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HomeMy WebLinkAboutCRC-2011-8 COPs Transaction Agreement/CRC/PedcorCITY OF CARMEL REDEVELOPMENT COMMISSION RESOLUTION NO. 1_ -2011 WHEREAS, The City of Carmel Redevelopment Commission ( "CRC ") desires to enter into that certain Project Agreement (Parcel 5 Remainder /Parcels 4 & 11) with affiliates of Pedcor Companies (the "RPA "); WHEREAS, CRC desires to enter into that certain COPs Transaction Agreement with affiliates of Pedcor Companies (the "CTA "); WHEREAS, the CTA contemplates the execution of installment contracts pursuant to which CRC shall acquire the parking garage currently located on Parcel 5 (the "installment Contracts "); WHEREAS, the RPA, the CTA, and the Installment Contracts, collectively, are the "Agreements "; and WHEREAS, the execution of the Agreements, and the satisfaction of the obligations of the parties under the Agreements, will fulfill certain objectives of CRC, including: (a) "taking out" currently existing TIF bonds issued to finance construction of parking garages on Parcels 2, 5, and 12; (b) "recapturing" increment generated by current and /or future improvements on Parcels 2, 4, 5, 11, and 12; (c) being released from all obligations to fund public improvements, except to the extent supported by available increment; and (d) the ability to leverage increment to finance public improvements; NOW, THEREFORE, BE IT RESOLVED THAT: 1. CRC hereby approves the execution of: (a) the Agreements; together with (b) all certificates, documents, and /or instruments either: (1) contemplated by the Agreements; or (i) reasonably required to satisfy the obligations of CRC under the Agreements (all of the foregoing, collectively, the "CRC Documents "). 2. The President of CRC (the "President ") hereby is authorized to execute the CRC Documents, which CRC Documents shall be on terms and conditions: (a) consistent with this Resolution; and (b) otherwise as determined by the President to be necessary or appropriate. The Vice President of CRC hereby is authorized to execute any of the CRC Documents in the President's absence. Passed by the City of Carmel Redevelopment Commission this 1st day of November, 2011, by a vote of _ LA ayes and ( nays. CITY OF CARMEL REDEVELOPMENT COMMISSION Z:IDocurnents \Shoup, Jenny \City of Carmel \Resolutions \Loan Program - installment Contracts\Approval -COPS Transaction.wpo HARRIS COP'S TRANSACTION SUMMARY SHEET Parcel 2 Office Pedcor Square Parcel 2 Residential Residential units south of Reflecting Pool Parcel 4 Undeveloped parcel at NW corner of Rangeline Rd and City Center Dr Parcel 5 City Center Parcel 11 Undeveloped parcel west of Parcel 4 and east of Monon Trail Parcel 12 Indiana Design Center Parking Garage existing underground parking garage on Parcel 5 Outstanding Bonds TIF bonds issued to finance construction of parking garages on Parcel 2 Office, Parcel 5, and Parcel 12 with an approximate aggregate outstanding principal balance of$22,500,000 Existing Increment increment generated by existing buildings on Parcel 2 Office, Parcel 5, and Parcel 12 Future Increment increment that will be generated by future buildings on Parcel 2 (5th office building), Parcel 2 Residential (additional residential units), Parcel 4, Parcel 5 (further phases of City Center project), and Parcel 11 "Big TIF" Increment increment generated from consolidated allocation areas and reflected on Umbaugh projections (i.e., increment that funds CRC obligations and projects) Installment Contracts Primary Contract and Secondary Contract Primary Contract an installment contract providing for: (a) CRC to purchase major portion of Parking Garage; (b) a purchase price of$17,000,000.00, payable in installments over term of Harris COPs; and (c) such installments to "match up" with debt service payable pursuant to Harris COPs Secondary Contract an installment contract providing for: (a) CRC to purchase remainder of Parking Garage; (b) a purchase price of approximately $5,500,000, payable in installments over term of Secondary COPs; and (c) such installments to "match up" with debt service payable pursuant to Secondary COPs Harris COP's certificates of participation to be issued in Primary Contract and purchased by Harris Bank pursuant to attached term sheet(as Facility 2) Secondary COP's certificates of participation to be issued in Secondary Contract and purchased by a Pedcor affiliate