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City sells North of South bonds, locks in 5.2-percent rate

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The city went to the bond market last month to sell $97 million in debt for the $155 million North of South hotel and retail project near the Eli Lilly and Co. campus.

Indianapolis Bond Bank Executive Director Deron Kintner said the city locked in a 5.2-percent interest rate for the bonds, most of which are tax-exempt. That’s a relatively solid rate, given the recent turmoil in the municipal bond market, Kintner said. The city sold during the brightest period in the market since October.

“We wanted to get it done as quickly as we could to increase the likelihood that we were getting in the market during that window,” Kintner said.

The city is providing the loan—guaranteed with property-tax revenue from a downtown development district—to Indianapolis developer Buckingham Cos., which will pay off the debt and interest with project revenue. The project includes a boutique hotel, retail, apartments and a YMCA.

The $97 million includes $86 million for the project, plus issuance costs and capitalized interest so bondholders can be paid before the project generates revenue.

Kintner said the city expects to close on the sale April 7.

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  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

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