10632-18 Bond Financing for the Community Center Project (St. Joseph County Public Library)

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SUBSTITUTE BILL NO. 60-18 ORDINANCE NO. 10632-18 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,AUTHORIZING THE ISSUANCE AND SALE OF AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $4,800,000 OF CITY OF SOUTH BEND, INDIANA, ECONOMIC DEVELOPMENT TAX INCREMENT REVENUE BONDS FOR THE COMMUNITY EDUCATION CENTER PROJECT, DESIGNATING THE BONDS AS LIMITED OBLIGATIONS OF THE CITY,AND AUTHORIZING AND APPROVING OTHER ACTIONS IN RESPECT THERETO STATEMENT OF PURPOSE AND INTENT The City of South Bend, Indiana (the "City") is a political subdivision of the State of Indiana, and by virtue of Indiana Code 36-7-11.9 and 36-7-12, as amended (the "Act"), is authorized and empowered to adopt this Ordinance and to carry out its provisions. This Common Council has approved a Memorandum of Understanding (the "MOU") among the City, the South Bend Redevelopment Commission(the"Commission"),the St. Joseph County Public Library (the "Public Library"), and the Community Foundation of St. Joseph County, Inc. (the "Foundation") which sets forth the agreement of parties thereto to provide for the construction, equipping, and furnishing of a new, approximately 38,000 square foot building for use as a community and education center to provide new and flexible spaces for community meeting and training, events and conferences and a larger auditorium to meet increasing demand for program space and allow for a more diverse range of programs and community events and any and all projects and improvements related thereto to be located adjacent to the Main Branch of the Public Library located at 304 South Main Street in the City(the"Project"). Pursuant to the MOU, the Public Library has agreed to undertake the procedures to provide for issuance of its bonds in a total aggregate principal of$20,000,000 and the Foundation has committed to fund $10,000,000 of the cost of the Project. The South Bend Economic Development Commission (the "Commission") has rendered its Report concerning the proposed financing of economic development projects and economic development facilities for the Public Library, consisting of the Project. The Commission, after a public hearing held on November 26, 2018, has adopted a Resolution which has been transmitted to the Common Council of the City (the "Common Council") (i) finding that the financing or reimbursement of all or a portion of the costs of the Project will not have an adverse competitive effect on any similar facilities already constructed or operating in or about the City; (ii) further finding that the proposed financing of the cost of the Project will be of benefit to the health and general welfare of the City and its citizens; (iii) further finding that the proposed financing of the cost of the Project complies with the purposes and provisions of the Act; (iv) approving the financing a portion of the cost of the Project, certain of the costs of issuing the Bonds, and funding a debt service reserve for the bonds if determined to be required, including the form and terms of the Financing Documents (defined herein) and the Bonds from the City to the bondholders,more fully described below,and this Ordinance,presented to the Commission; and (v) recommending that this Common Council find that the proposed financing of a portion of the cost of the Project will be of benefit to the health and general welfare of the City and its citizens, and complies with the purposes and provisions of the Act, and that this Common Council adopt an ordinance approving such financings. The Commission has adopted a resolution on November 8,2018(the"Pledge Resolution"), pledging tax increment revenues expected to be received from the River West Economic Development Area Allocation Area on parity with the Prior Bonds (as defined in the Pledge Resolution) to the payment of the principal of and interest on the Bonds. This Common Council believes it is in the best interests of the City and its citizens to provide a program for financing economic development projects and economic development