Public Improvements public improvements that may include parking garages, building connectors, streets (extensions of Veteran's Way and Monon Green Blvd), sidewalks, and streetscape on Parcel 4, remainder of Parcel 5, and Parcel 11 Senior Debt outstanding TIF bond (shown on Umbaugh projections) JPO's outstanding installment contracts and similar long-term obligations of CRC (shown on Umbaugh projections) Transaction Steps ✓ CRC and Pedcor affiliates enter into COP's Transaction Agreement and Project Agreement (Parcel 5 Remainder/Parcels 4 &11) (copies provided to CRC Finance Committee) ✓ CRC and Pedcor affiliate enter into Installment Contracts to purchase Parking Garage ✓ Harris COP's and Secondary COP's are issued and purchased ✓ Proceeds from sale of Harris COP's and Secondary COP's pay to"take out" Outstanding Bonds in full ✓ All rights and claims of Pedcor affiliates, holders of Outstanding Bonds, and their lenders/assignees in and to all Existing Increment and Future Increment are released ✓ All obligations of CRC to fund Public Improvements (other than through "extra" Existing Increment and through Future Increment)are released ✓ Result at this point: (a) all Outstanding Bonds have been "taken out"; (b) CRC has "recaptured" all Existing Increment and Future Increment; (c) CRC has been released from all obligations to fund Public Improvements not supported by increment; and (d) CRC is in position to leverage "extra" Existing Increment and Future Increment to finance additional Public Improvements ✓ Pedcor Bankcorp affiliate provides a "swap" at 3.5% that "locks in" debt service on Harris Bank COP's through 2018, and that, in turn "locks in" Primary Contract installment payments ✓ Existing Increment: (a) is pledged to secure installment payments under Primary Contract; and (b) funds Primary Contract installment payments that, in turn, pay debt service on Harris COP's ✓ Result at this point (based on attached increment projections): (a) from 2012 through 2013, Existing Increment produces approximately $780,000 of"extra"increment(more increment than needed to fund Primary Contract installment payments); (b) in 2014, Existing Increment is "short" approximately $20,000 of funding Primary Contract installment payments; and (c) after 2014 "covers" Primary Contract installment payments (at a DSCR ranging from approximately 1.0 to 1.25) ✓ After Existing Increment is applied to fund Primary Contract installment payments that, in turn, pay debt service on Harris COP's, second priority is to establish a $1,000,000 debt service reserve ✓ If Existing Increment is insufficient to fund Primary Contract installment payments, then payments would be funded from debt service reserve (projected to be$780,000 as of 2014) ✓ If Existing Increment and debt service reserve is insufficient to fund Primary Contract installment payments, then payments would be funded from "Big TIF" Increment(subordinate to Senior Debt and JPO's) ✓ Result at this point: (a) based on attached increment projections, Existing Increment and debt service reserve should be more than sufficient to fund Primary Contract installment payments; (b) accordingly, Harris COP's should have no effect on DSCR's shown on Umbaugh projections; but(c) if Existing Increment and debt service reserve is insufficient to fund Primary Contract installment payments, then there would be a "call" on "Big TIF" Increment (subordinate to Senior Debt and JPO's), and DSCR's shown on Umbaugh projections would be effected adversely ✓ Note that: (a) CRC is obligated to maintain a 1.25 DSCR after JPO debt service is paid to insure that sufficient"Big TIF" Increment will be available to fund Primary Contract installment payments, if necessary; and (b) this claim on "Big TIF" Increment represents a 3`d priority tranche (1St priority trance is Senior Debt, 2"d priority tranche covers JPO's, and 3rd priority tranche includes"contingent"claims for Harris COP's and Keystone Bonds) ✓ Secondary Contract installment payments and, in turn, debt service on Secondary COP's are paid on a "deeply subordinated" basis described on attached Exhibit A ✓ When plans for a new building on Parcel 4, remainder of Parcel 5, or Parcel 11 are complete, Developer: (a) provides to CRC an estimate of Future Increment that will be generated by that building; and (b) obtains Umbaugh's approval of such estimated Future Increment ✓ CRC leverages 100% of