AMENDMENTS AND EXPANSION TO WEST HARRISON TIF AREA- RESOLUTION PASSED AT DCRC 12 NOV 2015

AMENDMENTS AND EXPANSION TO WEST HARRISON TIF AREA- RESOLUTION PASSED AT DCRC 12 NOV 2015

RESOLUTION NO. ___2______

RESOLUTION OF THE DEARBORN COUNTY REDEVELOPMENT COMMISSION APPROVING VARIOUS AMENDMENTS TO THE DECLARATORY RESOLUTION AND ECONOMIC DEVELOPMENT PLAN FOR THE WEST HARRISON EXPANDED ECONOMIC DEVELOPMENT AREA

WHEREAS, the Dearborn County Redevelopment Commission (the “Commission”), as the governing body for the Dearborn County Redevelopment Department, pursuant to Indiana Code 36-7-14, as amended (the “Act”), has heretofore adopted a declaratory resolution (as subsequently confirmed and amended, the “Declaratory Resolution”) designating an area known as the West Harrison Expanded Economic Development Area (the “Existing West Harrison Economic Development Area”) as an Economic Development Area pursuant to the Act, designating the Existing West Harrison Economic Development Area as an “allocation area” (designated as the “West Harrison Expanded Economic Development Area Allocation Area”) pursuant to Section 39 of the Act (the “Existing West Harrison Allocation Area”), and approving an Economic Development Plan for the Existing West Harrison Economic Development Area (as previously adopted and amended, the “Plan”); and

WHEREAS, pursuant to Sections 15-17.5 of the Act, the Commission desires to amend the Declaratory Resolution and the Plan by making certain modifications to the Existing West Harrison Economic Development Area and the Existing West Harrison Allocation Area, including (1) expanding the Existing West Harrison Economic Development Area and the Existing West Harrison Allocation Area to include the road depicted in Exhibit A hereto (the “West Harrison Expansion Area”), (2) removing certain parcels from the Existing West Harrison Allocation Area and creating a separate additional new allocation area consisting of such removed parcels and certain addition parcels to be added to the Existing West Harrison Economic Development Area, as depicted in Exhibit B hereto, and (3) adding the projects described in Exhibit C attached hereto (collectively, the “2015 Project”) to the Plan (collectively, the “Amendment”); and

WHEREAS, the Commission has caused to be prepared maps and plats showing the boundaries of the Existing West Harrison Economic Development Area, as hereby expanded, the location of various parcels of property, streets, alleys, and other features affecting the replatting, replanning, rezoning, redevelopment or economic development of the Existing West Harrison Economic Development Area, as hereby expanded, and the parts of the Existing West Harrison Economic Development Area, as hereby expanded, that are to be devoted to public ways, sewerage and other public purposes under the Amendment; and

WHEREAS, the Commission has caused to be prepared a list of the parcels of property located in the Existing West Harrison Economic Development Area, as hereby expanded, and the owners thereof; and

WHEREAS, the Commission has caused to be prepared an estimate of the cost of the 2015 Project as set forth in Exhibit C hereto; and

WHEREAS, the proposed Amendment and supporting data were reviewed and considered at this meeting;

NOW, THEREFORE, BE IT RESOLVED by the Dearborn County Redevelopment Commission, as the governing body of the Dearborn County Redevelopment Department, as follows:

1. In addition to the 2015 Project set forth in Exhibit C hereto, the Amendment shall consist of the amendments described below.
2. The West Harrison Expansion Area, together with the parcels indicated in Exhibit B (the “Skally’s Bakery Expansion Area”), are hereby added to the Existing West Harrison Economic Development Area.
3. The parcels indicated in Exhibit B hereto (the “Removed Parcels”) are hereby removed from the Existing West Harrison Allocation Area.
4. The area depicted in Exhibit B, consisting of the Removed Parcels and the Skally’s Bakery Expansion Area, is hereby designated as a new “allocation area” (the “Skally’s Bakery Allocation Area”) pursuant to Section 39 of the Act for purposes of the allocation and distribution of property taxes on real property for the purposes and in the manner provided by said Section. Any property taxes subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in said allocation area shall be allocated and distributed as follows:

