32-17 Economic Development Revenue Bonds (Studebaker Project)

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expanded allocation area the River West Development Area Allocation Area No. 1 in accordance with IC 36-7-14-39 ("Allocation Area") for the purpose of capturing property taxes generated from the incremental assessed value of real and depreciable personal property located in the Allocation Area("Tax Increment"). WHEREAS, the Issuer seeks to induce the Developer to complete the redevelopment and renovation of the Project (as hereinafter defined) as contemplated in the Plan by making the payment of the principal on the Bonds from TIF Revenues in the aggregate amount of $3,500,000 which have been pledged by the Redevelopment Commission for such purpose and such pledge is to be considered as a non-shareholder contribution to the Developer under Internal Revenue Code ("Code") Section 118. Upon finding that the Project and the proposed financing of the construction of a portion thereof will create additional employment opportunities in the City of South Bend, Indiana ("City"); will benefit the health, safety, morals and general welfare of the citizens of the City and the State of Indiana; and will comply with the purposes and provisions of the Act, the Issuer adopted an ordinance approving the proposed financing. The Issuer intends to issue its Taxable Economic Development Revenue Bonds, Series 2017 (Studebaker Project) ("Series 2017 Bonds") in the aggregate principal amount of $3,500,000 pursuant to the Trust Indenture dated as of June 1, 2017 ("Indenture") from the Issuer to 1st Source Bank, South Bend, Indiana, as Trustee ("Trustee") and intends to provide the proceeds of the Series 2017 Bonds pursuant to the provisions of this Financing Agreement to the Developer to finance a portion of the construction of the Project, in or physically connected to the Area. This Financing Agreement provides for the payment by the Redevelopment Commission of the principal on the Series 2017 Bonds from TIF Revenues (as hereinafter defined). Subject to the further provisions of this Financing Agreement, the principal on the Series 2017 Bonds will be payable solely out of TIF Revenues. In consideration of the premises, the use of the proceeds of the Series 2017 Bonds and of other good and valuable consideration, the receipt whereof is hereby acknowledged, the Developer has executed and delivered this Financing Agreement. This Financing Agreement is executed upon the express condition that if the Developer shall keep, perform and observe all and singular the covenants and promises expressed in this Financing Agreement to be kept, performed and observed by the Developer, then this Financing Agreement and the rights hereby granted shall cease, determine and be void; otherwise to remain in full force and effect. - 2 - I\11853148.2