approved estimated Future Increment to obtain financing for Public Improvements, and: (a) if actual Future Increment exceeds such approved estimate, then CRC leverages actual Future Increment to finance Public Improvements; and (b) if there is "extra" Existing Increment, then CRC leverages "extra" Existing Increment to finance Public Improvements Objectives Achieved ✓ all Outstanding Bonds have been "taken out", freeing Pedcor affiliates to proceed with City Center project ✓ CRC has "recaptured"all Existing Increment and Future Increment, with an addition of approximately$750,000 over 2012-13 to support its DSCR ✓ CRC has been released from all obligations to fund Public Improvements not supported by available increment ✓ CRC is in position to leverage "extra" Existing Increment and Future Increment to finance additional Public Improvements — which CRC can leverage at$.93 on each $1.00, as apposed to developers now customarily being able to leverage $.03-.33 on each $1.00 Exhibit A Secondary COPs shall be issued on following terms and conditions. (a) If Secondary COPs are: (i)tax exempt, interest shall accrue at a fixed rate equal to rate quoted by Harris for tax exempt COP's; and (ii) taxable, interest shall accrue thereon at a fixed rate equal to rate quoted by Harris for taxable COP's. (b) Term of Secondary COPs ends on December 31, 2036. (c) Debt service payments on Secondary COPs shall be interest only during Secondary COPs Initial Period, but, during portion of Secondary COPs Initial Period ending on December 31, 2013, no payments of debt service shall be required(with unpaid amounts accruing and adding to outstanding principal balance). (d) After expiration of Secondary COPs Initial Period, debt service payments based on an amortization period ending on December 31, 2036. (e) Secondary COPs shall reflect that: (i) during Secondary COPs Initial Period and Secondary COPs Second Period, use of Existing Increment on a second priority basis (after $1,000,000 DSCR reserve has been established) shall be only funds available for payment of Secondary Contract installment payments, with any remaining amounts accruing and adding to outstanding principal balance; (ii) upon expiration of Secondary COPs Second Period: (A) outstanding principal balance of Secondary COPs (which may have been increased prior periods due to accrual) shall be re-amortized over a five-year period; and (B) payments of debt service on Secondary COPs shall be adjusted to reflect such re-amortization, with result being that full amount of Secondary COPs is paid in full at end of Secondary COPs Final Period; and (v) during Secondary COPs Final Period (but not Secondary COPs Initial Period or Secondary COPs Second Period), if use of Existing Increment on a second priority basis is insufficient to pay any Secondary Contract installment payment, then shortfall shall be payable out of "Big TIF"Increment remaining after payment of Senior Debt,JPO's,and Primary Contract installment payments. Secondary COPs Initial Period shall mean period ending on December 31, 2018. Secondary COPs Second Period shall mean period: (a) beginning upon expiration of the Secondary COPs Initial Period; and (b)ending on December 31,2029. Secondary COPs Final Period shall mean period: (a) beginning upon expiration of Secondary COPs Second Period; and (b)ending on December 31, 2036. Carmel Redevelopment Commission Summary of Terms and Conditions September 30,2011 This Term Sheet is a statement of indicative terms only,and is provided to facilitate additional discussion. It is not an offer of commitment by BMO Harris Bank. The extension of this facility is subject to formal credit approval and execution of required documentation satisfactory to the Bank and its counsel. The terms and conditions contained in this proposal are valid through October 30,2011. Borrower: Facility 1:Carmel Community Development Corporation("4CDC") Facility 2:Village Financial,LLC("Village Financial") Both Facility 1 and Facility 2 are secured by obligations of the Cannel Redevelopment Commission (the "Commission") Lender: BMO Harris Bank N.A.