No. 1830 amending Res. No. 1823 entitled "Resolution of the SBRc of the COSB, pledging TIF revenues for pmt, if necessary, of the principal of/interest on a loan from the environmental remediation revolving loan fund administered by IDFA

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LM WHEREAS, in addition to the promise of Bosch to repay the Loan, IDFA requires further assurance of the City to repay the Loan from Rinds available to the City in the unlikely event that Bosch does not make repayments as provided in the Agreement; and WHEREAS, the Improvements constitute "local public improvements" as such term is defined in the Act; and WHEREAS, the Commission has previously adopted Resolution No. 1823 at its meeting on January 5, 2000 (the "Pledge Resolution "), whereby the Commission pledged Available Tax Increment Revenues (as defined therein) to the repayment of the Loan as evidenced by the Bonds (the "Pledge "); and WHEREAS, in connection with the Pledge, IDFA has indicated it �� ill require a parity test with respect to any possible future issuance of Redevelopment District revenue bonds payable in whole or in part from tax increment revenues (the "Tax Increment ") generated in the Allocation Area; AVWA NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Commission of the City of South Bend, Indiana, as follows: 1. The Commission hereby amends the Pledge Resolution to include the second paragraph hereof for purposes of creating a parity test with respect to the Tax Increment and its use for the payment of principal of and interest on any possible future revenue bonds. 2. (a) The Redevelopment District reserves the right to authorize and issue additional bonds ( "Parity Bonds "), payable out of the Tax Increment, ranking on a parity with the Pledge and payable ratably from the Tax Increment for the purpose of raising money for future property acquisition, redevelopment and economic development in or serving the Allocation Area. The authorization and issuance of Parity Bonds shall be subject to the following conditions precedent: (i) All interest and principal payments with respect to all obligations payable from the Tax Increment shall be current to date with no payment in arrears. h, (ii) The Commission shall have received a certificate prepared by an independent certified public accountant or an independent financial consultant ( "Certifier ") certifying that the Tax Increment estimated to be received in each succeeding year, adjusted as provided below, is estimated to be equal to at least 150% of the principal and interest requirements of all obligations of the Commission pad able from Tax Increment for each respective year during the term of the Pledge and the Parity Bonds. In estimating the Tax Increment to be received in any future year, the Certifier shall base his calculation on assessed ODMA PCDOCS.SBDOCS 1 83274 1 -2-