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

Home Browse Search

• WHEREAS, the Commission shall have no other obligation with respect to the payment of principal of or interest on the Section 108 Loan other than the payment of the Tax Increment Revenues which may be generated in the Area; NOW, THEREFORE, BE IT RESOLVED, by the South Bend Redevelopment Commission as follows: 1. The Commission hereby irrevocably pledges the Tax Increment Revenues generated in the Area (being those Tax Increment Revenues available after the payment of all indebtedness payable from such Tax Increment Revenues and such lease rentals the Commission may determine from time to time to pay from such Tax Increment Revenues) to the City for its use in order to pay the principal of and interest on the Section 108 Loan for a period up to but not exceeding twenty-five (25) years from the date of the origination of the Section 108 Loan. Such pledge shall terminate at the earliest of the final payment on the Section 108 Loan or the conclusion of the twenty-five (25) year period. 2. There is hereby created and established within the Redevelopment District Bond Fund, a Studebaker/Oliver Project Principal and Interest Account (the "Principal and Interest Account"). 3. Tax Increment Revenues received by the Commission and not otherwise needed as set forth in Section I for the payment of indebtedness or lease rentals shall be deposited into the Principal and Interest Account and appropriated for payment to the City for its use in order to pay the principal of and interest on the Section 108 Loan. Tax Increment Revenues received in any year in excess of the amount necessary to pay the principal of and interest on the Section 108 Loan in said year do not remain pledged, may be transferred to any other account permitted by law, and may be used by the Commission for any purpose set forth in I.C. 36-7-14-39. Notwithstanding the foregoing, the pledge of the Tax Increment Revenues to the Section 108 Loan described herein shall be junior and subordinate to the Prior Pledge as long as the Prior Pledge remains in effect. 4. This Resolution shall be in full force and effect after its adoption by the Commission and shall not be repealed or amended in any manner which would serve to adversely affect the pledge of the Tax Increment Revenues contained herein. BDDB01 4219191 vi