11-22-2021 FINAL Agenda Packet - Laserfiche WebLink

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3 Redevelopment Commission, following a public hearing held pursuant to Indiana Code 36-7-14- 25.2, adopted a resolution finding that the Lease Rentals to be paid by the Redevelopment Commission to the Building Corporation pursuant to the Lease are fair and reasonable, and that the terms of the Lease are based upon the value of the Leased Premises and the use of the Leased Premises throughout the term of the Lease will serve the public purpose of the City and is in the best interests of its residents. The Redevelopment Commission reasonably expects to pay the Lease Rentals during the term of the Lease from the Zoo Hotel-Motel Tax Revenues; however, to assist with the marketing of the Bonds and securing competitive interest rates, the payment of the Lease Rentals also will be secured by the levy of a special benefits tax pursuant to Section 27 of the Act in the event the Zoo Hotel-Motel Tax Revenues are at any point insufficient to pay the Lease Rentals. Given the use of the lease financing provisions to reduce the cost of borrowing pursuant to Indiana Code 36-7-14-25.2, the Common Council desires to (i) approve the Lease as required by Section 25.2 of the Act, which provides that any lease approved by a resolution of the Redevelopment Commission must be approved by the fiscal body of the City; (ii) authorize the issuance of the Bonds pursuant to the Act; and (iii) approve and authorize the transfer of the interests in the Leased Premises to the Building Corporation for no consideration pursuant to Indiana Code 36-1-11-8 to permit the Building Corporation to lease the Leased Premises to the Redevelopment Commission pursuant to the Lease. There have been submitted to this Common Council the proposed forms of the Financing Documents and the Lease. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: SECTION I.Recitals. The recitals contained in this Ordinance are true and correct and are incorporated in this Ordinance by this reference. SECTION II.Findings. This Common Council finds that the facilities that constitute the Project to be financed as described in said Financing Documents are “economic development projects” and “economic development facilities” within the meaning of the Act and that such projects and facilities will not have an adverse competitive effect on any similar facilities already constructed or operating in or about the City. This Common Council further finds that the proposed financing of the Project will be of benefit to the health and general welfare of the City and its citizens. This Common Council further finds that the proposed financing of the Project complies with the purposes and provisions of the Act. SECTION III.Approval of Lease. The Common Council hereby approves the execution and delivery of the Lease, as approved by the Redevelopment Commission, pursuant to Indiana Code 36-7-14-25.2, including, if necessary, the levy by the Redevelopment Commission of a special benefits tax pursuant to Indiana Code 36-7-14-27 during the term of the Lease to provide necessary funds from which to pay the Lease Rentals under the Lease and the pledge of the Lease Rentals thereunder to the payment of the principal of and interest on the Bonds pursuant to the terms of the Financing Agreement, all subject to the following conditions: (a) the maximum annual Lease Rental payment during the term of the Lease shall not exceed $420,000; (b) the maximum interest rate on the Bonds shall not exceed six and one-half percent (6.5%) per annum; (c) the Bonds may be subject to redemption prior to maturity on any date not earlier than five (5) years following the date of issuance of the Bonds, with such specific dates and redemption terms