[00:00:07]
>> GOOD AFTERNOON, LADIES AND GENTLEMEN PRAY THIS IS A REGULAR MONTHLY MEETING OF THE CARMEL REDEVELOPMENT COMMISSION.
I'D LIKE TO CALL OUR MEETING TO ORDER.
WE HAVE ALL OF OUR MEMBERS PRESENT.
[1. PLEDGE OF ALLEGIANCE ]
ONE OF OUR FORMER MEMBERS. WE WILL GET TO THAT IN A MINUTE.IF YOU WOULD STAND AND JOIN ME IN THE PLEDGE OF ALLEGIANCE.
I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
THANK YOU VERY MUCH. OUR NEXT ORDER OF BUSINESS IS ONE OF THOSE THAT I'M ALWAYS HAPPY TO DO BUT VERY SAD BECAUSE WE ARE SAYING GOODBYE TO A GOOD FRIEND.
WE ARE SAYING GOODBYE TODAY TO BILL BROOKS WHO HAS BEEN A LONGTIME MEMBER OF THIS COMMISSION AND DONE MANY, MANY THINGS FOR THE BENEFIT OF THE CITY OF CARMEL.
AS WE GET INTO THIS, BILL, I'D LIKE TO BEGIN BY ASKING YOU TO INTRODUCE THE FOLKS THAT ARE WITH YOU IF YOU WOULD.
SO EVERYBODY CAN HEAR YOU. >> WITH ME TODAY.
>> PUSHED THE BUTTON. >> TECHNOLOGY.
WITH ME TODAY I HAVE MY WIFE SHEILA BROOKS.
SHEILA IS OVER THERE. MY TWO SISTERS WHO BOTH ARE CARMEL RESIDENTS. DEBORAH WOOD AND LESLIE.
THEY HAVE COME HERE TO ENJOY THIS SPECIAL MOMENT.
>> GLAD TO HAVE THEM WITH US. >> DO I SIT DOWN COME ON
MR. DIRECTOR? >> YOU CAN SIT DOWN.
>> BEFORE YOU SIT DOWN, WE ARE GOING TO DO A COMPARISON.
>> MORE SERIOUS. >> YOU'RE SMILING MORE NOW.
[LAUGHTER] >> BILL, WHY DON'T YOU HAVE A SEAT? WE HAVE A SPECIAL GUEST TO SAY A FEW WORDS. AS MANY OF YOU KNOW, BILL BROOKS IS ROLLING OFF OUR COMMISSION TO JOIN ANOTHER COMMISSION WHERE HIS PASSION ALSO LIES WHICH IS THE MAYOR'S COMMITTEE ON VETERAN AFFAIRS AND WE HAVE THE COUNCIL PRESIDENT MATT SNYDER TO SAY A FEW WORDS. THERE HE IS.
SNEAKING UP. >> THAT'S WHAT I DO.
VERY FEW PEOPLE DEDICATE 25 YEARS TO SERVING THEIR COUNTRY AND THEN GO ON TO A SUCCESSFUL CAREER AND THEN IMMEDIATELY DEDICATE ANOTHER 12 YEARS TO SERVING THEIR COMMUNITY AT THE LOCAL LEVEL. BILL BROOKS DID THAT WITH.
FOR OVER A DECADE COME AND GO HAS HELPED SHAPE THIS COMMUNITY THROUGH REDEVELOPMENT AND INVESTMENT IN OUR CITY THROUGH THE CARMEL REDEVELOPMENT COMMISSION.
DURING THAT TIME HE HELPED GUIDE DECISIONS THAT WILL LEAVE A LASTING AND FOREVER IMPACT FOR GENERATIONS TO COME HERE IN CARMEL. THOSE KINDS OF RULES OFTEN REQUIRE LONG MEETINGS, DIFFICULT DECISIONS, THOUGHTFUL DELIBERATION, COUNTLESS HOURS OF MOSTLY UNSEEN WORK, AND LOTS OF CRITICISM. USUALLY THROUGH MISUNDERSTANDING OF THE FACTS. BILL APPROACHED THAT RESPONSIBILITY WITH PROFESSIONALISM, STEADINESS, AND HUMILITY. AND HE RECEIVED THE CRITICISM WITH GRACE. WHAT STANDS OUT EVEN MORE THAN THE LENGTH OF HIS SERVICE TO CARMEL IS THE SPIRIT BEHIND IT.
THE CONTINUED DESIRE TO SERVE OTHERS.
WHEN BILL SPOKE ABOUT JOINING THE VETERANS COMMISSION AT A PAST MEETING AND WITH ME IN COCKTAIL CONVERSATIONS COMING HE DIDN'T TALK ABOUT TITLES OR RECOGNITION.
HE TALKED ABOUT WANTING TO HELP VETERANS AND MILITARY FAMILIES BECAUSE HE UNDERSTANDS THEIR EXPERIENCES FIRSTHAND AFTER SERVING 25 YEARS IN THE UNITED STATES AIR FORCE BILL KNOWS THE SACRIFICES MILITARY FAMILIES MAKE.
HIS FAMILY MADE THEM. HE UNDERSTANDS THE CHALLENGES VETERANS CAN FACE AND THE IMPORTANCE OF HAVING A COMMUNITY THAT SUPPORTS THOSE WHO HAVE SERVED.
THIS TO ME TELLS ME EVERYTHING I NEED TO KNOW ABOUT MR. BILL BROOKS. MOST PEOPLE RETIRE FROM ONE DEMANDING PUBLIC SERVICE, ONE DEMANDING PUBLIC ROLE, AND FINALLY DECIDE TO SLOW DOWN. BILL APPARENTLY LOOKED AT THAT IDEA AND SAID "NOT FOR ME PURE" I WILL KEEP SERVING.
