9524-04 Authorizing to Issue its "Taxable Economic Development Revenue Bonds, Series 2004 (Erskine Common Project)"

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ORDINANCE NO. ~ ~ ~~ ~ D I 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 COMMONS 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. Anchor South Bend, LLC, (the "Company") has proposed undertaking the development and construction of a retail and commercial center (the "Project") at or near the southwest corner of the intersection of Ireland and Michigan Streets 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 one (1) or more series in an aggregate principal amount not to exceed Three Million Eight Hundred Thousand and 00/100 Dollars ($3,800,000.00) (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 relocation of power lines, petroleum pipelines and other utility structures, (ii) the demolition of existing structures, (iii) the filling and compaction of fill on the site, and (iv) such other improvements that will facilitate the completion of the Project at the Site (collectively, the "lmprovements"). 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 to the extent necessary from payments made by the Company. The Project will be located in Allocation Area No. 2 (the "Area"), an allocation area designated for purpose of tax increment financing within the South Side Development Area, an SB IMANI 188921 v3