Except as otherwise provided in said Section 39, the proceeds of taxes attributable to the lesser of the assessed value of the property for the assessment date with respect to which the allocation and distribution is made, or the base assessed value, shall be allocated to and when collected paid into the funds of the respective taxing units. Except as otherwise provided in said Section 39, property tax proceeds in excess of those described in the previous sentence shall be allocated to the redevelopment district and when collected paid into an allocation fund for said allocation area that may be used by the redevelopment district to do one or more of the things specified in Section 39(b)(3) of the Act, as the same may be amended from time to time. Said allocation fund may not be used for operating expenses of the Commission. This allocation provision shall expire on the later of twenty-five (25) years from the date of issuance of debt secured by the allocated property taxes, or at such time as no bonds payable from allocated property taxes are outstanding.  The base assessment date for the Skally’s Bakery Allocation  Area will be March 1, 2015.

1. With respect to the Skally’s Bakery Allocation Area, the Commission hereby designates Odette, LLC (the “Company”) and its successors or assigns, or any affiliates of the Company and their successors or assigns, as a “designated taxpayer” for purposes of IC 36-7-14-39.3 (the “Designated Taxpayer”).  The Commission hereby modifies the definition of property taxes in IC 36-7-14-39(a) for the purposes of including taxes imposed under IC 6-1.1 on the depreciable personal property of the Designated Taxpayer and all other depreciable property located and taxable on the Designated Taxpayer’s site of operation in the Skally’s Bakery Allocation Area.  The Commission finds that:  (a) the taxes to be derived from the Designated Taxpayer’s depreciable personal property in the Skally’s Bakery Allocation Area and all other depreciable property located and taxable on the Designated Taxpayer’s site of operation within the Skally’s Bakery Allocation Area in excess of the taxes attributable to the base assessed value of that personal property, are needed to pay debt service on bonds issued under IC 36-7-14-25.1, or to make payments or to provide security on leases payable under IC 36-7-14-25.2, in order to provide local public improvements for the Skally’s Bakery Allocation Area; (b) the property of the Designated Taxpayer in the Skally’s Bakery Allocation Area will consist primarily of an industrial related project; and (c) the property of the Designated Taxpayer in the Skally’s Bakery Allocation Area will not consist primarily of a retail, commercial or residential project.
2. The Existing West Harrison Economic Development Area and the Existing West Harrison Allocation Area are hereby expanded to include the road depicted in Exhibit A hereto (the “West Harrison Expansion Area”).  The Existing West Harrison Economic Development Area is further expanded to include the parcels indicated in Exhibit B, which shall form a part of the Skally’s Bakery Allocation Area (the “Skally’s Bakery Expansion Area”).
3. This paragraph shall be considered the allocation provision for the West Harrison Expansion Area.  Any property taxes levied on or after the effective date of this Resolution by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in the West Harrison Expansion Area shall be allocated and distributed in accordance with IC 36-7-14-39 or any applicable successor provision.  This allocation provision shall expire no later than twenty-five (25) years after the date on which the first obligation is incurred to pay principal and interest on bonds or lease rentals or leases payable from tax increment revenues.
4. The Plan, as hereby amended, is hereby adopted as the economic development plan for the West Harrison Expansion Area and the Skally’s Bakery Allocation Area.

1. The base assessment date for the West Harrison Expansion Area will be March 1, 2015.  The base assessment date for the Existing West Harrison Allocation Area (not including the West Harrison Expansion Area or the Removed Parcels) shall remain unchanged.

1. The Commission also directs the Redevelopment Commission President or his representative to prepare or cause to be prepared statements disclosing the tax impact of the West Harrison Expansion Area and the Skally’s Bakery Allocation Area, including the following: (a) the estimated economic benefits and costs incurred by the West Harrison Expansion Area and the Skally’s Bakery Allocation Area, as measured by increased employment and anticipated growth of real property assessed values; and (b) the anticipated impact on tax revenues of each taxing unit that is either wholly or partly located within the West Harrison Expansion Area or the Skally’s Bakery Allocation Area.  A copy of these statements shall be filed with each such taxing unit with a copy of the notice required under Section 18 of the Act at least ten (10) days before the date of the public hearing described in Section 16 of this Resolution.

