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facilities for developers or users thereof through the issuance of economic development revenue
<br /> bonds. The City, as requested by the Library, has determined to issue, sell and deliver economic
<br /> development tax increment revenue bonds in one or more series to be designated the"City of South
<br /> Bend, Indiana, Economic Development Tax Increment Revenue Bonds, Series 20_(Community
<br /> Education Center Project)" (with the blank to be filled in with the year in which such bonds are
<br /> issued) in an aggregate principal amount not to exceed $4,800,000 (the"Bonds") for the purpose
<br /> of making make funds available for the Project, funding a debt service reserve fund, if required,
<br /> and the cost of selling and issuing the Bonds as permitted by law.
<br /> There have been submitted to this Common Council proposed forms of the Financing
<br /> Agreement, by and between the Library and the City(the "Financing Agreement"), and the Trust
<br /> Indenture, by and between the City and a trustee to be selected (the"Trust Indenture").
<br /> NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL
<br /> OF THE CITY OF SOUTH BEND, INDIANA,AS FOLLOWS:
<br /> SECTION I. Recitals. The recitals contained in this Ordinance are true
<br /> and correct and are incorporated in this Ordinance by this reference.
<br /> SECTION II. Findings. This Common Council finds that the facilities that
<br /> constitute the Project to be financed as described in said Financing Documents are "economic
<br /> development projects" and "economic development facilities" within the meaning of the Act and
<br /> that such projects and facilities will not have an adverse competitive effect on any similar facilities
<br /> already constructed or operating in or about the City. This Common Council further finds that the
<br /> proposed financing of the Project will be of benefit to the health and general welfare of the City
<br /> and its citizens. This Common Council further finds that the proposed financing of the Project
<br /> complies with the purposes and provisions of the Act.
<br /> SECTION III. Authorization of Bonds. The Common Council hereby
<br /> authorizes,as part of a program for financing the aforementioned economic development facilities,
<br /> the issuance of an aggregate principal amount not to exceed Four Million Eight hundred Dollars
<br /> ($4,800,000) of the Bonds by the City, in one or more series, for the purpose of procuring funds
<br /> to finance(a)the cost of the Project,and expenses related thereto, (b)if determined to be necessary
<br /> based upon advice received from the City's municipal advisor,the funding of a debt service reserve
<br /> for the Bonds in an amount equal to (i) if the Bonds are issued on a tax-exempt basis, the least of
<br /> (A) the maximum annual debt service on the Bonds, (B) one hundred twenty-five percent(125%)
<br /> of average annual debt service on the Bonds,or(C)ten percent(10%)of the proceeds of the Bonds
<br /> or (ii) if the Bonds are issued on a taxable basis, the maximum annual debt service on the Bonds
<br /> (in each case, the "Reserve Requirement") (if the Reserve Requirement is not otherwise satisfied
<br /> pursuant to Section XI hereof), and (c) the cost of certain incidental expenses on account of the
<br /> issuance of the Bonds as may be permitted by law and acquiring any credit enhancement with
<br /> respect thereto (if necessary), which Bonds will be payable as to principal, premium, if any, and
<br /> interest from TIF Revenues on parity with the Prior Bonds, or as otherwise provided in the
<br /> Indenture.
<br /> The Bonds shall be issued not later than March 31, 2022, in one(1) or more series as fully
<br /> registered bonds in denominations of$5,000, or any integral multiple thereof not exceeding the
<br /> aggregate principal amount of the Bonds maturing in any one (1) year (or in denominations of
<br /> $100,000 and $1,000 in excess thereof) (each an "Authorized Denomination") as may be
<br /> determined by the Controller of the City(the"Controller"), shall be dated the date of their delivery
<br /> as set forth in the Indenture, and shall be fully registered without coupons and numbered
<br /> consecutively from R-1 upward. The Bonds shall be payable in the medium and at the place or
<br /> places as set forth in the Indenture and shall bear interest at a rate not exceeding seven and one-
<br /> half percent(7.50%)per annum (determined through negotiation as set forth herein). Principal of
<br /> and interest on the Bonds shall be payable semiannually on February 1 and August 1,commencing
<br /> not earlier than the first February 1, or August 1 following the issuance of the Bonds and shall
<br /> have a final principal payment due on not later than a February 1 or August 1 which is not more
<br /> than twenty(20) years from the date of issuance of the Bonds.
<br /> Interest on the Bonds shall be calculated according to a three hundred sixty (360)-day
<br /> calendar year containing twelve(12)thirty(30)-day months.
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