[00:05:03]
THANKFULLY FOR THE CITY OF CARMEL, HE HAS.CITIES ARE NOT JUST BUILT BY BUILDINGS, ROADS COME AND PROJECTS. THEY ARE BUILT BY A STEADY INCOME A DEPENDABLE PEOPLE WILLING TO QUIETLY SERVE YEAR AFTER YEAR WITHOUT ASKING FOR RECOGNITION.
BILL BROOKS IS ONE OF THESE PEOPLE.
BILL, ON BEHALF OF YOUR ENTIRE CITY COUNCIL, WE THANK YOU FOR YOUR SERVICE TO OUR NATION. AND WE THANK YOU MORE SO DIRECTLY TO US, YOUR SERVICE TO THE CITY WE LOVE MORE THAN ANYTHING IN THE WORLD OR WE WOULDN'T DO WHAT WE DO.
I PERSONALLY WANT TO THANK YOU FOR CONTINUING YOUR COMMITMENT TO THIS COMMUNITY THROUGH YOUR SERVICE ON THE VETERANS AFFAIRS COMMITTEE. IT'S SOMETHING THAT OBVIOUSLY I'M VERY PASSIONATE ABOUT AND I REALLY CAN'T THINK OF A BETTER MEMBER. I AM VERY MUCH LOOKING FORWARD TO HOPEFULLY ANOTHER DOZEN YEARS SERVING YOUR COMMUNITY.
>> THANK YOU, COUNCILLOR 38. [APPLAUSE]
>> WE ARE GOING TO ASK FOR YOU TO COME UP FRONT AND YOUR FAMILY TO COME UP SO WE CAN TAKE A PICTURE WITH THE COMMISSIONERS
BEHIND YOU B. >> IT'S A PLEASURE TO MEET ALL
>> AGAIN, WE ALL WANT TO THANK BILL FOR HIS LONG SERVICE TO THE COMMISSION, TO THE COUNCIL PRESIDENT FOR HIS VETERANS GROUP COMMISSION. YOU'RE GETTING A GREAT ASSET.
WE SHALL MISS HIM BUT I'M GLAD THAT HE'S STILL GOING TO BE HERE AND HELPING WITH THE ISSUES THAT ARE IMPORTANT TO OUR VETERANS.
THERE ARE MANY OF THEM HERE IN OUR COMMUNITY AND WE SALUTE THEM ALL. BUT PARTICULARLY BILL WE WANT TO SALUTE TODAY FOR ALL THE HOURS HE HAS PUT IN AND THE HELP PARTICULARLY HE HAS GIVEN TO ME PERSONALLY.
I. KNOW YOU WILL. LET'S MOVE ON TO OUR NEXT ITEM,
[2. APPROVAL OF MINUTES ]
THE APPROVAL OF MINUTES OF OUR APRIL 15TH REGULAR MEETING.ANY CORRECTIONS OR ADDITIONS TO THE DRAFT MINUTES THAT WERE PROVIDED TO YOU IN YOUR PACKET? HEARING NONE, IF SOMEONE WOULD LIKE TO OFFER A MOTION FROM WHAT THE CHAIR WOULD ACCEPT.
>> I MOTION TO APPROVE THE MINUTES.
>> DO WE HAVE A SECOND? ALL IN FAVOR PLEASE SAY AYE.
[3.a. Cash Flow Report ]
ANY OPPOSED? IT IS APPROVED.THANK YOU VERY MUCH. WE WILL NOW MOVE ON TO FINANCIAL MATTERS. LET'S BEGIN WITH THE CASH FLOW REPORT. MR. LEE.
>> THANK YOU. THE BALANCE FOR APRIL WAS $4,988,790 AND INCLUDING THE RESTRICTED FUNDS IT WAS
19 MILLION, $914,222. >> THANK YOU MR. LEE.
HAVE WE RECEIVED OUR PROPOSED DISTRIBUTIONS ESTIMATE FROM THE
PROBABLY WITHIN THE FIRST TWO WEEKS OF JUNE.
[3.b. Approval of Claims ]
>> THANK YOU. ANY QUESTIONS OF MR. LEE? SEEING NONE, WE'LL MOVE ON TO THE APPROVAL OF CLAIMS ONCE
AGAIN MR. LEE. >> THREE SETS OF CLAIMS.
[00:10:01]
THE FIRST FOR NON-OPERATING EXPENSES IN THE AMOUNT OF $104,036.61 THREE THE SECOND ONE FROM THE 2021 BONDS IN THE AMOUNT OF $12,565.39. FINALLY FROM THE 856 GIFT FUND IN THE AMOUNT OF $2159.44. PLEASE LET ME KNOW IF YOU HAVE ANY QUESTIONS. SPEAKER THANK YOU VERY MUCH.COMMISSIONER? >> A QUICK QUESTION FOR THE 2100 AND CHANGE FOR PROPERTY TAXES. WHAT'S THAT FOR?
>> WE HAVE LOTS OF PROPERTIES THAT WE HAVE PARCELS THAT THE CITY OWNS AND MOST IS THE DRAINAGE ASSESSMENT OF $75.
>> ANY OTHER QUESTIONS ON THE CLAIMS BEFORE US TODAY? SEEING NONE COME IT FITS YOUR PLEASURE BEACH CHAIR WOULD
ENTERTAIN A MOTION FOR APPROVAL. >> SO MOVED.
>> MOVED AND SECONDED. ALL IN FAVOR PLEASE SAY AYE OPPOSED. THEY ARE APPROVED.
THANK YOU VERY MUCH. SPEAKER I ABSTAINED FROM THAT
>> THANK YOU. >> ANY OTHER CLAIMS TO COME
[4. EXECUTIVE DIRECTOR REPORT ]
BEFORE US TODAY MR. LEE? THANK YOU VERY MUCH.WE WILL MOVE ON TO THE EXECUTIVE DIRECTOR'S REPORT.
