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Fishers City RDA approves up to $65 million in bonds to finance community center
Summary
The Fishers City Redevelopment Authority approved parameters for up to $65 million in lease-rental revenue bonds to fund acquisition of a community center at 120 First Street and Hoosier Road; the Redevelopment Commission will consider parallel approvals later the same day.
FISHERS CITY — The Fishers City Redevelopment Authority on June 9 approved a resolution setting parameters for lease-rental revenue bonds not to exceed $65,000,000, with a maximum interest rate of 6 percent and a 20-year term, to finance acquisition of a community center at 120 First Street and Hoosier Road, authority staff said.
The measure authorizes the authority to accept the form of a lease agreement and a trust indenture that will govern the financing and bond repayment through lease rentals under that lease. "This is a resolution which approves the terms of a financing, which the city is in in the process of going through the approvals of," said Dustin, a staff member presenting the item to the authority.
Why it matters: The Redevelopment Authority (RDA) typically serves as the bond-issuing entity for redevelopment-area projects. The authority's action sets the maximum size, rate and length for the bonds; the City and the Redevelopment Commission (RDC) must complete parallel approvals as part of the broader financing and acquisition process.
Dustin told members the city procured construction of the community center and will acquire the completed facility from the developer as the financing is finalized. He said the resolution includes the proposed lease agreement (which will generate lease rentals) and the trust indenture (which will govern the financing). The authority approved the resolution after staff presentation; a motion to approve was made, seconded and carried. No recorded roll-call votes were provided in the meeting record.
The agenda listed the item under "public hearings" for the RDA, but staff clarified the published public hearing requirement belonged to the RDC's meeting later in the day. The authority opened the floor for comment "just to make sure we don't cause any issues," then closed the hearing without any public speakers, and proceeded to vote.
The meeting also included routine housekeeping: members approved the previous meeting minutes, carried a motion to keep officer roles and signatures the same for the coming year (members did not identify specific new officers during the meeting), and adjourned. Rex Grama, a member of the authority, called the meeting to order.
Next steps: The Redevelopment Commission will consider parallel actions related to the lease and financing later the same day. The RDA action sets the financing parameters but does not itself effect transfer of the facility; final terms and sale/acquisition steps will follow the commission and city approvals.
