HomeMy WebLinkAbout2016-OR-51 LEASE AGREEMENT REDEVELOPMENT (BOND) ORDINANCE NO. 51
JEFFERSONVILLE COMMON COUNCIL
AN ORDINANCE REGARDING APPROVAL OF A LEASE BETWEEN THE
JEFFERSONVILLE REDEVELOPMENT AUTHORITY AND THE
JEFFERSONVILLE REDEVELOPMENT COMMISSION
WHEREAS, the Jeffersonville Redevelopment Commission ("Commission") has
established the Inner City Road Economic Development Area ("Area") in Jeffersonville, Indiana
("City") in accordance with IC 36-7-14;
WHEREAS, the Commission, following a public hearing held on August 31, 2016,
adopted a resolution approving the execution of a lease ("Lease") with the Jeffersonville
Redevelopment Authority ("Authority") and the Authority has determined to issue its Economic
Development Lease Rental Bonds of 2016 ("Bonds") pursuant to a Trust Indenture between the
Authority and a to be determined trustee, anticipated to be dated as of November 1, 2016 ("Trust
Indenture") for the construction of certain road improvements (collectively, "Project") in, serving
or benefiting the Area;
WHEREAS, the Authority has been created as a body corporate and politic, in and under
the authority of IC 36-7-14, IC 36-7-14.5 and IC 36-7-25 for the purpose of financing,
constructing, acquiring and leasing local public improvements and economic development and
redevelopment projects, including the Project, to the Commission;
WHEREAS, pursuant to IC 36-7-14.5-19(a) and IC 36-7-14-25.2(c), the Common
Council is required to approve the issuance of the Bonds by the Authority and certain terms of
the Lease and the Bonds;
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WHEREAS, pursuant to IC 36-7-14.5-21(b) and (c), the Authority must obtain the
approval the Common Council to enter into the Trust Indenture and any pledge or assignment
made therein;
WHEREAS, pursuant to IC 36-7-14.5-13(b) and IC 36-7-14.5-22, the Common Council
must approve the transfer of property to the Authority and an exercise of the option to purchase
pursuant to Section 12 of the Lease by the Commission upon redemption of the Bonds;
WHEREAS, the estimated total cost of financing the Project and incidental costs
associated therewith and on account of the issuance of Bonds therefor by the Authority is
estimated to be not greater than $29,950,000; and
WHEREAS, rentals due under the Lease shall be payable from Tax Increment, on a
parity with the Outstanding Obligations, and, to the extent Tax Increment is insufficient, from a
Special Benefits Tax (each as defined in the Lease) collected in the allocation area within the
Area;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF
JEFFERSONVILLE, INDIANA, THAT:
Section 1. The Common Council hereby approves the issuance of the Bonds by the
Authority in an aggregate principal amount not to exceed $29,950,000, with a term ending no
later than February 1, 2027, a maximum interest rate of five percent(5%) per annum (actual rates
will be determined by negotiation), to provide funding for the Project, a debt service reserve, the
payment of capitalized interest on the Bonds, if necessary and costs of issuance.
Section 2. The Bonds maturing on or after August 1, 2026 are redeemable at the
option of the Commission, in whole or in part, in the order of maturity as determined by the
Commission and by lot within maturities, on any date not earlier than February 1, 2026, at face
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value, without premium, plus accrued interest to the date fixed for redemption, and shall be
subject to mandatory sinking fund redemption as determined upon the sale of the Bonds.
Section 3. The Common Council hereby approves the execution of the Lease and
approves entering into the Lease with a maximum annual lease rental of$4,550,000, plus $5,000
for trustee and other administrative fees. The Common Council hereby finds that the execution
of the Lease is necessary and wise and is for a project that will promote economic development
of the Area, will provide services that will serve the public purpose of the City and is in the best
interests of the City's residents, and further finds that the lease rentals provided for in the Lease
("Lease Rentals") are fair and reasonable.
Section 4. Providing for the financing, acquisition and construction of the Project by
the Authority and the leasing of the Project to the Commission is in the public interest of the
citizens of the City and it is a proper public purpose for which the Common Council agrees to
cooperate with the Authority to assist in fulfilling the requirements of all agencies of the federal,
state and City government.
Section 5. The Common Council hereby approves the execution of the Trust
Indenture by the Authority and hereby approves the pledge of: (i) the funds established by the
Trust Indenture; (ii) the interest earnings on such funds; and(iii)the Lease Rentals.
Section 6. The Common Council hereby approves the transfer of the land upon
which the Project will be constructed from the City to the Authority and approves the exercise of
the option to purchase the Project by the Commission pursuant to Section 12 of the Lease upon
redemption of the Bonds.
Section 7. This ordinance shall be in full force and effect upon its passage and
approval by the Mayor.
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Adopted this 6"' day of September, 2016, by a vote of ayes and
nays.
COMMON COUNCIL OF
JEFFERSONVILLE, INDIANA
Presi n r
ATTEST:
Clerk
Presented by me to the Mayor of the City of Jeffersonville, Indiana, on the —7— day of
September, 2016.
-�pfill, IZL
erk
Presen to and approved by me, the Mayor of the it of Jeffersonville, Indiana, and
signed this day of September, 2016.
Mayor
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EXHIBIT A
Proiect Description and Estimated Costs
10th Street Widening—Penn Street to Reeds Lane
The project will reconstruct and widen 10th Street from 4 to 5 lanes (5th lane will be a center turn lane)
from Dutch Lane/Penn Street to Reeds Lane. It will include the upgrading of turn lanes and signals at
the currently-signalized intersections, and will add sidewalks on each side of the road along the entire
corridor.
Estimated Cost: $16,800,000
10th Street North Reconstruction—Allison Lane to 1-265
The proposed work for overall project consists of installing storm sewers, curb inlets, and yard inlets
along both pavement edges (and not along the roadside ditches to minimize underground utility
relocation),curb and gutter along exterior pavement edges and median curb and gutter along interior
island edges, asphalt overlay of the existing pavement sloped toward the exterior gutters,sidewalks,
fencing, landscaping, three (3) new traffic signals and modernization of three (3) existing signals.
Estimated Cost: $7,500,000
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