>> THANK YOU COME ON MR. PRESIDENT.
IT'S BEEN A SEASON OF CONSTRUCTION HERE FOR THE LAST MONTH. LOTS OF WORK GOING ON IN MONON SQUARE GRID 11 IS THE CONDO BUILDING.
WE GOT NEWS THAT AN ITALIAN PLACE IS MOVING INTO THAT CORNER. THAT'S EXCITING STUFF HERE THE FINAL BUILDING IS UNDER CONSTRUCTION AT MAGNOLIA.
ALL OF THE RETAIL IS NOW UP. IF YOU LIKE JAPANESE FOOD OR MEXICAN FOOD OR PARISIAN FOOD, MAKE YOUR WAY THERE THROUGH THE NEWS. CONDO SALES ARE GOING WELL.
REPUBLIC CONTINUES BUILDING OUT ITS HOTEL AROUND THE GARAGE.
THERE YOU CAN SEE. LOTS OF WORK GOING ON ON THE AT&T SITE AND ESPECIALLY THE AT&T RESIDENCES.
IF YOU HAVE DRIVEN BY THERE'S A HOLE IN THE GROUND WHERE THE GARAGE IS GOING TO GO. IT'S EXCITING TO SEE PROGRESS ON MORE FOR SALE UNITS IN THE CITY. LOTS OF PROGRESS ON ARDALAN PLAZA WHICH HAS FOR SALE UNITS. THESE IMAGES ARE OUTDATED BECAUSE ON MONDAY WE HAD MICHAEL COME COME A DIRECTOR OF PARKS AND RECREATION AND PRESENT NEW IMAGES OF THE ACTUAL WATER FEATURE AND PARK FROM A VETERANS PARK, THAT'S GOING TO BE PART OF THIS PUBLIC-PRIVATE PARTNERSHIP WITH THE.
I WANT TO HIGHLIGHT LOTS OF PROGRESS GOING ON AT THE NORTH END SITE. YOU CAN SEE IT FROM THE HIGHWAY.
IT'S ANOTHER MULTIFAMILY RESTRICTED PROJECT.
AND PROBABLY THE ONE FINAL BIT OF UPDATES FOR EVERYONE IS ON MONDAY THE CITY COUNCIL APPROVED PRESINIUM THREE.
THE FINAL STEP THAT NEEDED TO BE TAKEN TO PUT THE LAND IN OCCURRED ON MONDAY SO THIS IS A SHOT OF THE HOTEL ON RANGELINE WITH AN OFFICE BUILDING TO THE NORTH OF IT.
YOU SEE THE HOTEL, OFFICE BUILDING, MULTIFAMILY IN THE BACKGROUND ON VETERANS WAY. YOU CAN SEE THERE'S AN OBSERVATION DECK AT THE TOP OF THE TOWER THAT'S GOING TO BE OPEN TO THE PUBLIC AND USABLE BY EVERYONE.
IT'S A NICE PLACE TO TAKE PICTURES OF THE JAPANESE GARDEN PARADE IT'S GOING TO BE AN EXCITING PROJECT.
THE LAST THING THAT NEEDED TO HAPPEN HAPPENED WHICH WAS A LAND DEDICATION SO HOPEFULLY WE'LL SEE SOME MOVEMENT SOON.
>> WILL YOU GO BACK A COUPLE. >> WHAT YOU SEE IS ON THE LEFT THAT IS THE RANGELINE PLAZA LEVEL.
YOU PULL IN OFF OF RANGELINE AND YOU CAN PARK AROUND THE OFFICE BUILDING AND THEN YOU GET BACK ON TO RANGELINE.
THE IMAGE ON THE RIGHT SHOWS THE VETERANS WAY LEVEL.
IT'S ESSENTIALLY UNDERGROUND. YOU HAVE RANGELINE ONE LEVEL ABOVE THE VETERANS LINE SO THAT'S HOW WE FIT THOSE PARKING SPACES AND THEN ENTRY FROM THE PARKING SOUTH, THAT'S AN ENTRANCE INTO THE LOBBY OF THE HOTEL.
[00:15:03]
THAT'S YOUR VIEW OF THE HOTEL. YOU CAN SEE THE SAME ENTRANCE FROM THE TOWER COME AT THE GARAGE COME WITH THE TOWER INTO THE HOTEL SO YOU NEVER GET RAINED ON.THAT'S A GOOD REPRESENTATION OF BOTH OF THOSE.
THAT CONCLUDES MY REPORT. I'M HAPPY TO ANSWER ANY
QUESTIONS. >> FIFTH THING THAT LOOKS LIKE A SLIDE, WHATEVER STREET THAT IS, WHAT IS THAT?
>> I BELIEVE YOU'RE ASKING ABOUT THE FINAL STAGE OF THE MONON EXPANSION WHICH IS HAPPENING ALONG THE MONON SQUARE SITE.
WHERE'S MY PICTURE OF THIS? CAN WE SEE IT? CAN'T SEE IT. ANYWAYS, YOU CAN KIND OF SEE IT ON THE BOTTOM LEFT AND THE BOTTOM RIGHT.
SO THE MONON IMAGERY, THAT'S EXPANSION IMAGERY ON THE BOTTOM LEFT AND THE BOTTOM RIGHT AND THE SLIDE THAT YOU'RE TALKING ABOUT IS A PLAYGROUND THAT'S THEMED TO COINCIDE WITH THE GREAT AMERICAN SONGBOOK WHICH WAS WHY IT'S A GIANT METRONOME.
>> IS THAT PART OF THE -- >> THE FUNDING FOR THAT WAS A TEAM EFFORT BETWEEN ENGINEERING AND REDEVELOPMENT COMMISSION.
