoints , attorney to transfer the
within bond on the books kept for the registration thereof with full power of substitution in the
premises.
Dated:
Signature Guaranteed:
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NOTICE: Signature(s) must be guaranteed. by
an eligible guarantor institution participating in
a Securities Transfer Association recognized
signature guarantee program.
NOTICE: The signature to this assignment
must correspond with the name as it appears
upon the face of the within bond in every
particular, without alteration or enlargement
or any change whatever.
SECTION 6. Sale of Bonds. The President of the Redevelopment Commission is
authorized to select one or more purchasers of the 2008 A fonds (collectively, the "Purchaser"),
and to enter into a bond purchase contract in customary form with the Purchaser.
After the 2008 A Bonds have been properly sold and executed, the Clerk-Treasurer shall
receive from the purchasers payment for the 2008 A Bonds and shall provide for delivery of the
2008 A Bonds to the purchasers.
The Clerk-Treasurer is hereby authorized and directed to obtain a legal opinion as to the,
validity of the 2008 A Bonds from Barnes & Thornburg, and to furnish such opinion to the
purchasers of the 2008 A Bonds or to cause a copy of said legal opinion to be printed on each
2008 A Bond. The cost of such opinion shall be paid out of the proceeds of the 2008 A Bonds.
SECTION 7. Funds and Accounts.
(a) Use of Bond Proceeds, Refunding Fund. Any accrued interest and capitalized
interest received at the time of delivery of the 2008 A Bonds will be deposited in the Principal
and Interest Account of the Allocation Fund as defined below and applied to payments on the
2008 A Bonds on the first interest payment date. If recommended by the financial advisor to the
Commission, an amount equal to the Debt Service Reserve Requirement (defined below) may be
deposited into the Reserve Account of the Allocation Fund. The remaining proceeds received
from the sale of the 2008 A Bonds shall be deposited in the fund hereby created and designated
as the "City of Carmel Redevelopment District 2008 A Bonds Refunding Fund" (the "Refunding
Fund"). The proceeds deposited in the Refunding Fund, together with all investment earnings
thereon, shall be expended by the Commission only for the purpose of paying all remaiiung
principal, interest and redemption premium (if any) due on all of the outstanding BANs and costs
of issuance of the 2008 A Bonds. Any balance remaining in the Refunding Fund after retirement
of all outstanding BANS which is not required to meet unpaid obligations incurred in connection
therewith and on account of the sale and issuance of the 2008 A Bonds may be (i) used to pay
debt service on the 2008 A Bonds, or (ii) otherwise used as permitted by law.
(b) Allocation Fund. The City Center Allocation Fund and the 126`h Street Allocation
Fund are hereby jointly designated as the "City Center/126h Street Allocation Fund" (the
"Allocation Fund"), which shall consist of a General Account, a Principal and Interest Account
and a Reserve Account. All allocated incremental taxes received on real property located in the
City Center Allocation Area and the 126'4 Street Allocation Area and deposited in the City
Center/126`h Street Allocation Fund in accord with I.C. 36-7-14-39 ("Tax Increment") shall be
deposited in the General Account. One day prior. to each principal and interest payment date on
the 2008 A Bonds, there shall be deposited in the Principal and Interest Account an amount of
money from the General Account, to the extent of available funds in the General Account, which
together with any money contained in the Principal and Interest Account is sufficient to pay the
principal and'interest on the 2008 A Bonds, and any bonds issued on a parity therewith due on
the following interest and/or principal payment date. No such deposit need be made into the
Principal and Interest Account if the amount contained therein is sufficient to pay the principal
and the interest due thereon. All money in the Principal and Interest Account shall be used and
withdrawn solely for the purpose of paying the interest on and the principal of the 2008 A Bonds,
and any bonds issued on a parity therewith as it shall become due and payable to the extent it is
required therefor, including accrued interest on any such obligations purchased or redeemed
prior to maturity.
If at the time of the sale of the 2008 A Bonds it is determined by the President of the
Commission, with the advice of the Commission's financial advisor, to establish a Reserve
Account for the 2008 A Bonds, then after making the required deposits into the Principal and
Interest Account, there shall be set aside from the Allocation Fund and deposited in the Reserve
Account from the General Account an amount of money that shall be required to maintain the
Reserve Account in the full amount of the Debt Service Reserve Requirement (as defined
below). No deposit need be made in the Reserve Account so long as there shall be on deposit
therein a sum equal to the amount determined by the financial advisor to be required to
adequately secure the 2008 A Bonds (the "Debt Service Reserve Requirement"). All money in
the Reserve Account shall be used and withdrawn by the District solely for the purpose of
making deposits into the Principal and Interest Account, in the event of any deficiency at any
time in such account, or for the purpose of paying the interest on or principal of or redemption
premiums, if any, on the 2008 A Bonds, or any additional parity bonds secured by the Reserve
Account, in the event that no other money is lawftilly available therefor. Any amount in the
Reserve Account in excess of the Debt Service Reserve Requirement shall be withdrawn from
the Reserve Account and deposited in the Principal and Interest Account. Money in the Reserve
Account shall also be available to make the final payments of interest and principal on the 2008
A Bonds, and any additional parity bonds secured by the Reserve Account.
