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SRA Approves $3 Million BAN
(posted 7.21.09)
The Speedway Redevelopment Authority issued a new Bond Anticipation Note
for $3 million at its July 20 meeting to continue redevelopment plans.
The $5.75 million BAN issued in November 2008 has been spent, according
to Barnes and Thornburg Attorney Jim Gutting.
He explained the $3 million BAN is tax exempt because it will be used for
public improvements to fund completion of engineering designs for Main
and 16th Streets. The interest rate will be two percent. The SRA's action
has pushed the redevelopment's debt close to $9 million.
At the June 13 town council meeting, Speedway Redevelopment Commission
Executive Director Scott Harris said Key Bank renewed the $5.75 million
BAN, which means the SRC received a 90 day extension on paying the principle,
but continues to make interest payments. The SRC expects to repay the notes
from tax increment financing revenues, but the commission is experiencing
a delay due to the state-wide reassessment problems that started two years
ago.
At the July 20 redevelopment commission meeting, Harris said the SRC would
not have access to the full $3 million because a $15,000 issuance cost
would be deducted. Harris indicated the BAN closing will be on July 22,
none of the money will be used to retire the previous debt.
The redevelopment commission still expects to proceed with the redevelopment despite the resignation of IMS CEO Tony George and the July 20 resignation announcement of IMS President Joie Chitwood.
Commission President Vince Noblet said the entire westside will benefit
from the redevelopment besides the major stakeholders of IMS, Allison Transmission
and Praxair. His statement came when asked about leadership changes at
the IMS.
Noblet explained that whether or not the IMS decides to invest, infrastructure changes are still needed at Georgetown and Crawfordsville Road, as well as a direct connection to the IMS.
Resident Marcella Howard said she has watched the town deteriorate over
the 50 years she has resided here. She commended the redevelopment commissioners'
efforts.
Susan Luebbert asked if the town would be financially responsible to relocate utilities if Allison Transmission builds structures on the vacated Grande Avenue. Commissioner Ron Fisher replied that Allison would have to pay the relocation costs.
The SRC also decided to table the confirmatory resolution that would have
merged Area 1 and 2 into one TIF area. The commissioners changed their
minds at the recommendation of Harris, who said there is no need at this
time.
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