THE FUNDING IS FROM ENGINEERING. >> THANK YOU.
>> IT'S SET TO BE OPEN SOMETIME SOON.
WE WILL LET A FUTURE PRESS RELEASE GIVE US MORE INFORMATION. SPEAKER WILL YOU BE THE FIRST
ONE TO GO DOWN THE SLIDE? >> I WOULD HAVE LOVED TO BE THE FIRST GROWN MAN TO GO DOWN THE SLIDE BUT MICHAEL DID THAT ALREADY. THERE IS A VIDEO OF IT.
>> THANK YOU. >> THANK YOU COME ON MR. DIRECTOR. ANY OTHER QUESTIONS FOR THE
[5. COMMITTEE REPORTS ]
DIRECTOR? SEEING NONE, WE WILL THANK THE DIRECTOR FOR HIS REPORT. WE'LL MOVE ON TO COMMITTEE REPORTS AND THE REVIEW COMM COMMITTEE.ANYTHING TO REPORT? >> NO MEETINGS.
>> THANK YOU VERY MUCH. WITH THAT WE WILL MOVE ON TO OLD
[7. NEW BUSINESS ]
BUSINESS. ANY OLD BUSINESS TO COME BEFORE>> WE WILL MOVE ON TO NEW BUSINESS AND WE HAVE SEVERAL ITEMS. I'LL BEGIN WITH ASKING MR. LEE ABOUT OUR FIRST ACTION ITEM, THE RESOLUTION.
MR. LEE. >> THIS IS A STATE STATUTE REQUIREMENT THAT WE STATE EACH YEAR IF WE INTEND TO PASS ANY TIFF ONTO THE ANY TAX UNIT. WE DO NOT.
WE NEED TO HAVE IT NEXT YEAR TO PAY FOR SERVICE AND PROJECTS.
AS WAS STATED IN THE RESOLUTION WE WILL SEND IT OUT TO THE DIFFERENT TAX UNITS. END DLGF.
>> VERY GOOD. ANY QUESTIONS OF MR. LEE? SEEING NONE, IF IT'S YOUR PLEASURE THE CHAIR WILL
ENTERTAIN A MOTION OF APPROVAL. >> SO MOVED.
>> IS THERE A SECOND? >> SECOND.
>> THANK YOU. MOVED AND SECONDED.
ALL IN FAVOR PLEASE SAY AYE. IT IS APPROVED.
WE WILL MOVE ON TO OUR ACTION ITEM NUMBER 2.
MR. DIRECTOR, SEVERAL THAT SEEM TO BE RELATED IF YOU'D LIKE TO
GIVE US OPENING THOUGHTS. >> THANK YOU.
THE STARTING POINT IS THE CITY OVERALL IS WORKING ON A LARGE REFUNDING. IT IMPLICATES NOT JUST CITY VOTES BUT ALSO CARMEL REDEVELOPMENT AUTHORITY VOTES THAT HAVE TAKEN PLACE AND THE REDEVELOPMENT COMMISSION VOTES.
WE ARE HERE TO ASSIST OUR CITY CFO ZACH JACKSON WHO'S GOING TO SAY A FEW WORDS IN GETTING THIS REFUNDING DONE AND TAKING THE VOTES WE NEED TO TAKE TO SEND THIS TO THE ULTIMATE ARBITER OF ALL THINGS, OUR CITY COUNCIL. I WILL GET OFF TO ZACH JACKSON.
>> THANK YOU. >> THANK YOU, HENRY, AND COMMISSION MEMBERS. I AM ZACH JACKSON, CFO AND CONTROLLER FOR THE CITY OF CARMEL.
WE HAVE AN OPPORTUNITY TO REFINANCE OUR BONDS FROM 2016.
TEN YEARS LATER THEY ARE CALLABLE AND WE WANT TO TAKE ADVANTAGE OF LOWER MARKET RATES. I'VE GOT SEVERAL PEOPLE HERE WITH ME TO HELP WITH QUESTIONS, HOWEVER FAR YOU WANT TO GET INTO THE WEEDS. THE BIG PICTURE, WE ARE TALKING ABOUT SAVINGS PROBABLY RANGING FROM 10 MILLION TO 12 MILLION DEPENDING ON THE MARKET CONDITIONS AT THE TIME THAT WE TAKE THIS TO MARKET. WE ARE PRIORITIZING MOST OF THE SAVINGS WE ARE GOING TO GET FROM THIS OVER FISCAL YEARS '27 AND
[00:20:03]
'28 ALTHOUGH ALL FISCAL YEARS WILL HAVE SOME SAVINGS.AND THEN ALSO SPECIFICALLY THIS DOES NOT AFFECT THIS COMMISSION BUT IN ADDITION TO GENERAL FUND SAVINGS WE WILL ALSO HAVE SOME SAVINGS ON OUR STORM WATER FUND WHERE WILL WE BE FREEING UP ABOUT HALF A MILLION A YEAR IN CAPACITY PLAYED THE MAJOR TAKEAWAY HERE IS REFINANCING TO TAKE ADVANTAGE OF LOWER MARKET RATES COMPARED TO WHAT WE HAD TEN YEARS AGO.
HAPPY TO ANSWER ANY QUESTIONS. >> VERY GOOD.
>> THE CURRENT RATE YOU'RE PAYING AND WHAT ARE YOU EXPECTING IF YOU WERE ABLE TO GET THEM IN THE MARKET TODAY
WHAT WOULD YOU SEE? >> I'M GOING TO PHONE A FRIEND.
>> WOULD YOU DO ME A FAVOR AND INTRODUCE THE FOLKS WITH YOU?
TIM IS HERE. SENIOR CONSULTANT.
