Carmel’s City Council on Monday night voted 7-0 to approve a proposal to refinance $195 million in debt incurred by the Carmel Redevelopment Commission.
The debt re-issue would free up millions of dollars for further development of the massive City Center project.
The refinancing package comes after Mayor James Brainard agreed this spring to give the council oversight of future debt obligations by the Carmel Redevelopment Commission.
The commission had rung up about $140 million of debt without council approval but this year began to find its revenue streams stretched thin. With the city’s backing, the commission can refinance debt on which it’s paying 6 percent to 9 percent interest.
Brainard said he expects the refinancing to free up from $10 million to $17 million, depending on the final interest rates.
The redevelopment commission has about $240 million in debt, but not all of it is included in the package considered by the council. The $195 million would cover refinancing-related fees and a list of 20 obligations entered into since late 2008.