The URL can be used to link to this page

Home My WebLink AboutCity Council 3-1-10Office of the Clerk-Treasurer City of Carme COMMON COUNCIL MEETING AGENDA MONDAY, MARCH 1, 2010 6:00 P.M. COUNCIL CHAMBERS/CITY HALL/ONE CIVIC SQUARE MEETING CALLED TO ORDER I INVOCATION 2. PLEDGE OF ALLEGLANCE 3. RECOGNITION OF CITY EMPLOYEES AND OUTST ING CITIZENS 4. APPROVAL OF M TES a. February 15, 2010 Regular Meeting 5. RECOGNITION OF PERSONS WHO WISH TO ADDRESS THE COUNCIL. 6. COUNCIL, MAYO L AND CLERK-TREASURER COMMENTS/OBSERVATIONS 7 ACTION ON MAYORAL VETOES 8. CLAIMS a. Paylo I I h. General Claims c. Retirement 9. COMMITTEE REPORTS a. Finance, Administration and Rules Committee b. Land Use, Annexation and Economic Development Committee c. Parks, Recreation and Arts Committee d. Utilities, Transportation and Public Safety Committee e. Report from the Council Appointee to the Redevelopment Commission Presentation by Loren Matches, Umbaugh 1 ONE CI VIC. SQUARE CARMEL, iNDIANA 46C132 317571.2414 Lc.)uvtui —2 0 CITY OF CARMEL0NDUANAQ0EDEVELOPyVIENT DISTRICT Combined Tax Increment Revenues Page 9 GENERAL COMNIENTS 5 (Cont'd.) This schedule shows the combined real and personal property Tax Increment anticipated to be generated in the Designated Areas. The estimated Tax Increment (s based onactual developments within the Designated Areas per the Tux Increment database provided by ihe Hamilton County Auditor's office and is based on anticipated new developments per approved building permits and developahle sites provided by the Carmel Department of Community Services. The estimated Tax Increnient shown in the colurnns cntitled 26' Street TIF Ancu," "City Center TIF Area" and "Other '[|FAreas" flows from the schedules of^^Es1i mated Tax increment" for the Designated Areas and the schedule of "Estimated Future Developments in the Economic Development Areas" on pages 11 through 16 as furthei deseri tied herein. The schedule shows three additional revenue streams: MlS8TIF C1arirn Surplus, and Barrington PILOT Payments. As mentioned previously, the depreciable personal property taxinoreinent from the Midwest ISO facility (1v1/SO TDF) is also included in the Tax Increment. This estimated revenue stream is based on the Midwest ISO's mvestment as shown on the Midwest (SO's Business Tangible Personal Property Tax Returns (103 form) O|od with the State of Indiana, plus future investment, which consists of new equiprnen and the replacement of oid equipment. The Tax Increment from the Uhinois Street Economic Developrnent Area is generated primarily from the new Clarian H 'tad,horv/bichlhcunuou{Wucsa/copprnzionutdJ$3mod|i0n.Tbeuunuu\Tax Increment is pledged to the payment of outstanding Carmel Redevelopment District Fax Increment Revenue Bonds, Series 2004/\ issued for the construction of Illinois Street (the "Illinois Street Bonds"). The annual debt service is approximateJy 5900000. ApproximateIy S2.l million o[annual surplus Tax Increment is available until thc Illinois Street Bonds are paid-off ioZ023, and, then, all of the annual 'Fax Increnient from the IIJinois Street Econoniic Development Area would he avai!able to pay the obligations of the Cornmission until the Area cxpires in 2032. The esdnge.d Tax Increment shown in this schedule is based on the surplus Tax. ucremenL from the Illinois Street Economic Development Area (net of the Illinois Street Bond payments) to herein as the "Clarian Surplus"). The estirnated Clarkin Surplus is also reduced by $300000 annually to provide for a pending property assessment appeal by Clarian. This .schcduk also includes a revenue stream frorn [he 3arr i ngton PELOT is constructing an assisted living facility. cuUm1 &:rringlon within the 126" Street Economic Development Area. Because the facility is aniicipated to be exempt from property taxes, the City required the developer to enter into an Agrccrnent with ihe City ofCarinel 10 make paynients in lieu of taxes (^P)LO7Poynooun`l Because of it's location within Lhe 1 26th Street Arca the P1LOT payments are anticipated to he distributed to the Commission to be used in the same manner as Tax Increment to pay obli i uS0fde Cnnunisdnn. CITY OFCARMEL (INDIANA) REDEVELOPMENT DISTRICT GENERAL COMMENTS Combined Tax Increment Revenues Page 9(Cnni'd) Comparison of Estimated Tax Increment and Debt Obli ions Page 10 (Cont'd.) The total annual Fax Increment from the Designatcd Areas, the M{SOTIFthe Clarian Surplus and The Barrington PILOT Payments is estimated at $13,303,021 in tax collcction year 2009 and is estimated to increase Uma peak o[$24,990,93O in 2026. The annual Tax Increment is estimated to decrease significantly in 2029 and in 2033 due in the expiration of the 1998 Areas and some o[the Designated Areas respectively. This schedule compares the estimated Tax Increment with the outstanding and proposed obligations. The columns under the title "Outstanding and Proposed TIF Obligations' shown in this schedule include the deht service dtie on the 2008 Boiids, the outstanding installrnent payments due under the Other Installment Purchase Agreements the Installment Payments due under the Installment Purchase Agreement(referrcd to in this schedule as the "2010A COPs" and the "Taxable 2010B COPs"), which are anticipated to be issued 011 O about January 21 2010. The first coverage coluinn, which provides an annual comparison of the estimated Tax Increment with these obligations, varies from 210% to 356%. Although Tax Increnient is not pledged to thc lease rcntal due on the 2005 Bonds nor to the debt service on the 2006 C(}ITDofundinA Bonds, the Commission has also publicly committed that thc District will pay these obligations from Tax Increment from the Designated Areas. When these obligations are indudod, the annual coverage of estirnated Tax Increment compared to obligations, varies from 116% to 240%, with annual Tax lnciernent surplus varying froirt approximately 2.3 to $5.4 million, averaging approximately $4.1 million. Estimated Tax Increment from the 1h Street Economic Development Area Pages 11 and 12 For 2009 tax year payable 2010, ilic County Auditors office reported the incremental assessed value at $309,352,Q68 for the /�n�cndod |20 m n� Street Area and $7U.6l9,8l8 for the Aeodod 126 Street Expansion Area, which is, tlieii, reduccd by l0% for pending appeals io2009 and 20l0, and 3%in 2011, and increased annually by 1 beginning in 2012 for anticipated increases in niarket value due to trending, to estimate total net incremental assessed value. The net incremental assessed value was multiplied by the 2009 tax rate of$|.73|9per $lA0ofassessed value for City ofCarrnet iuxing district to calculate the estimated Tax Increment. The estimated net Tax Increment for 2010 is approximately $7,706,480. De estimated 20|| net Tax liicrernent is estiniated to be $8,576,680. The future Tax Increment is anticipated to grow to $11,823,170 due to anticipated developments over the next 10 years beginning iri taxes payable 2016 and froni scheduled reductions in existingtax tax abatements, No adjustrnent was madc for future statewide reassessments.