(c) Excess Funds. After meeting requirements of subsection (b), money in the
Allocation Fund in excess of that amount (the "Excess Funds") may be used for any purpose
permitted under the Act and the Plan that benefits the City Center Area or the 126ri Street Area
or deposited into the funds of the respective taxing units entitled thereto, or during the time a part
of the Area is located in an enterprise zone created under I.C. 4-4-6.1, such Excess Funds shall
be deposited in a special fund created for the enterprise zone in accord with I.C. 36-7-14-39(g).
(d) Investment of Funds. All money available hereunder for the payment of debt
service on bonds shall be held in trust for the benefit of the holders of the bonds and shall be
applied, used and withdrawn in accordance with this Section 7. The proceeds of the funds and
accounts described below shall be deposited with a legally qualified depository or depositories
for funds of the Commission as now provided-by law and shall be segregated.and kept separate
and apart from all other funds of the Redevelopment Department and the Commission and may
be invested in accordance with applicable provisions of Indiana law.
SECTION 8. Defeasance. If, when the 2008 A Bonds or any portion thereof shall have
become due and payable in accordance with their terms or shall have been duly called for
redemption or irrevocable instructions to call the 2008 A Bonds or any portion thereof for
redemption have been given, and the whole amount of the principal, premium, if any, and the
interest so due and payable upon such bonds or any portion thereof then outstanding shall be
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paid, or (i) cash, or (ii) direct non-callable obligations of or unconditionally guaranteed by
(including obligations issued or held in book entry form on the books ot) the U.S. Department of
the Treasury, and to the extent permitted by Indiana law and by each rating agency maintaining a
rating on the 2008 A Bonds, Refcorp interest strips, CATS, TIGRS, STRPS, defeased municipal
bonds or other investments rated in the highest category for such obligations by Standard &
Poor's Corporation or Moody's Investors Service (or any combination thereof), the principal of
and the interest on which when due without reinvestment will provide sufficient money, or (iii)
any combination of the foregoing, shall be held irrevocably in trust for such purpose, and
provision shall also be made for paying all fees and expenses for the payment, then and in that
case the 2008 A Bonds or such designated portion thereof shall no longer be deemed outstanding
or secured by this resolution.
SECTION 9. Amendments. Subject to the terms and provisions contained in this
section, and not otherwise, the owners of not less than sixty-six and two-thirds percent (66-2/3%)
in aggregate principal amount of the 2008 A Bonds then outstanding shall have the right, from
time to time, to consent to and approve the adoption by the Commission of such resolution or
resolutions supplemental hereto as shall be deemed necessary or desirable by the Commission
for the purpose of amending in any particular any of the terms or provisions contained in this
resolution, or in any supplemental resolution; provided, however, that nothing herein contained
shall permit or be construed as permitting:
(a) An extension of the maturity of the principal of or interest or premium, if any, on
any 2008 A Bond or an advancement of the earliest redemption date on any 2008 A Bond,
without the consent of the holder of each 2008 A Bond so affected; or
(b) A reduction in the principal amount of any 2008 A Bond or the redemption
premium or rate of interest thereon, or a change in the monetary medium in which such amounts
are payable, without the consent of the holder of each 2008 A Bond so affected; or
(c) A preference or priority of any 2008 A Bond over any other 2008 A Bond,
without the consent of the holders of all 2008 A Bonds then outstanding; or
(d) A reduction in the aggregate principal amount of the 2008 A Bonds required for
consent to such supplemental resolution, without the consent of the holders of all 2008 A Bonds
then outstanding.
If the Commission shall desire to obtain any such consent, it shall cause the Registrar to
mail a notice, postage prepaid, to the addresses appearing on the Registration Record. Such
notice shall briefly set forth the nature of the proposed supplemental resolution and shall state
that a copy thereof is on file at the office of the Registrar for inspection by all owners of the 2008
A Bonds. The Registrar shall not, however, be subject to any liability to any owners of the 2008
A Bonds by reason of its failure to mail such notice, and any such failure shall not affect the
validity of such supplemental resolution when consented to and approved as herein provided.