BRAD. THE UNDERWRITER ON THIS TRANSACTION. CURRENTLY THE COUPON THAT YOU'RE PAYING ON THE TRANSACTION IS EITHER 3% OR 5% THROUGH THE LIFE OF THE BOND ISSUE. THE YIELD ON THE BACK END OF IT IS REALLY WHAT YOU LOOK AT WHEN YOU'RE GOING TO MARKET BECAUSE AT THAT TIME WE HAD ISSUED THE BONDS WITH THE PREMIUM AND SO THE OLD BONDS ARE NORTH OF 3.19%.
WE ARE AT 3.19% ON THIS TRANSACTION.
I THINK THE ORIGINAL RATES COME WITH THE YIELDS RANGE FROM 1.92 UP TO 3. SO YOU DO HAVE TO LOOK AT THE COUPON AND THE YIELD. WE ARE ANTICIPATING FOR THIS PARTICULAR BOND ISSUE THAT THERE WILL BE A PREMIUM GOING INTO THE MARKET. YOU'LL SEE THE COUPON BEING 5% AND THE YIELDS ON THE BACK END IS 3.19%.
>> YOU CONFUSED ME. YOU SAID THE ORIGINAL, THE RATE
WE HAD BEEN PAYING IS? >> THE ORIGINAL ON THE FULL BOND ISSUE WAS 2.89%. BUT YOU HAVE TO LOOK AT JUST THE TEN YEARS THAT WE ARE REFUNDING NOW THAT ARE LEFT OUTSTANDING.
THOSE RANGE FROM 1.92% TO 3%. FOR THIS BOND ISSUE, THE INTEREST RATE WILL BE GOING DOWN.
WE ARE ALSO RELEASING DEATH SERVICE RESERVE FUNDS THAT ARE OUTSTANDING. THAT MAKES UP A LOT OF THE
SAVINGS. >> HOW MANY DOLLARS IS THAT?
>> THE TOTAL SAVINGS. >> HOW MUCH WILL YOU RELEASE?
>> THERE ARE TWO DIFFERENT DEBT SERVICE RESERVE FUNDS ON THE STORMWATER BONDS NOT RELATED TO THE REDEVELOPMENT COMMISSION.
THOSE COLLECTIVELY COME I WOULD HAVE TO PULL THAT INFORMATION.
THOSE MAKE UP A MAJORITY OF AROUND THE 12 MILLION OF SAVINGS. I'D HAVE TO PULL THOSE REAL QUICK. ON THE 2016 STORMWATER BONDS THAT'S 2 MILLION 985,000 AND SOME CHANGE AND ON THE 2020 STORMWATER BONDS, THAT'S 707,000.
THOSE WILL GET RELEASED. ALSO ON TWO OF THE REDEVELOPMENT AUTHORITY PIECES OF THOSE 2016 BONDS COME IF YOU RECALL WE HAD DEBT SERVICE RESERVE SURETY POLICIES WHICH IS ESSENTIALLY AN INSURANCE POLICY THAT COVERS A DEBT SERVICE RESERVE.
ON THOSE YOU PAID A PREMIUM AT CLOSING OF THE BONDS AND THERE WAS NO CASH SET ASIDE FOR THOSE SURETY POLICIES WILL ALSO GET RELEASED. THERE WILL NOT BE ANY RESERVES GOING FORWARD ON THE REFUNDING BOND ISSUE.
WE HAVE HAD CONVERSATIONS WITH S&P THE RATING AGENCY BECAUSE WE WILL GET THE BONDS RATED TO ENSURE THERE WAS NOT GOING TO BE ANY CREDIT DOWNGRADE FOR REMOVING THOSE SURETIES FOR THEY HAVE ENSURED US BECAUSE OF THE HISTORICAL REVENUE STREAM WE HAVE IN PLACE THAT IT'S SUFFICIENT TO KEEP THE RATING AS IT IS BASED ON THAT ONE PARTICULAR PIECE.
>> YOU TALKED ABOUT IT 2.7 MILLION.
WHERE IS THE REST OF THE 12 COME FROM?
>> IT COMES FROM THE INTEREST RATE SAVINGS.
>> OKAY. AND THE INTEREST RATE WAS BETWEEN 1 AND 3 ON THE INITIAL SIDE NOW IT WILL BE...
>> 3.19. THE TICK ON THE REFUNDED BONDS.
THE TEN YEARS THAT ARE LEFT? >> WHILE HEIDI IS LOOKING AT
[00:25:02]
THAT UPCOMING CAN YOU TALK ABOUT TIMING AND THEN WE WILL TALK ABOUT THE INTEREST RATES THAT YOU'RE PROPOSING.>> YES. THIS BOND ISSUE IS GOING TO GO TO FINANCE COMMITTEE LATER TODAY AND THEN IT WILL GO TO COUNCIL AND THEN IT WILL GO TO THE CARMEL BOND FOR MEETINGS.
WE ANTICIPATE GETTING IT RATED IN THE NEXT COUPLE OF WEEKS WORKING WITH THE CITY'S TEAM TO GET IT RATED.
THEN WE ANTICIPATE PRICING THE BONDS THE LAST WEEK IN JUNE AND WE ANTICIPATE TO CLOSE ON JULY 16TH.
>> THANK YOU VERY MUCH. IF YOU WANT TO TALK ABOUT THE
INTEREST RATE. >> BAIRD IS THE UNDERWRITER.
THEY WILL BE, THEY HAVE SIGNED A CONTRACT WITH THE CITY TO BE THE UNDERWRITER AND THEY WILL ACTUALLY DO THE NEGOTIATING SALE ON THE BONDS AND FIND PURC PURCHASERS.
>> DO YOU MIND IF I PASS ON A MARKET UPDATE.