(the"Bank") Facilities: Facility 1:$12,500,000 Installment Loan Facility 2:$17,000,000 Term Loan or,to the extent available,tax-exempt Certificates of Participation Put Option/Optional Each Facility will provide a put option whereby the Bank may put the loan or Redemption: certificates to the Commission on the date that is 7 years from closing. The Facilities are redeemable prior to maturity at the option of the Commission upon 6 months written notice to the Bank. Maturity: Each Facility will provide a put option whereby the Bank may put the loan or certificates to the Commission on the date that is 7 years from closing. Amortization: Interest only payments will be required for years one and two of the Facilities. Principal plus interest payments will be required starting in year three. Amortization of principal will be based on a 20-year amortization schedule. Any outstanding principal balance will be due upon exercise of the put option. Security:Applicable to The Bank acknowledges that the Excess TIF Revenues will not be statutorily Facilities I &2 pledged to the Facilities, but rather will be an enforceable contractual obligation of the Commission. See below for Financial Covenants related to the Excess TIF. All Commission debt is further supported by reserve lines of credit. Representations& Usual and customary representations and warranties for facilities of this type, Warranties: including but not limited to absence of material adverse change,absence of material litigation,absence of default or potential default and continued accuracy of representations. 1 Conditions Precedent: Usual and customary conditions precedent to extension of credit for facilities of this type,including absence of default or unmatured default,absence of material litigation and lack of material litigation and lack of material adverse change from the Commission's financial condition and operations as reflected in the financial statements of the Borrower as of 12/31/2010. Additional conditions precedent to the issuance of the Facilities will include: 1. The Bank not becoming aware of any information affecting any of 4CDC,Village Financial or the Commission or this transaction which is inconsistent in a material manner with what has been previously disclosed to the Bank and such information is true and correct in all material aspects. 2. The absence of any situation occurring which would,in the opinion of the Bank,materially adversely affect any of 4CDC,Village Financial or the Commission or this transaction. 3. Each of 4CDC,Village Financial and the Commission currently maintains all necessary approvals,orders,authorizations,consents, licenses,certificates and permits from all applicable governmental authorities,which are or may be required to operate its facilities. 4. Each of 4CDC,Village Financial and the Commission shall have delivered other customary closing documentation,including,without limitation,legal opinions of counsel to each acceptable to the Bank. Covenants: Delivery of financial statements,reports,accountants' letters,projections, officers'certificates and other information requested by the Bank;payment of other obligations;continuation of business and maintenance of existence and material rights and privileges;compliance with laws and material contractual obligations;maintenance of property and insurance;maintenance of books and • records;right of the Bank to inspect property and books and records;notices of defaults,litigation and other material events;compliance with environmental laws and compliance with all covenants of the Loan or COPs documents. The Facility will contain customary negative covenants,including,without limitation,restrictions on the following:liens and encumbrances;indebtedness and guarantees;sale and transfer of assets;consolidations and mergers; investments,loans and advances;capital expenditures;operating leases; transactions with affiliates;changes in line of business;and prepayment of other debt. Reporting Covenants: Unless otherwise requested,the Commission will provide the following items in an electronic format acceptable to the Bank. 1. Annual,audited financial statements of the City of Carmel within 150 days of the fiscal year end or within 15 days of issuance by the Indiana State Board of Accounts provided that internally prepared financial statements of the Commission are provided within 120 days of the fiscal year end. 2. Debt service coverage schedule for the entire Cannel Redevelopment Commission within 30 days of certification by the Commission at least semi-annually no later than each January 20th and July 20th. 3. Additional information as reasonably requested by the Bank. 2 Financials Covenants: Financial covenants will include,but not be limited to,the following: 1. Minimum Debt Service/Payment Coverage Ratio of 1.25x on Commission's aggregate Senior Obligations,Junior Parity Obligations and proposed Facilities. The Numerator to be TIF Revenues plus Lease Revenues plus Civic Payments(related to the Tarkington theater)minus project expenses(includes Senior Debt payments)minus any amounts due on junior parity obligations minus debt service payments on the proposed Facilities 1 &2;;the Denominator defined as:The aggregate annual debt service payments on the proposed Facilities($12.5MM+$17MM). Ratio to be calculated and reported annually. 