Whenever at any time within one year after the date of the mailing of such notice, the
Commission shall receive any instrument or instruments purporting to be executed by the owners
of the 2008 A Bonds of not less than sixty-six and two-thirds per cent (66-2/3%) in aggregate
principal amount of the 2008 A Bonds then outstanding, which instrument or instruments shall
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refer to the proposed supplemental resolution described in such notice, and shall specifically
consent to and approve the adoption thereof in substantially the form of the copy thereof referred
to in such notice as on file with the Registrar, thereupon, but,not otherwise, the Commission may
adopt such supplemental resolution in substantially such form, without liability or responsibility
to any owners of the 2008 A Bonds; whether or not such owners shall have consented thereto.
No owner of any 2008 A Bond shall have any right to object to the adoption of such
supplemental resolution or to object to any of the terms and provisions contained therein or the
operation thereof, or in any manner to question the propriety of the adoption thereof, or to enjoin
or restrain the Commission or its officers from adopting the same, or from taking any action
pursuant to the provisions thereof. Upon the adoption of any supplemental resolution pursuant to
the provisions of this section, this resolution shall be, and shall be deemed, modified and
amended in accordance therewith, and the respective rights, duties and obligations under this
resolution of the Commission and the City and all owners of 2008 A Bonds then outstanding
shall thereafter be determined, exercised and enforced in accordance with this resolution, subject
in all respects to such modifications. and amendments.
Notwithstanding anything contained in the foregoing provisions of this resolution, the
rights, duties and obligations of the Commission and the City and of the owners of the 2008 A
Bonds; and the terns and provisions of the 2008 A Bonds and this resolution, or any
supplemental resolution, may be modified or amended in any respect with the consent of the
Commission and the consent of the owners of all the 2008 A Bonds then outstanding.
Without notice to or consent of the owners of the 2008 A Bonds, the Commission may,
from time to time and at any time, adopt such resolutions supplemental hereto as shall not be
inconsistent with the terns and provisions hereof (which supplemental resolutions shall
thereafter form a part hereof), ,
(a) To cure any ambiguity or formal defect or omission in this resolution or in any
supplemental resolution; or
(b) To grant to or confer upon the owners of the 2008 A Bonds any additional rights,
remedies, powers, authority or security that may lawfully be granted to or conferred upon the
owners of the 2008 A Bonds; or
(c) To procure a rating on the 2008 A Bonds from a nationally recognized securities
rating agency designated in such supplemental resolution, if such supplemental resolution will
not adversely affect the owners of the 2008 A Bonds; or
(d) To obtain or maintain bond insurance with respect to the 2008 A Bonds; or
(e) To provide for the refunding or advance refunding of the 2008 A Bonds; or
(f) To make any other change which, in the determination of the Commission in its
sole discretion, is not to the prejudice of the owners of the 2008 A Bonds.
SECTION 10. Additional Bonds. The Commission reserves the right to authorize and
issue additional bonds (the "Parity Bonds"), payable out of the Tax Increment, ranking on a
parity with the 2008 A Bonds authorized by this Resolution and payable ratably from the Tax
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Increment for the purpose of raising money for future property acquisition, economic
development or redevelopment in accordance with the Plan, or to refund such obligations,
subject to the following conditions:
(a) All interest on and principal of all bonds payable from the Tax Increment shall
have been paid to date in accordance with the terms thereof, provided, this condition shall be
deemed satisfied in any required amount-is to be provided from the proceeds of the Parity Bonds
or other funds of the Commission.
(b) As of the time of issuance of the Parity Bonds, the balance in the Reserve
Account (if required and established) shall be at least equal to the Debt Service Reserve
Requirement for the 2008 A Bonds and all then outstanding bonds ranking on a parity therewith
which are secured by the Reserve Account, provided, this condition shall be deemed satisfied if
any required amount is to be provided from the proceeds of the Parity Bonds or other funds of
the Commission.
(c) The Commission shall have received a certificate prepared by an independent
certified *public accountant or an independent financial consultant (the "Certifier") certifying that
the Tax Increment estimated to be received in each succeeding year, adjusted as provided below,
is estimated to be equal to at least 125% (or such higher percentage as is determined by
certification of the President of the.Commission at the time of the sale of the Bonds upon advice
of the Commission's financial advisor) of the principal and interest requirements for each
respective year during the term of the bonds with respect to the 2008 A Bonds, and any Parity
Bonds. In estimating the Tax Increment to be received in any future year, the Certifier shall base
the calculation on assessed valuation actually assessed or to be assessed as of the assessment date
immediately preceding the issuance of the Parity Bonds, adjusted for current and future
reductions of property tax abatements granted to taxpayers in the Area without regard to any
assumed increases in property values or property tax rates; provided, however, the Certifier may
include in the calculation of Tax Increment to be received in the Area, Tax Increment based on
the addition of new assessed value estimated to be derived from real property under construction
in the Area or personal property in the process of being installed in the Area as of the date of
issuance of the Parity Bonds, even though not yet assessed, to the extent that the Certifier
believes the amount to be reasonable.
