The Whitestown Redevelopment Authority voted to approve Resolution 2025-01 authorizing issuance of not-to-exceed $33,000,000 in bonds to finance public infrastructure for the Padgett Commons project.

The resolution authorizes the authority to issue bonds with a term of up to 25 years and an interest-rate cap of 7 percent; municipal advisors advised the authority that the bonds are likely to carry an interest rate closer to about 4.5 percent given current market conditions. The resolution and related documents include two lease agreements: a site lease between the Redevelopment Authority and the Town of Whitestown, and a financing lease between the Redevelopment Commission and the Redevelopment Authority. Those leases assign lease payments to a bond trustee to service the bonds.

During discussion, Dennis, a staff member, described the Redevelopment Authority’s role in the financing structure: “The redevelopment authority is really what we would call a lease financing body.” Cody Adams, who serves on the authority, summarized the repayment plan: “The plan is to finance this through bonds, 33 up to $33,000,000 in bonds, and that's gonna be the responsibility as opposed to being levied through property tax.”

According to staff, tax-increment financing (TIF) revenues are intended to be the primary source of debt service; the resolution also includes a property-tax pledge as a marketable backstop so investors will view the bonds as more secure. Staff said consolidation of several TIF areas for this project is complete, and those consolidated TIF revenues are expected to provide sufficient payment streams so the property-tax pledge is not expected to be invoked. The resolution allows for customary financing features — a capitalized reserve, capitalized interest if needed, and a not-to-exceed annual lease payment that will be trued up after bond pricing.

Town staff noted the TIF pledge will be subordinate to any outstanding obligations that already rely on those revenues. Municipal advisors Kron and Associates were identified in the discussion as advising on marketability and repayment assumptions. Staff also said the financing and leases follow market practice so rating agencies and insurers will be comfortable with the structure.

The authority moved and seconded approval of Resolution 2025-01 and the motion was approved during the meeting; the transcript records staff comment that the project and related actions had also been approved by the Redevelopment Commission after a public hearing. The next steps described in the meeting are completion of bond pricing, a lease addendum to match actual debt service, and typical closing procedures to deliver proceeds for the Padgett Commons public infrastructure work.