12-13-2021 FINAL Packet - Laserfiche WebLink

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2 by the St. Joseph County Hotel-Motel Tax Board of Managers pursuant to Indiana Code 6-9-1-6.4 (the “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 Hotel-Motel Tax Revenues are ever insufficient; and WHEREAS, the annual rentals payable by the Commission under the Lease will be pledged by the Authority to pay the principal of and interest on the Bonds; and WHEREAS, given the use of the lease financing provisions to reduce the cost of borrowing and certain additional requirements set forth in the Act and Indiana Code 36-7-14.5 with respect to the approval by the Common Council of a financing for redevelopment or economic development purposes, the Common Council of the City (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 Commission must be approved by the fiscal body of the City, (ii) approve the issuance of the Bonds by the Authority as required by Indiana Code 36-7-14.5-19, and (iii) approve and authorize the transfer of the interests in the Leased Premises to the Authority to permit the Authority to lease the Leased Premises to the Commission pursuant to the Lease. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION 1.The Common Council hereby approves of the issuance of the Bonds by the Authority pursuant to Indiana Code 36-7-14.5-19 and the execution and delivery of the Lease, as approved by the Commission, pursuant to Section 25.2 of the Act, in order to provide for the financing of the Project, all upon the following conditions: (a) the maximum aggregate principal amount of the Bonds shall not exceed $7,250,000; (b) the Bonds shall have a final maturity date which is not later than twenty-five (25) years from the date of their issuance; (c) the maximum annual lease rental payment during the term of the Lease shall not exceed $420,000; (d) the maximum interest rate on the Bonds shall not exceed six and one-half percent (6.50%) per annum; (e) the Bonds will be subject to optional redemption prior to maturity not earlier than five (5) years after the date of issuance of the Bonds; (f) the maximum term of the Lease shall not exceed twenty- five (25) years; and (g) no interest on the Bonds shall be capitalized or paid from the proceeds of the Bonds. SECTION 2.The Common Council hereby finds and determines that the transfer of the Leased Premises from the Commission to the Authority for no consideration, in connection with the financing of the Project by the Authority and lease of the Leased Premises to the Commission pursuant to the Act, is in the best interests of the City and its citizens. The Common Council approves of the transfer of all of the Commission’s interest to the Leased Premises to the Authority. The appropriate officers of the Commission and the City are hereby authorized to execute and attest, respectively, such instruments or documents and to take such other action that may be necessary to effectuate the transfer of the Leased Premises to the Authority as authorized herein. SECTION 3.This Resolution shall be in full force and effect from and after its adoption by the Common Council. _________________________________ Karen L. White, President South Bend Common Council