Warsaw Issues Bond for New City Hall
July 28, 2016 at 4:25 p.m.
By Jennifer [email protected]
The council also approved a resolution to amend the current redevelopment district to include the former National City Bank building property on Buffalo Street.
The bond is for the remodeling of the former National City Bank building for the new city hall, according to Jeremy Skinner, city planner.
Councilman Kyle Babcock voted against issuing the bond and the declaratory resolution for the development plan.
Warsaw Redevelopment Commission will need to determine a time frame for the bond repayment at its Sept. 6 meeting at city hall.
The net proceeds from the bond will be $990,000; debt service reserve costs are $125,000; and bond issuance costs and contingencies is $126,950. Tax increment funds on hand are $1 million.
Warsaw Mayor Ernie Wiggins said there will be no tax impact to the taxpayer on the bond.
Todd Samuelson, Umbaugh & Associates, went over financing scenarios with the council for the bond.
He said financing for the city hall project is proposed to be funded by tax revenue from the downtown area.
He said the seven-year repayment plan that has been recommended by the redevelopment commission would cost the city $200,000 in payments per year.
Another scenario would be a 10-year repayment plan where the city could pay $140,000 to $150,000 per year.
Scenario three is a 15-year repayment plan that would cost the city $180,000 per year.
Randy Rompola, Baker and Daniels, said the former National City Bank building will be included in the new redevelopment area. The resolution for the redevelopment area will need to go back to the redevelopment commission for a public hearing and then there will be a confirming resolution.
Babcock asked how the city spent more money on the city hall than what is was appraised for when it wasn’t in the redevelopment district.
Rompola said the redevelopment statute says if the redevelopment commission plans to take on a project that is in the existing redevelopment area, it can exercise its redevelopment powers.
“We determined the area would serve the downtown redevelopment area by creating more foot traffic in and around the redevelopment area so we concluded legally while the project may not be physically located in the area it serves the area,” Rompola said.
He said the redevelopment commission could then exercise its powers, which would include the ability for the city to acquire property that is granted to the redevelopment commission.[[In-content Ad]]
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The council also approved a resolution to amend the current redevelopment district to include the former National City Bank building property on Buffalo Street.
The bond is for the remodeling of the former National City Bank building for the new city hall, according to Jeremy Skinner, city planner.
Councilman Kyle Babcock voted against issuing the bond and the declaratory resolution for the development plan.
Warsaw Redevelopment Commission will need to determine a time frame for the bond repayment at its Sept. 6 meeting at city hall.
The net proceeds from the bond will be $990,000; debt service reserve costs are $125,000; and bond issuance costs and contingencies is $126,950. Tax increment funds on hand are $1 million.
Warsaw Mayor Ernie Wiggins said there will be no tax impact to the taxpayer on the bond.
Todd Samuelson, Umbaugh & Associates, went over financing scenarios with the council for the bond.
He said financing for the city hall project is proposed to be funded by tax revenue from the downtown area.
He said the seven-year repayment plan that has been recommended by the redevelopment commission would cost the city $200,000 in payments per year.
Another scenario would be a 10-year repayment plan where the city could pay $140,000 to $150,000 per year.
Scenario three is a 15-year repayment plan that would cost the city $180,000 per year.
Randy Rompola, Baker and Daniels, said the former National City Bank building will be included in the new redevelopment area. The resolution for the redevelopment area will need to go back to the redevelopment commission for a public hearing and then there will be a confirming resolution.
Babcock asked how the city spent more money on the city hall than what is was appraised for when it wasn’t in the redevelopment district.
Rompola said the redevelopment statute says if the redevelopment commission plans to take on a project that is in the existing redevelopment area, it can exercise its redevelopment powers.
“We determined the area would serve the downtown redevelopment area by creating more foot traffic in and around the redevelopment area so we concluded legally while the project may not be physically located in the area it serves the area,” Rompola said.
He said the redevelopment commission could then exercise its powers, which would include the ability for the city to acquire property that is granted to the redevelopment commission.[[In-content Ad]]
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