11-22-2021 FINAL Agenda Packet - Laserfiche WebLink

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2 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 of the cost of the Project and certain of the costs of issuing the Bonds and funding a debt service reserve for the Bonds (if necessary), including the forms and terms of a Financing Agreement (the “Financing Agreement”), by and among the City, the Corporation and the City of South Bend Building Corporation (the “Building Corporation”), a Trust Indenture (the “Trust Indenture”) between the City and a bank to be selected to serve as trustee for the Bonds (the “Trustee”), the Bonds from the City to the bondholders, more fully described below, and this Ordinance (the Financing Agreement, the Trust Indenture, the Bonds and this Ordinance, collectively, the “Financing Documents”), presented to the Economic Development Commission; and (v) recommending that this Common Council find 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, and complies with the purposes and provisions of the Act, and that this Common Council adopt an ordinance approving such financings. 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 facilities for developers or users thereof through the issuance of tax-exempt bonds. The City, as requested by the Corporation, has determined to issue, sell and deliver economic development lease rental revenue bonds in one or more series to be designated the “City of South Bend, Indiana, Economic Development Lease Rental Revenue Bonds, Series 2022 (Potawatomi Zoo Project)” in an aggregate principal amount not to exceed $6,500,000 (the “Bonds”) for the purpose of making make funds available for the Project, funding a debt service reserve fund, and paying the cost of selling and issuing the Bonds as permitted by law. The Building Corporation has been organized as an Indiana nonprofit corporation operating pursuant to Indiana Code 23-17 in order to finance buildings and other capital improvements in the City. The South Bend Redevelopment Commission (the “Redevelopment Commission”), the governing body of the South Bend Redevelopment District (the “District”), exists and operates under the provisions of Indiana Code 36-7-14. The Redevelopment Commission and the Building Corporation have each adopted resolutions approving a proposed lease in the form presented at this meeting (the “Lease”), between the Building Corporation, as lessor, and the Redevelopment Commission, as lessee, providing for the lease of certain real property in the City pursuant to Indiana Code 36-7-14-25.2 consisting of (i) a portion of Greenlawn Avenue in the City, from its intersection with McKinley Avenue to its intersection with Wall Street, (ii) a portion of Wall Street in the City from its intersection with Twyckenham Drive to its intersection with Greenlawn Avenue, and (iii) a portion of Wall Street in the City from its intersection with Greenlawn Avenue to its intersection with Ironwood Drive (collectively, the “Leased Premises”) for the purpose of providing a source of revenue to pay the principal of and interest on the Bonds when due. The annual rentals payable by the Redevelopment Commission under the Lease (the “Lease Rentals”) will be pledged by the Building Corporation pursuant to the Financing Agreement to the payment of the principal of and interest on the Bonds. The St. Joseph County Hotel-Motel Tax Board of Managers adopted a resolution on November 4, 2021, pledging certain St. Joseph Hotel-Motel Tax Revenues collected and allocated for such purpose pursuant to Indiana Code 6-9-1-6.3 (the “Zoo Hotel-Motel Tax Revenues”) to the payment of the Lease Rentals in order to provide a means to finance the Project. The