I THINK IT WILL BE HELPFUL. >> WHAT I WAS TRYING TO UNDERSTAND WAS... WHAT IS THE SPREAD BETWEEN THE OVERALL RATES OF THE COMBINED BONDS FROM TEN YEARS AGO VERSUS TODAY. WHAT YOUR EXPECTATIONS WOULD BE.
>> THE BOND MATH IS A LITTLE BIT CONFUSING BECAUSE YOU TALK ABOUT THE 5% COUPONS AND YOU SEE A YIELD THAT'S VERY LOW.
SO WHEN YOU DO A REFUNDING OF 5% COUPONS YOU ARE ABLE TO REFUND THOSE WITH THE LOWEST CURRENT MARKET YIELDS SO YOU ARE REFUNDING WHAT AT ONE POINT IN TIME WAS THE TEN TO 20 YEAR MATURITIES AND NOW 1 TO 10 YEAR MATURITIES, IT'S LIKE REFUNDING ANYTHING ELSE. YOU BORROW FOR SHORTER, IT'S CHEAPER. RATES ARE BETTER.
THAT'S PRETTY MUCH WHAT WE ARE DOING.
WE ARE TRYING TO REFUND THOSE LONG TERM 5% COUPONS WITH A LOWER CURRENT MARKET YIELD. SO YOU SEE A 5% COUPON AND YOU SEE THE CURRENT MARKET IS AT 3.19%.
ALL OF THAT DIFFERENCE IS WHERE YOU ARE GETTING THE DEBT SERVICE
OVERALL WITH THE SPREAD OF THE BONDS AROUND 5% AND THE ORIGINAL ISSUE AS I UNDERSTAND, SOME ARE SHORTER.
>> THE OVERALL COST WHEN THE ORIGINAL DEAL WAS DONE.
THE COST WAS LOWER BUT SINCE YOU'RE ABLE TO REFUND THE HIGHER COUPONS WITH A LOWER RATE, THAT'S WHERE THE SAVINGS IS DIFFERENT. DOES THAT MAKE SENSE?
>> CAN I ADD SOME CONTEXT? THE CITY IS DOING A MAJOR REFUNDING PAIR THERE'S A WHOLE BUNCH OF THAT THAT'S COMPLICATED. VERY LITTLE OF THAT HAS TO DO WITH THE CRC. WE BENEFIT TO THE TUNE OF ABOUT AN EXTRA HUNDRED GRAND A YEAR. WE ARE A TINY PART OF THE OVERALL REFUNDING THAT THE CITY IS DOING.
THAT'S HOW WE FIT INTO THE CONTEXT.
>> IF I'M GOING TO VOTE ON IT I WANT TO UNDERSTAND WHERE THE SAVINGS ARE, WHERE THEY COME FROM.
>> I CAN SHARE THIS. >> IT'S NOT A NEW AREA TO ME.
>> I DO HAVE HARD COPIES IF YOU PREFER.
CAN YOU PASS THOSE OUT? KIND OF OLD SCHOOL AND LIKE TO HAVE HARD COPIES BUT I WILL SHOW YOU ELECTRONICALLY AS WELL BEC.THE FIRST PAGE OF THE HANDOT YOU ARE GETTING READY TO RECEIVE AND WE WILL BE SHOWING ON THE SCREEN IN JUST A MOMENT IS A SUMMARY OF ALL 18 BONDS THAT ARE GOING TO BE REFUNDED AS A PART OF THIS PACKAGE. THE FIRST 13 BONDS THAT YOU'LL SEE REFERENCED QE1 THROUGH QE13. THERE WE GO, THANK YOU.
QE1 THROUGH QE13, THOSE ARE ORIGINAL REFERENCE NUMBERS TO THE QUALIFIED OBLIGATIONS THAT WE ISSUED IN 2016.
THOSE ARE ALL PAYABLE FOR PROPERTY TAX.
THOSE ARE CITY COUNCIL APPROVAL AND NOT UNDER YOUR JURISDICTION.
THE NEXT THREE ARE. THE LIT BONDS BACKED WITH THE PROPERTY TAX. 2016.
AND THEN THE TWO TIIFF BONDS, QUALIFIED ENTITY 15 AND 16 COME THROUGH THIS BODY AND THE FINAL TWO ARE STORM WATER DISTRICT
[00:30:05]
BONDS WHO WENT THROUGH THIS MORNING AND THEN COUNCIL AS WELL. THE THREE THAT WE ARE GOING TO FOCUS ON ARE THE LIT AND THEN THE TIF BONDS.THE TOTAL OVERALL SAVINGS SCHEDULE.
THIS IS FOR ALL 18 OBLIGATIONS PUT TOGETHER, WHAT THE SAVINGS ARE ON AN ANNUAL BASIS. ON THE LEFT-HAND SIDE YOU CAN SEE WHAT THE ANNUAL DEBT SERVICE IS FROM A PRINCIPAL AND INTEREST PAYMENTS TO GET YOU TO THE TOTAL COMPARED TO THE PROPOSED REFUNDING BONDS COLUMN. THEN YOU CAN SEE SEMIANNUAL AND ANNUAL SAVINGS ON THE RIGHT HAND COLUMNS.
TOTAL OVERALL GROSS SAVINGS. YOU HAVE TO BACK OUT THE PRIOR BOND FUNDS. NET PRESENT VALUE SAVINGS.
12.3 WITH CURRENT MARKET CONDITIONS, AS YOU KNOW THERE'S LOTS GOING ON SO I WOULD SAY THIS IS PROBABLY THE HIGH END OF THE MARKET RIGHT NOW. I WOULD SAY EIGHT TO 12 MILLION SAVINGS RANGES WHERE WE HOPE TO HIT AND THAT'S A NET PRESENT VALUE SAVINGS OF 7.83. IF YOU SCROLL DOWN TO THE NEXT PAGE, THAT IS JUST FOR THE PROPERTY TAX BONDS SO YOU CAN SCROLL PAST THAT. THE LIT SUPPORTED BOND ISSUE.
