12-13-2021 FINAL Packet - Laserfiche WebLink

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BILL NO. 21-55 RESOLUTION NO. _____________ A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING A LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT AUTHORITY AND THE SOUTH BEND REDEVELOPMENT COMMISSION RELATING TO THE MORRIS PERFORMING ARTS CENTER AND TAKING OTHER ACTIONS RELATED THERETO WHEREAS, the South Bend Redevelopment Commission (the “Commission”), the governing body of the South Bend Department of Redevelopment and the Redevelopment District of the City of South Bend, Indiana (the “District”), exists and operates under the provisions of Indiana Code 36-7-14, as amended from time to time (the “Act”); and WHEREAS, the South Bend Redevelopment Authority (the “Authority”) has been created pursuant to Indiana Code 36-7-14.5 as a separate body corporate and politic, and as an instrumentality of the City of South Bend, Indiana (the “City”) to finance local public improvements for lease to the Commission; and WHEREAS, the City has determined to undertake certain improvements to the City-owned and operated Morris Performing Arts Center (the “Performing Arts Center”) consisting of certain energy savings improvements, renovations of the floor and seating, and certain other improvements at the Performing Arts Center (collectively, the “Project”); and WHEREAS, the Commission has given consideration to (i) financing the cost of all or a portion of the Project; (ii) funding a debt service reserve fund, if necessary in connection with the issuance of the Bonds (defined herein); and (iii) paying costs incurred in connection with the issuance of the Bonds; and WHEREAS, the Commission has determined that it would be beneficial to the District and the City for the Commission to enter into a lease with the Authority pursuant to Section 25.2 of the Act and have the Authority issue its lease rental revenue bonds for a local public improvement pursuant to Indiana Code 36-7-14.5-19; and WHEREAS, the Project is located within the boundaries of the District and will benefit the residents of the City by providing future opportunities for new redevelopment and economic development and job creation; and WHEREAS, at a meeting held on November 22, 2021, following a public hearing held pursuant to Section 25.2 of the Act, the Commission did adopt its Resolution No. 3540 (a) finding (i) that the lease rental payments (the “Lease Rentals”) to be paid by the Commission to the Authority pursuant to a lease between the Commission and the Authority (the “Lease”) are fair and reasonable, (ii) that the terms of the Lease are based upon the value of the leased premises which includes all or a portion of the Morris Performing Arts Center (the “Leased Premises”), and (iii) 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 and (b) approving the Lease in the form presented at the Commission meeting for the purpose of paying the principal of and interest on the South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2022 (Morris Performing Arts Center Project) (the “Bonds”) proposed to be issued by the Authority pursuant to Indiana Code 36-7-14.5 to finance the Project; and WHEREAS, at a meeting held on November 22, 2021, the Authority did adopt Resolution No. 210 whereby the Authority (a) indicated its intent to issue the Bonds in one (1) or more series in an aggregate principal amount not to exceed Seven Million Two Hundred Fifty Thousand Dollars ($7,250,000), to finance all or a portion of (i) the costs of the Project; (ii) a debt service reserve fund, if necessary, in connection with the issuance of the Bonds; and (iii) costs incurred in connection with the issuance of the Bonds; and (b) approved the proposed form of Lease between the Authority and the Commission for the lease of the Leased Premises; and WHEREAS, the Commission reasonably expects to pay the Lease Rentals during the term of the Lease from certain St. Joseph County Hotel-Motel Tax revenues pledged for such purpose