2. The Commission will maintain annual average depository balances of no less than$1,000,000 at the Bank in an account acceptable to the Bank for the duration of the Facilities. 3. The Commission shall not encumber(by statutory pledge, contractual obligation,or otherwise)any portion of the Excess TIF Revenues on a Senior basis with the Facilities. The Commission may incur obligations payable from the Excess TIF on a parity basis with the Facilities subject to compliance with the 1.25x coverage as defined above. The Commission may incur obligations payable from the Excess TIF which are expressly subordinate to the Facilities. 4. A prohibition on transfer of assets subject to any installment purchase contract which secures any portion of the Facilities by the Commission to any entity or person. 5. Other terms and conditions as required by the Bank and its legal counsel. Events of Default: The Events of Default will be standard and customary for transactions of this nature,including but not limited to: 1. Failure to pay principal,interest,fee or other amounts under the facilities when due. 2. Default in connection with any other debt or the occurrence of any event of condition which enables the holder of such debt to accelerate the maturity thereof and such event or condition shall not be cured within any applicable grace period. 3. Misrepresentation by any of 4CDC,Pedcor or the Commission in any material respect. 4. Breach of covenants in the Loan or COPs Documents. 5. Commencement by the Commission of any voluntary or involuntary bankruptcy or similar proceeding;insolvency;failure to pay debt generally as they become due;attachment of any substantial portion of its property. 6. Material adverse change in financial conditions of the Commission and compliance with all terms and conditions of the Loan or COPs documents. 3 Governing Law: State of Indiana Counsel: The Bank will engage Hall,Render,Killian,Heath&Lyman,P.C.as the Bank's legal counsel. The Commission will be responsible for all the Bank's legal fees. Expenses: Upon the acceptance of a commitment,all legal expenses of the Bank,plus costs and expenses and other documentation fees incurred as a direct or indirect result of the preparation and review of the Facilities and related documents,will be reimbursed by the Commission whether or not the Facilities close. Facility 1 Purpose/Uses: Will be used to replace 4CDC's existing installment loan with KeyBank Fees: Refer to Exhibit I Security: Facility 1 will be secured by(i)a pledge of$1,000,000 in average annual lease revenue payments from the tenant lease agreement(the"Lease Revenues")and (ii) a contractual obligation of the Commission payable from TIF revenues available after the prior payment of the 2008 Bonds (see column #2 on the attached spreadsheet, the "Senior Obligations") and the prior payment of the junior parity obligations(as portrayed on the attached spreadsheet,the"Junior Parity Obligations") (see column 5 on attached spreadsheet, the "Excess TIF Revenues"). The Commission would also be required to maintain annual average depository balances with the Bank of no less than$1,000,000. Facility 2 Purpose/Uses: Will be used to acquire certain existing improvements(e.g.parking garages)to be re-sold by Pedcor on an installment contract basis to the Commission. Fees: Refer to Exhibit II Security: Facility 2 will be secured by the assignment from Pedcor to the Bank (if structured as a Term Loan) or to a Trustee (if structured as Certificates of Participation) of an Installment Purchase Contract between Pedcor and the Commission. Installment Payments to be made by the Commission under the Installment Purchase Contract will be secured by the pledge of a dedicated TIF revenue stream(the"Pedcor TIF"). Facility 2 will further be secured by a contractual obligation of the Commission payable from Excess TIF Revenues. 