No. 1988 pledging certain tax increment revenues to the payment of the COSB economic development revenue bonds of 2003, together with interest thereon (Kite Capital, LLC project)

Home Browse Search

'r `% RESOLUTION NO. 1988 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION PLEDGING CERTAIN TAX INCREMENT REVENUES TO THE PAYMENT OF THE CITY OF SOUTH BEND, INDIANA, ECONOMIC DEVELOPMENT REVENUE BONDS OF 2003, TOGETHER WITH INTEREST THEREON (THE KITE CAPITAL, LLC PROJECT) WHEREAS, the South Bend Redevelopment Commission (the "Commission ") has previously entered into a Development Agreement (the "Agreement "), with the City of South Bend, Indiana (the "City ") and Kite Capital, LLC (the "Company "), pursuant to which the Company has agreed to construct a 450,000 - 500,000 square foot retail power center having a village concept to be known as 'Erskine Village" (the "Project ") on the site of the current Scottsdale Mall in the City (the "Site ") and pursuant to which the City and the Commission have agreed to provide certain economic incentives to facilitate the Project; and WHEREAS, the Commission has previously designated and declared an area in the City known as the South Side Development Area (the "Area ") to be a redevelopment area, which Area includes the Site, and has designated the Area as an allocation area and established an allocation fund (the "Allocation Fund ") for purposes of tax increment financing; and ILWHEREAS, the City intends to issue bonds pursuant to I.C. 36 -7 -11.9 and 12 to be known as the "City of South Bend, Indiana, Economic Development Revenue Bonds of 2003 (Kite Capital, LLC Project)" (the 'Bonds "), the proceeds of which are to be used to finance a portion of the costs of the Project consisting of the demolition of the former Montgomery Ward store and automotive service center and the construction of a discount department store consisting of approximately 123,680 square feet on a portion of the Site and the costs of issuance; and WHEREAS, the Commission anticipates that the City will loan the proceeds of the Bonds to the Company pursuant to a loan agreement to be entered into by and between the City and the Company; and WHEREAS, the Commission anticipates that sufficient funds will be available to the Commission to pay the principal of and interest on the Bonds with such funds being derived from the tax increment revenues allocated to the Commission and resulting solely from the increase in the assessed value of real property which comprises the Site and improvements thereon (the "Project Tax Increment Revenues "); and WHEREAS, the Commission desires to pledge such Project Tax Increment Revenues to pay the principal of and interest on the Bonds; and IL