![Noblesville City Council Approves TIF District Consolidation and Event Center 7 Lease Rental Bonds CiN 0109 COM Event Center Financing](https://youarecurrent.com/wp-content/uploads/2024/01/CiN-0109-COM-Event-center-financing.jpg)
Rendering of Innovation Mile’s Noblesville Event Center. (Photo provided by City of Noblesville)
The Noblesville City Council approved a financial framework to pay for the Noblesville Event Center at its Dec. 19 meeting.
City Attorney Jonathan Hughes said the event center, which is part of Innovation Mile, a business and technology hub, has three sources of income. One is a 10-year lease from the Pacers G League team. community event. and TIF funding.
“This is a priority project for all of us, not only inside City Hall but outside of City Hall, to revitalize and promote the Innovation Mile on the far east side of Noblesville,” Mayor Chris Jensen said at the meeting. ” he said.
Jensen said the funding structure has four requirements. Tax rates had to be maintained. Support the City in continuing to move forward with the Pleasant Street Project. Support the City in continuing to move forward with new public safety facility construction projects. And it preserves the city’s ability to proceed with other capital projects without taking resources away from them.
Hughes said the event center will be financed through the issuance of lease and rental bonds. Debt service on the bonds will be paid with TIF proceeds.
Lease financing system
Hughes said the city will transfer certain properties to the Community Development Corporation and Redevelopment Authority. Both parties will make payments to the city for these assets.
Hughes said the city and the redevelopment commission will then lease the property for a fixed lease fee. Facility lease payments will be used to repay the debt.
“Lease-rental financing is a commonly used strategy to keep interest costs low,” Hughes said.
The buildings that will be transferred and leased back to the city as part of the project include:
- Noblesville Fire Department 71, 135 S. 9th St.
- Noblesville Fire Department 72 (400 S. Harbor Dr.)
- Noblesville Fire Department 73, 2101 Greenfield Avenue.
- Noblesville Fire Department 74, 20777 Hague Rd.
- Noblesville Street Department Salt Barn, 12575 E. 166th St.
While ownership will change, there will be no other operational changes, Hughes said. Once the event center is built, the facility will be returned to the city and the event center will remain a leased asset.
Mr Hughes said certain roads would also be leased for parking and certain infrastructure funding.
TIF district integration
The TIF districts that will be integrated into the Integrated Economic Development Area are:
- Noblesville Downtown Assignment Area
- Central 146th Street Assignment Area
- Town center allocated area
- Bergen-Tegler allocation area
- Stoney Creek Allocation Area
- Commerce Park Assignment Area
- Corporate Campus West Assignment Area and SMC Assignment Area
- Hazel Dell Allocation Area
- Corporate Campus East Assigned Area
The event center is located within an integrated economic development area.
“This means the city can use TIF revenue received from anywhere within the integrated economic development area to finance projects,” Hughes said. “Essentially, the city will be able to utilize the funds it has already received in the areas it was already planning to receive, without having to expand the TIF area or apply it to new properties.”
Hughes said the event center is expected to be completed in 2025.