Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Hotel Finance Reserves topic
No spam. Unsubscribe anytime.
Authority staff previews amendatory ordinance to set hotel project reserves; public hearing set for April 18
Summary
Staff described an amendatory ordinance tied to a previously approved hotel project that would establish a furniture/fixtures/equipment (FF&E) reserve, adjust renewal and replacement calculations, and change the debt-service reserve calculation. No board action was required at the meeting; a public hearing is scheduled for April 18.
Staff for the Indianapolis Airport Authority briefed the board on an amendatory ordinance related to a hotel project previously approved by the authority. Staff said the ordinance does not change the par value of prior approvals and requires no board action at the current meeting; it is intended to implement items required by the franchise agreement with the hotel developer and to set up new reserve accounts.
According to staff, the amendatory ordinance will establish an FF&E (furniture, fixtures and equipment) reserve account that does not exist in the current flow of funds. Because the new FF&E reserve will be separate, staff said they will adjust the calculation for the renewal and replacement (R&R) fund so the same dollars are not double-counted. Staff also said the ordinance will change the debt-service reserve calculation to match the assumptions used in the project's financial feasibility analysis.
Staff said the ordinance will be presented for a public hearing at the board's April 18 meeting. No formal action on the ordinance was taken during the March meeting.