YOU CAN SEE FOR JUST THE LIT COMPONENT OF THIS BOND ISSUE ON THE FAR RIGHT-HAND SIDE THAT'S WHAT THE ANNUAL SAVINGS ARE GOING TO BE. YOU WILL SEE THE STRUCTURE AS ZACH MENTIONED. IT'S WHERE THE MAJORITY OF THE SAVINGS ARE GOING TO BE. YOU CAN SEE ABOUT 430,000 OF SAVINGS THEREAFTER ON THAT PARTICULAR BOND ISSUE SUPPORTED BY THE LIT REVENUES. THE NEXT PAGE, THE NEXT TWO PAGES ARE THE TIF-SUPPORTED BONDS.
2016B BONDS ARE A SMALL PORTION OF THIS TOTAL OVERALL REFUNDING.
WE INCLUDED THIS PIECE IN TOTAL OVERALL PACKAGE.
IT'S BEST TO KEEP IT ALL TOGETHER AND NOT LEAVE A PIECE OUTSTANDING. THAT IS INCLUDED.
IF YOU FLIP TO THE NEXT PAGE, THAT'S THE BIGGER TIF PIECE AND YOU CAN SEE THE ANNUAL SAVINGS ON THE FAR RIGHT-HAND SIDE ARE ABOUT 95000 A YEAR. ABOUT 7.5% SAVINGS.
THAT IS ON THE TIF-SUPPORTED PIECE.
>> I'M ASSUMING THE FINAL MATURITY DATE IS NOT CHANGING.
>> FINAL MATURITY DATES ARE NOT CHANGING.
LET ME GO BACK TO PAGE ONE OF THE SUMMARY.
GO BACK TO THE FRONT PAGE OF THE HANDOUT.
ON THE RIGHT-HAND SIDE, THOSE DATES WILL REMAIN THE SAME.
THEY DID VARY. EVEN WHEN WE ISSUED THE 2016 BONDS FOR THOSE MATURITY DATES DID VARY.
>> HONESTLY I WASN'T HERE IN 2016.
OBVIOUSLY I WASN'T HERE IN 2016 SO YOU MIGHT HAVE TO FILL ME IN.
WHY IS IT -- >> CO CERTIFIED CHAIRS.
IT WAS DONE UNDER THE REDEVELOPMENT DEBT LIMIT AND
AUTHORITY. >> PROBABLY HAVE TO DO THEM SEPARATELY. ONE LAST THING BEFORE I ASK FOR A MOTION. I NEED TO ASK IF THERE ARE ANY OTHER QUESTIONS FIRST OF ALL. SECONDLY, THERE ARE TIMES WHEN THE REDEVELOPMENT COMMISSION DOES DO OTHER NOT JUST TIF BONDS FOR OUR PROJECTS BUT THEY PASS THROUGH FOR THE CITY FOR THE ROAD REFUNDING BONDS. THEY COME THROUGH US.
WE ARE SORT OF IN LOCKSTEP WITH MR. JACKSON ON A LOT OF THIS BUT WE HAVE WORKED TOGETHER CLOSELY TO MAKE SURE THAT EVERYTHING IS COORDINATED PARTICULARLY IN THESE TIMES WHEN REVENUES ARE SCARCE. WE WANT TO SAVE AS MUCH AS WE
CAN. >> AND I WOULD ADD THAT IN DISCUSSIONS WITH THE PRICING DIRECTOR AND THE TEAM THE INDICATIONS WE ARE SEEING FROM THE FED FUND FUTURE SCALE, IT SCALES PRETTY CLOSELY TO THE MUNICIPAL BOND MARKET.
IT IS ANTICIPATED THAT RATES ARE GOING TO GO UP TOWARDS THE END
[00:35:02]
OF THE YEAR AGAIN AND PROBABLY STAY UP IN 2027.IT IS KIND OF IDEAL TIMING RIGHT NOW TO GET TO THE MARKET BY JUNE. WE SHOULD BE GOOD.
BUT IT IS A VERY SMALL WINDOW OF OPPORTUNITY HERE THAT WE HAVE.
>> VERY GOOD. >> THANK YOU SO MUCH, HEIDI, FOR GIVING THIS TO US ON MONDAY NIGHT AND GIVING US TIME TO DIGEST IT AND ASK QUESTIONS. I WANT TO SAY THAT WHEN WE GO THROUGH THIS PROCESS, I AM GOING TO VOTE IN SUPPORT OF SENDING THIS BECAUSE I BELIEVE THAT WHAT WE ARE VOTING ON TONIGHT IS FOR US TO SEND IT BACK TO CITY COUNCIL SO WE CAN HAVE THIS DISCUSSION. I'M GOING TO SUPPORT THAT SO IT MOVES THE NEEDLE IN THE RIGHT DIRECTION HERE.
BUT WE WILL HAVE, I WILL HAVE MORE QUESTIONS OBVIOUSLY, SINCE WE HAVE A MORE EXTENDED LIST OF ITEMS TO GO THROUGH TONIGHT.
I JUST WANTED TO SAY THAT FOR THE RECORD.
>> THANK YOU, COMMISSIONER. ANY OTHER QUESTIONS AT THIS POINT, COMMISSIONERS? WHAT WE'LL DO IS IF IT'S YOUR PLEASURE, THE CHAIR WOULD ENTERTAIN A MOTION OF APPROVAL FOR RESOLUTION 2603 WHICH IS THE FIRST PORTION.
I BELIEVE THERE WILL BE THREE SEPARATE RESOLUTIONS ON THIS.
