Redevelopment Authority Conducts First Meeting

(posted May 20)

The Speedway Redevelopment Authority conducted its first meeting despite a legal opinion by the Hoosier State Press Association questioning the meeting's legality in regards to a possible violation of the Open Door Law's 48 hour advance notice requirement. Neither the Speedway Navigator nor the Indianapolis Star were notified in time to meet the 48 hour rule.

The Authority's attorney, Jim Gutting, disagreed with the Hoosier State Press Association's comments that it did not comply with the open door law. He said the clerk treasurer is not the "guarantor" that information is sent. He argued that sufficient time was given because the press was present at the meeting. Prior to the meeting, Gutting told the SRA that to call a meeting, 48 hour notice must be given, including the media.

The authority first conducted its organizational meeting making Ed Frazier president,Ernest Williams vice-president and Jerry Urick secretary. Williams requested that Clerk Treasurer Sharon Zishka be responsible for meeting notices and manager of the records for the authority. The president will call meetings as needed. Williams explained that the $62 million bond is "a big nut" for Speedway so who ever is responsible make an extra effort with local media to get the information to keep the people apprised of what is going on. He also noted that he has visual problems and that he cannot read documents handed to him at the last minute because he needs to read them on a computer magnifier. He said he received the lease agreement in sufficient time to read it prior to the meeting. The leasing arrangement makes the SRA the lessor and the SRC the lessee.

The authority approved entering into a master lease with the redevelopment commission to start making infrastructure improvements for Main Street, Crawfordsville Road and the realignment of 16th Street.

Gutting said the $62 million with its $6,000,000 annual lease payments would be the worst case scenario to bond for the project. He said the bonding would be done in smaller increments based on the tax increment revenues and use of other revenues. The money has to be spent within 2 years of the issuance.

The property tax back up is for marketing purposes and it was repeated several times that a special benefits tax will not be levied because there will be sufficient tax increment revenues to cover the bonds.

Herschel Frierson of Crowe Chizek said a reserve debt service fund is required to cover a full year of principle and interest. He said using property taxes as a back up provides a better interest rate.

Within an hour Frierson and Gutting were explaining the procedure at the Speedway Redevelopment Commission's public hearing meeting. Gutting said a bank trustee like JP Morgan or National City would actually be handling the bond funds. "Part of this $62 million, which (is) roughly $6 million if you look at the whole number, goes into a pot in the hands of the trustee, and that mount of money is invested as a debt service reserve fund."

SRC Executive Director Scott Harris said the first bonds would be needed for acquisition of right-of-way, subsurface utilities relocation, and final design phase.

It was also announced at the meeting that the SRC is planning to conduct a special meeting Wednesday May 21 at
4 pm to discuss master developers for Area Two. However, Harris asked if the Navigator received notice, which the paper has not. It was also not posted at the library.