4 • • EXHIBIT I Cost Information for Facility 1 Interest Rates and At the Commission's option,Facility 1 will bear interest at the following rates: Frequency and Timing of Fees: Fixed Rate Option Fixed rate interest to be paid semi-annually in arrears:4.35% Variable rate option Reserve adjusted LIBOR+4.00%(4.23%at 9/15/11)fixed for interest periods of one,two,three or six months,calculated on an actual day/360-day basis and payable on the last day of the applicable interest period,but in any case,at least semi-annually. In the absence of LIBOR or at the Borrower's option,the rate will be Harris Base Rate(as defined below). Default Rate: Base Rate+4% Closing Fees: $12,500 Definition of Base Rate: Base Rate means,for any day,the rate per annum equal to the greatest of: (a) the rate of interest announced or otherwise established by the Bank from time to time as its prime commercial rate as in effect on such day,with any change in the Base Rate resulting from a change in said prime commercial rate to be effective as of the date of the relevant change in said prime commercial rate(it being acknowledged and agreed that such rate may not be the Bank's best or lowest rate),(b)the sum of(i)the rate determined by the Bank to be the average(rounded upward,if necessary,to the next higher 1/100 of 1%)of the rates per annum quoted to the Bank at approximately 10:00 a.m.(Chicago • time)(or as soon thereafter as is practicable)on such day(or,if such day is not a Business Day,on the immediately preceding Business Day)by two or more Federal funds brokers selected by the Bank for sale to the Bank at face value of Federal funds in the secondary market in an amount equal or comparable to the principal amount for which such rate is being determined,plus(ii) 1/2 of 1%, and(c)the LIBOR Quoted Rate for such day plus 1.00%. As used herein,the term "LIBOR Quoted Rate"means,for any day,the rate per annum equal to the quotient of(i)the rate per annum(rounded upwards,if necessary,to the next higher one hundred-thousandth of a percentage point)for deposits in U.S. Dollars for a one-month interest period which appears on the LIBOROI Page as of 11:00 a.m.(London,England time)on such day(or,if such day is not a Business Day,on the immediately preceding Business Day)divided by(ii)one (1)minus the Reserve Percentage. Definition of LIBOR: LIBOR is defined,with respect to the interest period requested,as the rate per annum for deposits in U.S.Dollars as reported on the LIBOROI Page as of 11:00 a.m.(London,England time)2 business days prior to the first day of the interest period. • • 5 EXHIBIT II Cost Information for Facility 2 Interest Rates and At the Commission's option,Facility 2 will bear interest at the following rates: Frequency and Timing of Fees: Fixed Rate Option Fixed rate interest to be paid semi-annually in arrears:4.36% To the extent Facility 2 is structured as a tax-exempt transaction,it will bear interest at 3.85%. Variable rate option Reserve adjusted LIBOR+4.00%(4.23%at 9/15/11)fixed for interest periods of one,two,three or six months,calculated on an actual day 1360-day basis and payable on the last day of the applicable interest period,but in any case,at least semi-annually. In the absence of LIBOR or at the Borrower's option,the rate will be Harris Base Rate(as defined below). To the extent Facility 2 is structured as a tax-exempt transaction,it will bear interest at LIBOR+2.8%(3.03%at 9/15/11). Default Rate: Base Rate+4% Closing Fees: $12,500 Definition of Base Rate: Base Rate means,for any day,the rate per annum equal to the greatest of: (a) the rate of interest announced or otherwise established by the Bank from time to time as its prime commercial rate as in effect on such day,with any change in the Base Rate resulting from a change in said prime commercial rate to be effective as of the date of the relevant change in said prime commercial rate(it being acknowledged and agreed that such rate may not be the Bank's best or lowest rate),(b)the sum of(i)the rate determined by the Bank to be the average(rounded upward,if necessary,to the next higher 1/100 of 1%)of the rates per annum quoted to the Bank at approximately 10:00 a.m.