The Commission shall approve and confirm the findings and estimates set forth in the above-
described certificate in any supplemental resolution authorizing the issuance of the Parity Bonds.
SECTION 11. Approval of Official Statement and Continuing Disclosure Undertaking.
If legally required as part of a public offering of the 2008 A Bonds, the Clerk-Treasurer is hereby
authorized to deem final an official statement with respect to the 2008 A Bonds, as of its date, in
accordance with the provisions of Rule 15c2-12 of the United States Securities and. Exchange
Commission, as amended (the "SEC Rule"), subject to completion as permitted by the SEC Rule,
and the Commission further authorizes the distribution of the deemed final official statement,
and the execution, delivery and distribution of such document as further modified and amended
with the approval of the Clerk-Treasurer in the form of a final official statement. The officers of
the Commission and the City are further authorized to approve the form and distribution of any
other offering materials that may be recommenced by the Commission's financial advisor in
connection with a private placement of the 2008 A Bonds.
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In order to assist any underwriter of the 2008 A Bonds in complying with paragraph
(b)(5) of the SEC Rule by undertaking to make available appropriate disclosure about the
Commission and the City and the 2008 A Bonds to participants in the municipal securities
market, the Commission may, in accordance with the SEC Rule, unless excluded from the
applicability of the SEC Rule or otherwise exempted from the provisions of paragraph (b)(5) of
the SEC Rule, execute and deliver any continuing disclosure contract. The execution and
delivery by the Commission of the continuing disclosure contract, and the performance by the
Commission of its obligation thereunder by or through any employee or agent of the
Commission or the City, are hereby approved.
SECTION 12. Other Action. The Mayor and the Clerk-Treasurer of the City and the
President, Vice President and Secretary of the Commission may take such other actions or
deliver such other certificates and documents needed for the Projects or the financing as they
deem necessary or desirable in connection therewith. Specifically; and not by way of limitation,
such officers are authorized to secure bond ratings, bond insurance, letters of credit, surety bonds
or other forms. of credit enhancement for the 2008 A Bonds upon the recommendation of the
Commission's financial advisor.
SECTION 13. No Conflict. All resolutions and orders or parts thereof in conflict with
the provisions of this resolution are to the extent of such conflict hereby repealed. After the
issuance of the 2008 A Bonds and so long as any of the 2008 A Bonds or interest or premium, if
any, thereon remains unpaid, except as expressly provided herein, this resolution shall not be
repealed or amended in any respect which will adversely affect the rights of the holders of the
2008 A Bonds, nor shall tiie Commission adopt any law or resolution which in any way
adversely affects the rights of such holders.
SECTION 14.. Severability. If any section, paragraph or provision of this resolution shall
be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such
section, paragraph or provision shall not affect any of the remaining provisions of this resolution.
SECTION 15. Non-Business Days. If the date of making any payment or the last date for
performance of any act or the exercising of any right, as provided in this resolution, shall be a
legal holiday or a day on which banking institutions in the City or the jurisdiction in which the
Registrar or Paying Agent is located are typically closed, such payment may be made or act
performed or right exercised on the next succeeding day not a legal holiday or a day on which
such banking institutions are typically closed, with the same force and effect as if done on the
nominal date provided in this resolution, and no interest shall accrue for the period after such
nominal date.
SECTION 16. Interpretation. Unless the context or law clearly requires otherwise,
references herein to statutes or other laws include the same as modified, supplemented or
superseded from"time to time.
SECTION 17. Effectiveness. This resolution shall be in full force and effect from and
after its passage.
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Adopted this 18th day of March, 2008.
CITY OF CARMEL REDEVELOPMENT
COMMISSION
Pf sident
Vice President
-Z
Secretary
Member
Mean er
j
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CERTIFICATE TO CLERK-TREASURER OF CITY OF CARMEL, INDIANA
This is to certify that attached is a true copy of Resolution No. 2008-2 adopted by the
City of Carniel Redevelopment Commission at a meeting held March 18, 2008.
Secretary, City of armel Redevelopment
Commission
INDS01 RDD 1022866v1
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