1. The Existing West Harrison Allocation Area, as expanded by the West Harrison Expansion Area and as reduced by the Skally’s Bakery Allocation Area, shall be deemed to continue as an existing allocation area designated as the “West Harrison Expanded Economic Development Area Allocation Area.”
2. The officers of the Commission are hereby directed to make any and all required filings with the Indiana Department of Local Government Finance and the Dearborn County Auditor in connection with the creation of the Skally’s Bakery Allocation Area and the expansion and reduction of the Existing West Harrison Allocation Area.
3. The Commission hereby finds that it will be of public utility and benefit to adopt the Amendment, and that the public health and welfare will be benefited by the Amendment. The Commission further finds and determines that the Amendment is reasonable and appropriate when considered in relation to the Plan and the purposes of the Act, and that the Plan, with the Amendment, conforms to the comprehensive plan for Dearborn County. The Commission hereby reconfirms the findings and determinations set forth in the Declaratory Resolution with respect to the Existing West Harrison Economic Development Area. 
4. The Amendment is hereby approved in all respects. The Plan, as amended by the Amendment, is hereby confirmed in all respects.
5. Any member of the Commission is hereby authorized to take such actions as are necessary to implement the purposes of this resolution, and any such action taken prior to the date hereof is hereby ratified and approved.
6. This Resolution, together with any supporting data, shall be submitted to the Dearborn County Plan Commission (the “Plan Commission”) and the Board of Commissioners of the County of Dearborn (the “Board of Commissioners”) as provided in the Act, and if approved by the Plan Commission and the Board of Commissioners shall be submitted to a public hearing and remonstrance as provided by the Act, after public notice as required by the Act.

Adopted this ____ day of November, 2015.

EXHIBIT A

WEST HARRISON EXPANDED ECONOMIC DEVELOPMENT AREA ALLOCATION AREA, AS EXPANDED BY THE WEST HARRISON EXPANSION AREA, AND AS REDUCED BY SKALLY’S BAKERY ALLOCATION AREA

(See attached)

EXHIBIT B

SKALLY’S BAKERY ALLOCATION AREA

(See attached)

EXHIBIT C

The 2015 Project consists of the following:  

1. Application of Tax Increment Revenues from the Skally’s Bakery Allocation Area to pay principal and interest on bonds to be issued on behalf of Odette, LLC and Maxwell LLC (or a related party).

Estimated cost: bonds in the approximate amount of $_______________. 

The project list for the Existing West Harrison Economic Development Area, as expanded by the West Harrison Expansion Area, the West Harrison Expanded Economic Development Area Allocation Area, as expanded and reduced, and the Skally’s Bakery Allocation Area is expanded to include any or all or any portion of the following, as determined from time to time by the Dearborn County Redevelopment Commission to be in furtherance of the redevelopment and economic development of the respective allocation area:

1. Necessary infrastructure that is in, serving or physically connected to the respective allocation area.  Although the precise nature of infrastructure that may be necessary from time to time to attract and retain prospective redevelopment and economic development opportunities in the respective allocation area cannot be predicted with certainty, the availability of adequate infrastructure is of fundamental importance in attracting and retaining such opportunities in the respective allocation area.

2.  Any demolition costs deemed necessary by the Redevelopment Commission.

3. The application of tax increment revenues to offset payments by developers on promissory notes or to make bond payments in connection with economic development revenue bond financings undertaken by the County in furtherance of the economic development or redevelopment of the respective allocation area.  The provision of incentives by the application of tax increment revenues to offset developer promissory notes that secure economic development revenue bonds or to make bond payments has become an established financing tool and an increasingly common form of incentive for attracting economic development and redevelopment.

4. Acquisition from the County of parcels owned by the County from time to time, on terms agreed to with the County.

Estimated cost:   $__________.

INDS01 1534113v2