1998-10-19 Resolution 130 - Laserfiche WebLink

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The Lease Rental to be paid by the Commission during the term of the Lease (as long as the Project is available for use and occupancy) will be in amounts sufficient to pay the principal of and interest on the Refunding Bonds. The Lease Rental is payable from unlimited ad valorem taxes to be levied against all taxable property within the South Bend Redevelopment District (the "District"). (See "SUMMARY OF LEASE" in APPENDIX C herein). On December 22, 1997, the Indiana Tax Court ruled that the true tax value method of valuing property for purposes of levying property taxes was unconstitutional and ordered the State Board of Tax Commissioners and the Indiana General Assembly to develop a valuation system based on an objective measure of property wealth. The Indiana Supreme Court has accepted the State Board of Tax Commissioners' petition for review of the Tax Court decision and has set the matter for oral argument on September 8,1998. The Tax Court has ordered the State Board of Tax Commissioners to consider real world evidence of property values presented to the State Board of Tax Commissioners by persons filing appeals on or after May 11, 1999. The case affects only the valuation method and not the ability of the Commission to levy an unlimited property tax to pay Lease Rentals. Neither the Building Corporation, the Commission nor the City can predict the impact on property tax collections (including Tax Increment), or the timing of, future judicial actions in this case, or of legislation, regulations or rulings enacted to implement any subsequent ruling. Moreover, neither the Authority, the Commission nor the City can predict the outcome, or timing, of any subsequent actions by the Tax Court or the Indiana Supreme Court or the General Assembly. The Commission is obligated to make lease payments semi-annually as required by Indiana '~ Code 36-7-14-27, to make an annual appropriation and tax levy at a rate to provide sufficient money to pay such lease payments from unlimited ad valorem taxes on all taxable property in the District. The lease rental payments to be paid by the Commission during the term of the Lease will be in amounts sufficient to pay the principal of and interest on the Refunding Bonds. While the above description is based upon the Indiana Code, the General Assembly may make amendments to such statutes and, therefore, there is no assurance of future events. The Commission intends to reduce tax levies to the extent that Project-related Revenue is available in the Principal and Interest Account. Project-related Revenue that will be available to the Commission includes revenues generated from the Blackthorn Golf Course, Tax Increment collected in the Airport Economic Development Area, and funds from the sale of Redevelopment Authority-owned land (together referred to as "Project-related Revenue' in this Official Statement). THE AUTHORITY The Authority was organized under the laws of the State of Indiana as a public body corporate and politic. The Authority was organized for the sole purpose of financing local public improvements for lease to the Commission. The officers of the Authority are Carolyn V. Pfotenhauer, Matt Kahn and Jose A. Alvarez. None of the officers, directors or members of the Authority has or will receive any compensation from the Authority or the Commission and none has any pecuniary interest in the Refunding Bonds. -14-