9536-04 Authorizing the City of South Bend to issue its "Taxable Economic Development Revenue Bonds, Series 2004

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ORDINANCE NO. ~ ~ 3 ~ -~ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE CITY OF SOUTH BEND, INDIANA, TO ISSUE ITS "TAXABLE ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2004 (ERSHINE VILLAGE PROJECT)" AND APPROVING AND AUTHORIZING OTHER ACTIONS IN RESPECT THERETO STATEMENT OF PURPOSE AND INTENT: Indiana Code Title 36, Article 7, Chapter 11.9 and 12, as amended (the "Act"), declares that the financing of economic development facilities constitutes a public purpose. The Act provides that an issuer may, pursuant to the Act, issue revenue bonds and lend the proceeds thereof to a corporation, partnership, limited liability company or individual for the purpose of financing costs of acquisition or construction of facilities, including real and personal property, for diversification of economic development and promotion of job opportunities in or near such issuer. The Act further provides that such bonds may be secured by a trust indenture between an issuer and a corporate trustee. KSK-Scottsdale Mall, L.P. (the "Company") has proposed undertaking the development and construction of a 400,000-500,000 square foot retail power center having a village concept (the "Project") at or near the southeast corner of the intersection of Ireland Road and Miami Street in the City (the "Site"). In conjunction with the Project, the Company has further proposed that the City of South Bend, Indiana (the "City") issue and sell its taxable economic development revenue bonds under the Act in two series with one (1) series of bonds in an aggregate principal amount not to exceed Six Million and 00/100 Dollars ($6,000,000.00) (the "Series A Bonds") and with another series of bonds in an aggregate principal amount not to exceed Two Million and 00/100 Dollars ($2,000,000.00) (the "Series B Bonds" and with the Series A Bonds, the "Bonds") and that the City lend the proceeds of the Bonds to the Company (the "Loan") under a Loan Agreement by and between the City and the Company (the "Loan Agreement") in a form substantially similar to that presented to the Common Council of the City (the "Common Council") whereby the proceeds of the Bonds will be utilized for any or all of the following: (i) the demolition of the former Scottsdale Mall site, (ii) the construction of a new discount store, (iii) the construction of additional retail establishments, and (iv) the construction, acquisition and renovation of such other improvements, including but not limited to utility relocation and site preparation, that will facilitate the completion of the Project on the Site (collectively, the "Improvements"). The principal of, premium, if any, and interest on the Bonds shall be payable solely from tax increment revenues resulting from the increase in the assessed value of real property improvements resulting from the Project in the Area (as defined herein) (the "TIF Revenues") pledged by the Redevelopment Commission of the City (the "Redevelopment Commission"), and to the extent that such revenues are not sufficient or otherwise available, the Bonds will be payable SBIMANI 192617v2