IF I CAN HAVE A MOTION OF APPROVAL FOR THE FIRST.
>> MOVED AND SECONDED ALL IN FAVOR PLEASE SAY AYE.
THANK YOU. WE WILL MOVE ON TO ACTION ITEM NUMBER 3 WHICH IS RESOLUTION 2026-04, THE 2026B POLICE REFUNDING BONDS AND ONCE AGAIN HEIDI.
>> IT'S THE SAME THING WE JUST TALKED ABOUT.
I LEAVE IT UP TO YOU, COMMISSIONER.
>> ANY OTHER QUESTIONS REGARDING THIS SERIES? IF NOT THE CHAIR WOULD ENTERTAIN A MOTION.
SO MOVED. IS THERE A SECOND? MOVED AND SECONDED ALL IN FAVOR PLEASE SAY AYE.
VERY GOOD. WE WILL NOW MOVE ON TO ACTION ITEM 4, THE LAST IN THE SERIES. THE RESOLUTION 2026-05 WHICH IS THE 2026C REFUNDING BONDS. LEASE REFUNDING BONDS.
2026C. TRY SAYING THAT REAL QUICK.
IS THERE A SECOND? MOVED AND SECONDED.
THANK YOU VERY MUCH. ALL IN FAVOR PLEASE SAY AYE AYE.
THANK YOU VERY MUCH. I'D LIKE TO THANK HEIDI AND HER GROUP AND BAIRD AND THE OTHER FOLKS INVOLVED.
WE APPRECIATE IT. TO OUR CFO, THANK YOU FOR YOUR
HELP. >> THANK YOU FOR YOUR SUPPORT.
APPRECIATE IT. >> I BELIEVE WE HAVE ONE MORE ITEM TO COME BEFORE US THIS EVENING.
OVER THE LAST FEW YEARS, BEFORE THE LAST FEW YEARS BUT UNDER A PREVIOUS ADMINISTRATION SOME OF THIS COMMISSION VOTED TO AUTHORIZE SEVERAL CONTRACTS FOR THE COMPILATION AND EDITING OF A BOOK ABOUT THE PALLADIUM, THE BUILDING OF PALLADIUM AN ENHANCEMENT TO OUR CITY THAT THE PALLADIUM BRINGS.
IT WAS A MAJOR EFFORT OF OUR PREVIOUS MAYOR, SO NOW THIS BOOK IS FINISHED AND OUR FORMER MAYOR HAS STARTED A NON PROFIT CALLED THE INSTITUTE FOR BEAUTIFUL CITIES SO THE VOTE IS NON-EXCLUSIVE LICENSE TO ALLOW THE BRAINERD INSTITUTE FOR BEAUTIFUL CITIES TO PRINT AND DISTRIBUTE AS MANY COPIES OF THIS BOOK AS POSSIBLE SO EVERYONE IN THE WORLD CAN SEE HOW GREAT IT IS. IT'S A NON-EXCLUSIVE -- SORRY, NON INCLUSIVE LICENSE. IT'S A ROYALTY FREE LICENSE.
IT ALLOWS THE FINISHED PROJECT TO BE PRINTED BY SOMEONE ELSE AND DISTRIBUTED BY SOMEONE ELSE. WE GET 100 FREE COPIES AS PART OF IT. I APPRECIATE THE WORK THAT THE IN HOUSE LEGAL DEPARTMENT DID NEGOTIATING THE AGREEMENT AND I'M HAPPY TO ANSWER ANY QUESTIONS.
>> THANK YOU MR. DIRECTOR. AS BACKGROUND, I THINK FOR THOSE OF YOU WHO WEREN'T AROUND SOME YEARS AGO WHEN THE PALLADIUM WAS
[00:40:03]
BUILT, ACTUALLY THE PALLADIUM CONSTRUCTION WAS A CRC PROJECT.IT WAS OUR PLEASURE TO HAVE OPENED IT AND NOW I THINK IT'S IN ITS 15TH YEAR OF OPERATIONS. IT'S VERY EXCITING TO SEE THAT.
THE DOCUMENTATION OF THE BOOK IS EXCITING TO SEE.
I CAN REMEMBER A LOT OF LONG DAYS AND MEETINGS TRYING TO DECIDE, WHAT COLOR SHOULD THE LIGHTING FIXTURES BE AND THOSE SORTS OF THINGS BUT THOSE ARE ALL THE DECISIONS THAT HAVE TO BE MADE. ANYWAY, OTHER QUESTIONS REGARDING THIS? SEEING NONE COME IF IT'S YOUR PLEASURE, THE CHAIR WOULD CALL FOR A MOTION OF APPROVAL.
>> MOVE TO APPROVE. >> THANK YOU.
>> IT'S BEEN MOVED AND SECONDED, ALL IN FAVOR PLEASE SAY AYE.
IT IS APPROVED. THANK YOU VERY MUCH.
SO LET US GO BACK TO OUR AGENDA HERE FOR YOU I BELIEVE THOSE ALL THE ACTION ITEMS. ANY OTHER BUSINESS TO COME
BEFORE US? >> NO OTHER BUSINESS.
NO OTHER BUSINESS FOR TODAY. >> VERY GOOD.
[9. EXECUTION OF DOCUMENTS ]
WITH THAT THEN, WITHOUT OBJECTION WE WILL MOVE TO ADJOURN PENDING THE EXECUTION OF DOCUMENTS OUR NEXT REGULAR MEETING WILL BE WEDNESDAY, JUNE 17 HERE IN THE CITY COUNCIL CHAMBERS AT 4PM AND I WOULD LIKE TO THANK EVERYONE FOR THEIR HARD WORK ON THE REFUNDING AND FOR BEING WITH US TODAY.THANK YOU ALL.
* This transcript was compiled from uncorrected Closed Captioning.