6B(1) Resolution No. 2805 - Laserfiche WebLink

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respect to property located in a designated recovery zone and certain other expenditures identified in Section 140OU -2 of the Code (each of such expenditures being referred to herein as a "Qualified Economic Development Purpose "); and WHEREAS, the City received an allocation for recovery zone economic development bonds of Four Million Nine Hundred Eight -three Thousand and 00 /100 Dollars ($4,983,000) (the "Volume Cap "); and WHEREAS, the Common Council adopted Resolution No. 4019 -10 on March 22, 2010, designating the entire geographic area of the City as a Recovery Zone for purposes of Section 1400U -1(b) of the Code, which would include the Area; and WHEREAS, the Project qualifies as a Qualified Economic Development Purpose; and WHEREAS, issuance of the Bonds as Recovery Zone Economic Development Bonds will permit the Redevelopment District to receive a credit from the United States Treasury in an amount equal to 45% of the stated interest to be paid on such Bonds as provided by Sections 140OU -2 and 6431 of the Code (the "Recovery Zone Economic Development Bond Subsidy Pyament "); NOW THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: SECTION 1. For the purpose of procuring funds to pay for the cost of the redevelopment and economic development in or serving the Area, including without limitation the Project, together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the redevelopment and economic development in or serving the Area, including the total cost of all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount and supervisory expenses, capitalized interest and a debt service reserve for the Bonds (to the extent that the Commission determines that capitalized interest and /or a reserve is reasonably required), together with the expenses in connection with the issuance of the Bonds therefor, the City acting for and on behalf of the Commission, shall provide for the issuance of Bonds in an aggregate principal amount not to exceed Four Million Nine Hundred Eighty Thousand and 00/100 Dollars ($4,980,000.00). The Bonds shall be issued on a taxable basis as Recovery Zone Economic Development Bonds. In order to procure funds for said loan, the Controller of the City (the "Controller ") is hereby authorized and directed to have prepared and to issue and sell the negotiable bonds of the Redevelopment District, which Bonds shall be issued in the name of the City, for and on behalf of the Redevelopment District and which shall be designated "South Bend Redevelopment District Taxable Revenue Bonds, Series 2010 (Recovery Zone Economic Development Bonds)" with an aggregate principal amount not to exceed Four Million Nine Hundred Eighty Thousand and 00 /100 Dollars ($4,980,000.00), and which amount (together with investment earnings thereon) does not exceed the cost, as estimated by the Commission, of the redevelopment and economic development in or serving the Area, including without limitation the Project, together with a sum sufficient to pay the estimated cost of all expenses reasonably BDDB01 6406657v2 - 2 -