Mayor Charlie Wyatt

Notice of Preliminary Determination of the City to Enter Into Lease with the City Redevelopment Authority

NOTICE OF PRELIMINARY DETERMINATION OF THE CITY OF BOONVILLE REDEVELOPMENT COMMISSION TO ENTER INTO, AND EXECUTION OF, A LEASE WITH THE CITY OF BOONVILLE REDEVELOPMENT AUTHORITY

Owners of real property, and registered voters residing in, the City of Boonville Redevelopment District (the “District”), are hereby given notice that the City of Boonville Redevelopment Commission (the “Commission”), the governing body of the District, having held meetings and two separate public hearings pursuant to Indiana Code 6-1.1-20-3.5 and Indiana Code 5-3-1, on November 9, 2023, at 4:00 p.m. in the Boonville City Hall, 135 South Second Street, Boonville, Indiana, adopted a resolution (the “Resolution”) making a preliminary determination that (a) a need exists for the planning, designing and construction of local public improvements to be located in the City of Boonville, Indiana (the “City”) consisting of a new aquatics center; park improvements, including playground equipment, dog park, security cameras, shelters, bathrooms, skate parks, pocket parks, trails and bike paths, and land acquisition; security improvements including security cameras for all City properties; and City murals and other public art/decorative improvements for municipal purposes (collectively, the “Project”), and (b) to the extent permitted by law to take all of the necessary steps to finance all or a portion of the costs of all, of the Project by entering into a proposed lease (the “Lease”) between the City of Boonville Redevelopment Authority, as lessor (the “Authority”), and the Commission, as lessee, relating to the lease of certain real estate and improvements as described therein.  If a Lease is fully effective, the Authority will issue one or more series of lease rental bonds secured by and payable from the lease payments under the proposed Lease (the “Bonds”).  The effectiveness of the Lease will be conditioned upon the Commission completing all legal steps necessary under Indiana Code 6-1.1-20-3.5 and Indiana Code 36-7-14 and 36-7-25 (collectively, the “Act”) necessary for the Lease to become fully effective.             

The Commission’s lease payments under the Lease will be payable from a special tax levied and collected by the Commission on all taxable property within the geographical boundaries of the District pursuant to Indiana Code 36-7-14-27.  The total maximum original aggregate principal amount of the Bonds will not exceed $15,000,000.  The maximum term for the Lease will not exceed twenty (20) years commencing on the date of issuance of the Bonds.  Based on the estimated interest rates that will be paid in connection with the Bonds of 7.00% the total interest cost associated therewith, is $14,437,616.67, not taking into account any funds of the District or Authority being available for capitalized interest, if any.  The maximum annual lease rental to be paid by the Commission under the Lease is $2,000,000 and the maximum total lease rental over the term of the Lease is $30,000,000, not taking into account any funds of the Authority available for capitalized interest, if any. 

The District’s current debt service levy is $749,704 and its current debt service tax rate is $0.2766 per $100 of assessed valuation.  The estimated amount of the District’s debt service levy and rate that will result during the following ten (10) years if the Lease is fully effective (considering any changes that may occur to the debt service levy and rate during the same period on account of any outstanding bonds or lease obligations that mature or terminate during said ten (10) year period) is as follows:

 

Debt Service Levy

(assuming the Lease is not effective)

Debt Service Levy

(assuming the Lease is effective)

Debt Service Rate

(assuming the Lease is not effective)

Debt Service Rate

(assuming the Lease is effective)