(Chicago time)(or as soon thereafter as is practicable)on such day(or,if such day is not a Business Day,on the immediately preceding Business Day)by two or more Federal funds brokers selected by the Bank for sale to the Bank at face value of Federal funds in the secondary market in an amount equal or comparable to the principal amount for which such rate is being determined,plus(ii) 1/2 of 1%, and(c)the LIBOR Quoted Rate for such day plus 1.00%. As used herein,the term "LIBOR Quoted Rate"means,for any day,the rate per annum equal to the quotient of(i)the rate per annum(rounded upwards,if necessary,to the next higher one hundred-thousandth of a percentage point)for deposits in U.S. Dollars for a one-month interest period which appears on the LIBOROI Page as of 11:00 a.m.(London,England time)on such day(or,if such day is not a Business Day,on the immediately preceding Business Day)divided by(ii)one (1)minus the Reserve Percentage. Definition of LIBOR: LIBOR is defined,with respect to the interest period requested,as the rate per annum for deposits in U.S.Dollars as reported on the LIBOR01 Page as of 11:00 a.m.(London,England time)2 business days prior to the first day of the interest period. 6 EXHIBIT III Information on BMO Harris Bank Bank's Credit Rating: Moody's S&P Long Term Ratings: Al A+ Short Term Ratings: P 1 AI+ Outlook: Stable Stable Bank Contacts: Katie Aeschliman Vice President Institutional Market Group 3901 West 86th Street Indianapolis,IN 46268 Phone:(317)228-5193 Fax:(317)879-4642 katherine.aeschliman@harrisbank.com 7 CITY OF CARMEL,INDIANA TAXABLE ECONOMIC DEVELOPMENT REVENUE BONDS CARMEL CITY CENTER,LLC&INDIANA DESIGN CENTER,U.0 Based on semi annual payments with a 20 yr amortization for$17MM loan with Harris bank. Assuming Umbaugh's approach excluding Parcel 7C,tax rate calculated at 1.8263%,and a growth rate at 1%.Adjusted to Include Pedcor's additional buildout work that will be assessed in 2013 and 2014. REAL ESTATE TAX REVENUE HARRIS PAYMENT-TAX EXEPMT Total Estimated Total Semi Annual $ 17,000,000 Real Estate Tax Payment Revenue Estimated Real with annual at Fixed Rate for 7 Estate Tax Revenue increases years Excess after Harris Tax Exepmt Date at 1% 3.50% Payment 2/1/2012 318,942 (198,333) (a] 120,609 8/1/2012 508,248 (297,500) (a] 210,748 2/1/2013 508,248 (297,500) (a] 210,748 8/1/2013 558,526 (297,500) (a] 261,026 1 2/1/2014 558,526 (594,526) (35,999) 8/1/2014 608,856 (594526) 14,330 2/1/2015 608,856 {594,526) 14,330 1 8/1/2015 614,492 (594,526) 19,967 2/1/2016 614;492 (594,526) 19,967 8/1/2016 620,637 (594,526) 26,112 2/1/2017 620,637 (594,526) 26,112 1 8/1/2017 626,844 (594,526) 32,318 2/1/2018 626,844 (594,526) 32,318 8/1/2018 633,112 (594,526) 38586 2/1/2019 633,112 (594,526) 38,586 8/1/2019 639,443 (594,526) 44,918 2/1/2020 639,443 (594,526) 44,918 8/1/2020 645,838 (594,526) 51,312 2/1/2021 645,838 (994,526) 51,312 8/1/2021 652,296 (594,526) 57,770 2/1/2022 652,296 (594,526) 57,770 8/1/2022 658,819 (594,526) 64,293 - 2/1/2023 658,819 (594,526) 64,293 8/1/2023 665,407 (594,526) 70,882 2/1/2024 665,407 (594,526) 70,882 8/1/2024 672,061 (594,526) 77,536 2/1/2025 672,061 (594,526) 77,536 8/1/2025 678,782 (594,526) 84,256 2/1/2026 678,782 (594,526) 84,256 8/1/2026 685,570 (594,526) 91,044 2/1/2027 685,570 (594,526) 91,044 8/1/2027 692,425 (594,526) 97,900 2/1/2028 692,425 (594,526) 97,900 8/1/2028 699,350 (594,526) 104,824 2/1/2029 699,350 (594,526) 104,824 1 8/1/2029 706,343 (594,526) 111,818 2/1/2030 706,343 (594,526) 111,818 8/1/2030 713,407 (594,526) 118,881 2/1/2031 713,407 (594,526) 118,881 8/1/2031 720,541 (594,526) 126,015 2/1/2032 720,541 (594,526) 126,015 8/1/2032 727,746 (594,526) 133,220 2/1/2033 727,746 (594,526) 133,220 8/1/2033 735,023 (594,526) 140,498 2/1/2034 735,023 - 735,023 8/1/2034 742,374 • 742,374 2/1/2035 742,374 742,374 8/1/2035 749,797 • 749,797 2/1/2036 749,797 • 749,797 32,230,814 (24,871,855) 7,358,959 [a)Interest only for 2 years with principal payments commencing on 2/1/2034. Carmel Redevelopment Commission Meeting Agenda Item Action Item #1 PRESENTER ACTION REQUESTED Karl Haas Approval ITEM/SUBJECT Motion to approve-Installment Contracts to Purchase Parcel 5 Parking Garages and Related Certificates of Participation. BUDGET APPROPRIATION MEETING DATE N/A November 1,2011 SUMMARY: Approval of the Installment Purchase Contracts necessary to purchase Parcel#5 parking garage and related Certificates of Participation. See Resolution 8-2011 and attached documents for further detail. MOTION: Motion to approve Resolution 8-2011.