No. 2195 pledging certain tax increment revenues to repayment of a section 108 loan from U.S. department of housing and urban development

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RESOLUTION NO. ``'1 ) 9 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION PLEDGING CERTAIN TAX INCREMENT REVENUES TO THE REPAYMENT OF A SECTION 108 LOAN FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the South Bend Redevelopment Commission (the "Commission "), the governing body of the South Bend Department of Redevelopment (the "Department ") and the South Bend Redevelopment District (the "Redevelopment District "), exists and operates under Indiana Code 36 -7 -14, as amended from time to time (the "Act "); and WHEREAS, the Commission has previously designated and declared an area in Redevelopment District known as the Sample -Ewing Development Area to be a redevelopment area and an allocation area (the "Area ") for purposes of tax increment financing and established an allocation fund for said Area (the "Allocation Fund "), all pursuant to a resolution adopted by the Commission on April 16, 1993, as amended and superceded by resolutions adopted thereafter in accordance with the Act; and WHEREAS, on October 13, 2000, the Commission pledged the tax increment revenues generated in the Area and allocated to the Commission (the "Tax Increment Revenues ") to the payment of a Section 108 Loan Guarantee provided by the Department of Housing and Urban Development ( "HUD "), which pledge expires in 2011 (the "Prior Pledge "); and WHEREAS, the City of South Bend, Indiana (the "City ") has submitted an. application to HUD for another Section 108 Loan Guarantee (the "Section 108 Loan ") in the amount of Eleven Million Nine Hundred Eighty Thousand Dollars ($11,980,000), the proceeds of which are to be used for the acquisition, demolition, remediation and redevelopment of property blighted structures and property located in the area commonly known as the Studebaker /Oliver Project Area in the Area (the "Project "); and WHEREAS, the Commission anticipates that sufficient Tax Increment Revenues will be available to pay a portion of the principal of and interest on the Section 108 Loan and the Prior Pledge; and WHEREAS, the Commission desires to pledge such Tax Increment Revenues to the City for its use in order to pay a portion of the principal of and interest on the Section 108 Loan; and BDDB01 4219191v]