10613-18 Authorize Issuance of Economic Development Bonds Series 2018 for Potawatomi Zoo Project

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amount not to exceed $4,205,000 (the "Bonds") for the purpose of making make funds available for the Project, funding a debt service reserve fund, and the cost of selling and issuing the Bonds as permitted by law. The original principal amount of the Bonds,together with the outstanding principal amount of previously issued bonds which constitute a debt of the City,on the date of issuance of the Bonds will be no more two percent(2%) of one-third(1/3) of the total net assessed valuation of the City. The St. Joseph County, Indiana, Income Tax Council previously imposed a county economic development income tax(the"CEDIT Tax") on the adjusted gross income of St. Joseph County, Indiana (the "County"), taxpayers pursuant to Indiana Code 6-3.5-7, which law has been repealed and re-codified at Indiana Code 6-3.6 for the purpose of consolidating all local income taxes into a single article and reclassified the former CEDIT Tax as additional revenues for economic development purposes derived from the expenditure tax rate under Indiana Code 6-3.6- 6-9 (referred to herein as "Economic Development Income Tax" and the revenues derived therefrom as "Economic Development Income Tax Revenues"). The County previously issued $9,155,000 of its Economic Development Income Tax Revenue Bonds of 2014 on December 30,2014 (the"County Bonds")for the purpose of financing the construction of a new Public Safety Answering Point facility in the County. The Mayor of the City(the"Mayor")irrevocably designated and transferred to the County pursuant to Indiana Code 6-3.5-7-15 a portion of the City's distributive share of Economic Development Income Tax Revenues (in an amount equal to approximately 29.03% of the annual debt service on the County Bonds) (the "Designated Amount") for the purpose of permitting the County to use such funds to pay debt service on the County Bonds in addition to the County's distributive share as well as funds received by the County as a result of a similar pledge made by the Mayor of the City of Mishawaka, Indiana. As used hereinafter, the term "Economic Development Income Tax Revenues" does not include the Designated Amount while the County Bonds remain outstanding. This Common Council has determined that it will be of public utility and benefit to pledge the City's distributions of Economic Development Income Tax Revenues to secure the payment of the Bonds, and the Common Council now desires to pledge the County's distributions of Economic Development Income Tax Revenues to pay the debt service due on the Bonds as set forth herein on a parity with the City's County Economic Development Income Tax Bonds of 2015 issued by the City on August 4, 2015, and currently outstanding in an aggregate principal amount of$4,980,000 (the "Prior Bonds") which Prior Bonds were issued by the City to fund the cost of various capital improvements and expansions to the City's park facilities, fund a debt service reserve with respect to the Prior Bonds, and to pay costs of issuance relating to the Prior Bonds. There have been submitted to this Common Council proposed forms of the Financing Agreement, by and between the Corporation and the City (the "Financing Agreement"), and the Trust Indenture, by and between the City and a trustee to be selected (the"Trust Indenture"). NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,INDIANA, AS FOLLOWS: SECTION I. Recitals. The recitals contained in this Ordinance are true and correct and are incorporated in this Ordinance by this reference. SECTION H. Findings. This Common Council finds that the facilities that constitute the Project to be financed as described in said Financing Documents are "economic development projects" and"economic development facilities" within the meaning of the Act and that such projects and facilities will not have an adverse competitive effect on any similar facilities already constructed or operating in or about the City. This Common Council further finds that the proposed financing of the Project will be of benefit to the health and general welfare of the City and its citizens. This Common Council further finds that the proposed financing of the Project complies with the purposes and provisions of the Act. SECTION III. Authorization of Bonds. The Common Council hereby authorizes,as part of a program for financing the aforementioned economic development facilities, the issuance of an aggregate principal amount not to exceed $4,205,000 of the Bonds by the City, in one or more series, for the purpose of procuring funds to finance (a)the cost of the Project, and expenses related thereto, (b)the funding of a debt service reserve for the Bonds in an amount equal to the least of(i) the maximum annual debt service on the Bonds, (ii) one hundred twenty-five 2