In Carmel, there are conversations about what some city officials are referring to as a bailout. The city's redevelopment commission is asking the city council to allow them to refinance $195 million of its debt.
"That's why [the] council is involved because no one wants the city's name to be out there in a negative fashion," said Eric Seidensticker, a Carmel City Council Member.
The commission has been critisized by some council members for overspending and putting Carmel taxpayers at risk.
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"They don't have enough money to cover operations right now so if you look at the entire entity, they can't make ends meat," said Seidensticker.
On Monday,the council is expecting some important financial information that will reveal more about the 20 obligations listed on the agenda that would be included in the refinancing package.
The redevelopment commission entered into some of those agreements as far back as December 2008.
A city spokesperson said the majority of the $195 million debt was for projects at City Center including, but not limited to, the land purchase and development of the Center for the Performing Arts buildings (Palladium, Tarkington Theater, Studio Theater, theater building garage, office building portion of James Building, streets, garage under the Pedcor section of City Center, streets and storm sewers, sidewalks and other elements of street scape at City Center), both east and west of the Monon.
"Instead of paying six to nine percent, they could have gone through the city and gotten three, four or five percent," said Seidensticker.
The refinancing package does not include all of the commission's debt, but it could potentially free up millions of dollars.
Still, John Accetturo, an accountant and former council member, is not convinced his former colleagues efforts could make a difference, and he claimed Friday that it may make a risky situation even riskier.
"Even with the refinance, they won't have enough money to pay off all the debt they need to repay," Accetturo said.
"I have a lot of people that say let them go under. I understand that, but there's an obligation not only to the individual taxpayer but to the city as a whole," said Seidensticker.
The redevelopment commission president Bill Hammer said they have been conservative with their spending, and he does not believe they have put Carmel taxpayers at risk.
He also said they are current on all debt repayments at this time.
Before the council can approve the refinancing package that has been proposed, the public will have a chance to weigh in at a council meeting.
