The Noblesville City Council approved the financial framework to pay for the Noblesville Events Center at its Dec. 19 meeting.
City attorney Jonathan Hughes said the events center, part of the business and technology hub Innovation Mile, will have three revenue sources: a 10-year lease from the Pacers G-League team; community events; and TIF funding.
“This is a priority project for all of us here within City Hall and even outside City Hall as we go to really revitalize and catalyze Innovation Mile on the far east side of Noblesville,” Mayor Chris Jensen said at the meeting.
Jensen said he had four requirements for the financing structure. It needed to maintain the tax rate; help the city continue progress with the Pleasant Street project; help the city continue progress with the new public safety building project; and maintain the ability for the city to move forward with other capital projects and not take resources away from that.
The events center will be financed through the issuance of lease rental bonds, Hughes said. The debt service on the bonds will be paid using TIF revenues.
Lease financing structure
Hughes said the city will transfer certain assets to the Community Development Corp. and the Redevelopment Authority. Both will make payments to the city for those assets.
The city and its Redevelopment Commission will then lease the assets by making certain lease rental payments, according to Hughes. The lease payments for the facilities will pay the debt service on the bonds.
“Lease rental financing is a commonly used strategy that keeps interest obligations low,” Hughes said.
The buildings being transferred and leased back to the city as part of the project are:
- Noblesville Fire Station 71 at 135 S. 9th St.
- Noblesville Fire Station 72 at 400 S. Harbor Dr.
- Noblesville Fire Station 73 at 2101 Greenfield Ave.
- Noblesville Fire Station 74 at 20777 Hague Rd.
- Noblesville Street Department Salt Barn at 12575 E. 166th St.
The ownership will change, but no other operational changes will happen, Hughes stated. Once the events center is constructed, the facilities are transferred back to the city and the events center remains a leased asset.
Hughes stated that certain roads will also be leased to finance the parking garage and certain infrastructure.
TIF district consolidation
The TIF districts being consolidated into the Consolidated Economic Development Area are:
- Noblesville Downtown Allocation Area
- Central 146th Street Allocation Area
- The Town Center Allocation Area
- The Bergen-Tegler Allocation Area
- Stoney Creek Allocation Area
- The Commerce Park Allocation Area
- The Corporate Campus West Allocation Area and the SMC Allocation Area
- The Hazel Dell Allocation Area
- The Corporate Campus East Allocation Area
The events center is in the Consolidated Economic Development Area.
“This means the city can use TIF revenues received from anywhere in the Consolidated Economic Development Area to finance the project,” Hughes said. “Essentially, it allows the city to leverage funds it is already receiving in areas it was already planning to receive those funds without expanding the TIF area or applying it to new properties.”
Hughes said the events center is scheduled to be completed in 2025.