A city-county council committee is set to hear public testimony Wednesday on Indianapolis Mayor Greg Ballard’s plan to issue $98 million of bonds for a mixed-use development, which includes a new corporate campus for Eli Lilly and Co.
The Economic Development Committee is scheduled to consider the borrowing proposal at its 5:30 meeting. The meeting is for public testimony only and no vote is expected. Under the current plan, Indianapolis would float up to $98 million of tax-increment financing bonds to fund construction of a new campus for the pharmaceutical giant, which is the city’s largest private employer.
The so-called North of South development would feature a boutique hotel, a new YMCA, apartments and retail space. The full project would cost $155 million and feature financing from a variety of private and public sources.
JPMorgan would be senior underwriter on the offering. Horwath LLP is financial adviser and Barnes & Thornburg LLP is bond counsel.
The debt would feature a pledge of revenue from Indianapolis’ sprawling and lucrative downtown TIF district. The city does not expect to tap the existing revenue. The deal would also carry a moral obligation pledge from the triple-A rated municipality. The developer is expected to make most of the debt-service payments from income generated by the project.
The committee Wednesday will also likely consider Ballard’s plan to issue $45 million of tax-increment finance revenue bonds to finance a separate development called the Harding Street Project.