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HomeMy Public PortalAbout032-2017 - Amended - State - Brownfield - Demolition of former Reid buildingCOMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA AMENDED ORDINANCE NO.32-2017 AN APPROPRIATION ORDINANCE AUTHORIZING THE SUBMITTAL, ACCEPTANCE, AND APPROPRIATION OF LOAN FUNDS FROM THE INDIANA BROWNFIELDS PROGRAM STATE REVOLVING FUND WHEREAS, In accordance with Indiana Code (IC) 36-1-4-10, a municipality may execute any documents necessary to receive money from the state or federal government or any other source, and said documents are prepared and executed by the City executive administration, provided that the Common Council of the City of Richmond as the legislative body of the City approves an ordinance for the appropriation of any monies received in accordance with IC 36-4-6-18; and WHEREAS, The State of Indiana Finance Authority has zero -interest loan funds and low - interest loan funds available through its Brownfields Program State Revolving Fund (`Brownfields SRF"); and WHEREAS, On April 17, 2017, the Common Council of the City of Richmond, Indiana ("Common Council") approved an Interlocal Agreement with Wayne County, Indiana (Interlocal Agreement No. 002-2017), to agree to each fund fifty percent (50%) of a site evaluation of the former hospital site, which includes technical demolition support services; and WHEREAS, On June 5, 2017, the Common Council approved Amended Resolution No. 2- 2017 authorizing the City to proceed with the Brownfields loan application, which Amended Resolution established a Ten Million Dollar ($10,000,000.00) cap for any loan application submitted, and which Amended Resolution also set forth the City's anticipated repayment source from TIF funds; and WHEREAS, The City of Richmond expects to be approved for a twenty year, two -percent interest (2%) loan from the Brownfields SRF in the amount of Five Million Two Hundred Forty-eight Thousand Dollars and Zero Cents ($2,848,000.00) for the demolition of the former hospital site; and WHEREAS, The interest rates from the Brownfields SRF loans are lower than the interest rates the City could obtain on the open market; and WHEREAS, The designated repayment source is expected to be TIF funds to be approved by the Richmond Redevelopment Commission at its August 8, 2017, meeting; and WHEREAS, It is in the best interest of the City of Richmond, Indiana, and its citizens to accept and appropriate said funds for use in connection with the demolition of the former hospital site. NOW, THEREFORE, be it ordained by the Common Council of the City of Richmond, Indiana, as follows: 1. The City of Richmond Department of Infrastructure and Development has submitted or will submit, as authorized by IC 36-1-4-10, a loan application to the State of Indiana Finance Authority to obtain state Brownfields Program loan funds. 2. The City of Richmond Department of Infrastructure and Development is authorized to accept said loan funding with an interest rate of two -percent (2%) with a maximum interest rate of two and one -half -percent (2 '/2%) in an amount up to Five Million Two Hundred Forty-eight Thousand Dollars and Zero Cents ($2,848,000.00), plus cost of issuance, with the ability to increase said funding by ten -percent (10%) should the bids for such work reflect such a necessary deviation. 3. Said funds, if loaned, shall be appropriated to fund the demolition of the former hospital site. Passed and adopted this ,?_ day of 2017, by the Common Council of the City of Richmond, Indiana. President (Misty 14olle ATT ' , (Karen Chasteen, IAMC, MMC) PRESENTED to the Mayor of the City of Richmond, Indiana, this � day of , 2017, at 9:00 a.m. (Karen Chasteen, IAMC, MMC) APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this O - - day of ©C-rz? 2017, at-o•n�_U5_a m- gj,. j c , Mayor avi M. S w ATTE01 (Karen Chasteen, IAMC, MMC)