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Redevelopment commission approves escrow to defease industrial-park bonds, authorizes signature
Summary
At its February meeting the Batesville Redevelopment Commission approved moving forward with an escrow agreement to defease roughly $1.98 million in industrial-park bonds and authorized the commission president or vice president to sign final documents, subject to verification and fee clarifications.
At its February meeting the Batesville Redevelopment Commission voted to authorize an escrow agreement to defease about $1.98 million in outstanding industrial-park bonds and to permit the commission president or vice president to sign the final documents once verification is complete.
The action followed a staff presentation explaining that municipal advisers Baker Tilly drafted the escrow and would verify the $1,980,000 funding figure. Staff (Staff member (Speaker 2)) told the commission Baker Tilly would charge a $2,500 validation fee to confirm the required amount and an additional $5,000 fee to arrange investments for the escrow account. A broader advisory/implementation services allowance of up to $25,000 was also discussed.
"As I understand, they will go through check Baker Tilly's mat ... the cost of that is $2,500, but that will validate the $1,980,000 number that's been provided by Baker Tilly," Staff member (Speaker 2) said. Commissioners asked for clarity on when specific fees are payable and whether travel and other expenses would be capped; staff said some fees are rendered as services are performed and that earlier payments have already been made on the project.
Commissioners also questioned who would make day-to-day investment decisions for the escrow and whether the escrow trustee or the RDC would be the point of contact. Staff said the escrow account would be held under the City of Batesville's name and that the trustee and bondholders would be entitled only to amounts due; any surplus would be city property. Chair (Speaker 3) moved to grant signature authority to the president or vice president, subject to satisfactory answers to outstanding questions; the motion was seconded and carried.
The commission directed staff to obtain the Baker Tilly validation, provide the requested fee and expense clarifications, and to finalize the resolution with the confirmed escrow amount. Staff also said the verification agent (identified in the presentation as Causey/Qazi) would be retained to validate the exact funding amount before the final resolution is executed.
Next steps: staff will return with confirmations of the verified escrow amount, a timeline for payments and a clearer schedule of Baker Tilly billables so the commission can execute the escrow and proceed with defeasance.
