Schedule of Hearings for City's $98 Million Loan (Plus $45 Million Incidentals) for No-So Project

The sweetheart deal proposed for the developer of the North of South project, is working its way simultaneously through the Metropolitan Development Commission and the City-County Council.

See my October blog entry for more details of the project ("North of South - Details of the Proposed Deal"). Briefly, the deal is this: the City will float a bond up to $98 million, loan the No-So developer up to $86 million, pay the first three years of interest only payments from the proceeds of the bond, put in $9 million of infrastructure, pay Eli Lilly $14 million from an old loan on the Harding Street TIF (which Lilly will give to the developer), turn over its $5 million in proceeds from the area being designated a 'Certified Technology Park' to the developer, and help the developer pay the loan back by applying 100% of all property taxes collected in the area for 10 years. This is the project that was rejected by all financial institution(s) approached by the developer. The City would get a first mortgage on the development, but Eli Lilly would retain ownership of the land - so if there is a default by the developer, the City would become owner of partially completed buildings and have to pay the bonds off from property taxes collected elsewhere in the consolidated downtown TIF.

The MDC will take up the issue at its Economic Development Committee meeting at 8:30 am, Wednesday, December 1, 2010 (room 2001 of the CCB). They are expected to consider and vote on the deal that afternoon at 1:00 pm at their regularly scheduled MDC meeting (public assembly room of the CCB). The rezoning of this property will not be heard until December 15. The reason the zoning is claimed not to be required prior to voting on the deal, is that there is no abatement involved. Because Mayor Ballard's crew simply decided not to call the 10 year, 100% return of property taxes, an 'abatement', allows them to slide on the laws regulating such things, and to avoid protections built in for the taxpaying public.

The Memorandum of Understanding underlying this deal is posted here (you will have to put in a google account to access - so if you prefer, just email me at hadenoughindy@gmail.com and I'll send you a copy directly).

The Council has already introduced Prop 292, and assigned it to their Economic Development Committee, which next meets on December 15, 2010 (5:30 in room 260 of the CCB). The full Council would presumably take it up at its December 20 meeting - just in time for opening presents by Lilly and the No-So developer, but not the taxpayers of Indianapolis.