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HomeMy WebLinkAboutSupporting Information 04-30-10 0 Re: Plan Commission HOWARD ASSOCIATES ��G R r ra esolutions; ATTORNEYS FOR HAMILTON COUNTY ,r S Supporting Information AND THE CITY OF NOBLESVILLE oe MICHAEL A. HOWARD DARREN J. MURPHY MEMORANDUM 4 ti. "CU EIVED C19 o APR 3 TO: Hamilton County Redevelopment Commission 201 FROM: Michael A. Howard DATE: April 12, 2010 SUBJECT: Interlocal Agreements with the City of Carmel concerning 96th/421 TIF District and Thomson Consumer Electronics TIF District Please consider this as an update on an Interlocal Agreement with the City of Carmel concerning the above two projects. The Interlocal Agreement concerns two TIF districts. The first is the Thomson District which is already located within the City of Carmel. The second is the 96th/421 District which will be part of the Carmel annexation this summer. Under the law, a Redevelopment Commission can only expend funds from a TIF district which has been annexed by a City, with the consent of the annexing entity. Conversely, after annexation, the City cannot use funds from the TIF district without the consent of the entity which created the district (the County). During the last several months, the Airport Authority for the Thomson District, and the County Highway Department have been working with Carmel concerning agreements for these districts. We would propose an Interlocal Agreement which would generally provide the following terms for the two districts as follows: THOMSON TIF DISTRICT This district has existing cash of $5,849,000. This cash came from various sources arising out of the issuance of bonds in 2004 and 2005, and from reimbursement of Federal funds from the FAA. In 2005, the Redevelopment Commission amended the Redevelopment Plan for this district, finding that two major projects outside the district served and benefited the district. The first project was Illinois Street from 106th Street north, and parallel to Meridian Street. The second project was to provide funds for the expansion, planning, and infrastructure at the Airport. •894 LOGAN STREET, NOBLESVILLE, INDIANA 48060 (317) 773 -4212 •(FAX) (817) 776 -2369• The Redevelopment Commission, with the consent of Carmel and Carmel's agreement to provide a COIT backup for the bonds, issued bonds in 2005 and 2006, which funded substantially all of the costs of the existing Illinois Street project north of 111th Street. The last remaining section of Illinois Street is from approximately 111th Street to 106th Street. At the present time, Carmel needs funds for land acquisition and design within the district. This acquisition will allow the existing section of Illinois Street within the district to move to the west and line up with the northern section at 106th Street. The vacation of the existing Illinois Street will also provide opportunities for the expansion of the Heart Hospital, resulting in more future increment from the district. At the present time, this district is anticipated to receive $1,946,000 in TIF in 2010. This compares with $1,810,000 of annual debt service. There are several potential developments in the district which could increase increment in subsequent years. At this time, there is not enough additional revenue projected to issue bonds to fund any projects. Therefore, the Agreement only addresses the use of existing cash. The Airport Authority proposes that $3,849,000 be used for the local match for an existing ramp project primarily funded by the FAA; the extension of municipal water to the site; the construction of a mound system to replace the existing septic system which is substandard; and to relocate the fuel systems, including removal of tanks and environmental clean -up. Upon completion of the projects, the Authority anticipates there will be substantial funds left to reimburse the County for part of its acquisition costs. The balance of $2,000,000 would be available for Carmel to use for land acquisition, design, and to fund part of the construction costs of the last section of Illinois Street. In future years the excess increment would be used for completion of Illinois Street and other projects as mutually agreed between the City and the County. 96TH/421 TIF DISTRICT In working with the City of Carmel, there are six major projects which can be funded. The first project is the County's current project to construct improvements to parts of 96th Street, including a round -about at North Augusta and 96th Street; round -about at Shelborn Road and 96th Street; and the extension of the existing North Augusta from 96th Street north into the existing retail district. This project has estimated remaining costs of $4,700,000. The project has been bid, the contract has been signed and clearing is moving forward. All of these costs will be paid from cash which has accumulated in the district. r The last five projects are shown on the attached map and briefly described in the attached chart. Projects 1 and 2 have been bid, and are awaiting funding from this Agreement. Project 3 is anticipated to be constructed later this year. Project 4 is anticipated to be bid early in 2011, with the long awaited 96th Street and Towne Road round -about or Project 5 being bid and construction beginning in 2011. The funding of Projects 1 through 5 would be funded through the issuance of lease rental bonds in two series. The anticipated schedule of bond payments are shown on Page 6 of the Hamilton County Redevelopment Road Improvement Project Financing Plan, which is attached. These projects will require an amendment to the Development Plan for this district and we are in the process of preparing that Plan. The best news about this project is that it gives the County the ability to move forward on parts of western 146th Street. You can see that the debt schedule allows the accumulation of almost $4,000,000 in remaining TIF in 2010 and 2011. It allows for $1,000,000 per year thereafter. Under the proposed Interlocal Agreement, all of the extra increment will be designated to the County to cover land acquisition, construction inspection cost, and the Federal match funds for the four sections of western 146th Street, which have been substantially designed. The County Highway Department believes funding of the first section from the existing terminus through, and including, the Ditch Road intersection could be available in 2012. The land acquisition, local match, and other local costs for the first section will be approximately $4,000,000. The additional amounts set out in the "annual TIF remaining" would be captured for these projects. Lastly, the Interlocal Agreement would require Carmel to pledge an annual amount of COIT to backup the 2010 and 2011 bonds.