2024

$759,300

$1,484,300

$0.2601

$0.5103

2025

554,000

1,741,000

0.1905

0.5985

2026

548,000

1,814,000

0.1884

0.6236

2027

551,000

1,811,000

0.1894

0.6226

2028

554,000

1,808,000

0.1905

0.6216

2029

550,000

1,805,000

0.1891

0.6205

2030

546,000

1,803,000

0.1877

0.6199

2031

547,000

1,814,000

0.1881

0.6236

2032

546,000

1,810,000

0.1877

0.6223

2033

0

1,811,000

0.0000

0.6226


If the Lease is effective, the estimated increase to the District’s debt service levy over the debt service levy that would have been in place had the Lease not been effective will be $1,270,000 and the estimated increase to the District’s debt service rate over the debt service rate that would have been in place had the Lease not been effective will be $0.4400 per $100 of assessed valuation.  The percent of the District’s current annual debt service payments compared to the net assessed value of taxable property within the District is approximately 0.26%, and the percent of the District’s projected annual debt service payments if the Lease is effective compared to the net assessed value of taxable property within the District is approximately 0.62%, which is 57.9% above what the percent would have been had the Lease not been effective, taking into account the final maturity of other existing obligations.  The percent of the District’s outstanding long term debt, together with the outstanding long term debt of other taxing units that include any of the territory of the District, compared to the net assessed value of taxable property within the District is approximately 8.36%.

Petitions requesting the application of the local public question process to the proposed Lease and/or debt service payments related to the Project may be filed with the Warrick County Voter Registration Office within thirty (30) days after the date of publication of this notice in the manner provided by Indiana Code 6-1.1-20-3.5.  If a sufficient petition requesting the application of the local public question process to the proposed Lease and or debt service payments related to the Project has been filed as set forth in Indiana Code 6-1.1-20-3.5, the proposed Lease and/or debt service payments related to the Project must be approved in an election on a local public question held under Indiana Code 6-1.1-20-3.6.  In the event that a sufficient petition requesting the application of the local public question process to the proposed Lease and/or debt service payments related to the Project has been filed as set forth in Indiana Code 6-1.1-20-3.5, the question currently recommended by the Commission to be submitted to the registered voters at the election conducted under Indiana Code 6-1.1-20-3.6 is as follows: “Shall the City of Boonville Redevelopment Commission (the “Commission”), Warrick County, Indiana, governing body of the City of Boonville Redevelopment District (the “District”), increase property taxes paid to the District by homeowners and businesses?  If this public question is approved by the voters, the average property tax paid to the District per year on a residence would increase by 0% and the average property tax paid to the District per year on a business property would increase by 0%.  The Commission may enter into a lease to finance  a new aquatics center; park improvements, including playground equipment, dog park, security cameras, shelters, bathrooms, skate parks, pocket parks, trails and bike paths, and land acquisition; security improvements including security cameras for all City of Boonville properties, which is estimated to cost $15,000,000 over a 20 year lease term.  No property tax referendum within the boundaries of the District has been previously proposed or considered with respect to this matter.”

Notice is further given that the Lease has been executed by the Commission and the Authority.  The effectiveness of the Lease will be conditioned upon the Commission completing all legal steps necessary under Indiana Code 6-1.1-20-3.5 and the Act necessary for the Lease to become fully effective.  After public hearings held on the proposed Lease by the Commission on November 8, 2023 and November 9, 2023, at which all interested parties were provided the opportunity to be heard, the Commission adopted a resolution, which among other things, authorized and directed the President and Secretary of the Commission to execute and deliver the Lease in substantially the form presented to the meeting and further found that the rental payments to be made by the Commission are fair and reasonable and that the use of the leased premises under the Lease throughout the term thereof will serve the public purposes of the City and is in the best interests of the residents of the City.  The Common Council of the City adopted a resolution approving the Lease on November 9, 2023.  The annual lease rentals due under the Lease will exceed $5,000. 

This Notice is being provided to affected taxpayers pursuant to Indiana Code 36‑7‑14-25.2, Indiana Code 6-1.1-20-5 and Indiana Code 6-1.1-20-3.5.  The Lease is open to public inspection at the City Hall, located at 135 South Second Street, Boonville, Indiana. 

Dated:   November 9, 2023.

CITY OF BOONVILLE REDEVELOPMENT COMMISSION