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2023 (the"Bonds") proposed to be issued by the Authority in one(1) or more series pursuant <br />to Indiana Code 36-7-14.5 to finance the Projects; and <br />WHEREAS,at a meeting held on December 19,2022,the Authority did adopt Resolution <br />No. 213 whereby the Authority (a) indicated its intent to issue the Bonds in one (1) or more <br />series to finance all or a portion of(i)the costs of the Projects; (ii) a debt service reserve fund, <br />if necessary,in connection with the issuance of the Bonds;and(iii)costs incurred in connection <br />with the issuance of the Bonds; and (b) approved the proposed form of Lease between the <br />Authority and the Commission for the lease of the Leased Premises; and <br />WHEREAS, the Commission reasonably expects to pay the Lease Rentals during the <br />term of the Lease from certain tax increment revenues from the River West Development Area <br />and the River East Development Area;however,to assist with the marketing of the Bonds and <br />securing competitive interest rates, the payment of the Lease Rentals also will be secured by <br />the levy of a special tax pursuant to Section 27 of the Act in the event such tax increment <br />revenues are ever insufficient; and <br />WHEREAS, the annual rentals payable by the Commission under the Lease will be <br />pledged by the Authority to pay the principal of and interest on the Bonds; and <br />WHEREAS, given the use of the lease financing provisions to reduce the cost of <br />borrowing and certain additional requirements set forth in the Act and Indiana Code 36-7-14.5 <br />with respect to the approval by the Common Council of a financing for redevelopment or <br />economic development purposes, the Common Council of the City (the "Common Council") <br />desires to(i)approve the Lease as required by Section 25.2 of the Act,which provides that any <br />lease approved by a resolution of the Commission must be approved by the fiscal body of the <br />City, (ii) approve the issuance of the Bonds by the Authority as required by Indiana Code 36- <br />7-14.5-19, and (iii) approve and authorize the transfer of the interests in the Leased Premises <br />to the Authority to permit the Authority to lease the Leased Premises to the Commission <br />pursuant to the Lease. <br />NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of <br />South Bend, Indiana, as follows: <br />SECTION 1. The Common Council hereby approves of the issuance of the Bonds by <br />the Authority pursuant to Indiana Code 36-7-14.5-19 and the execution and delivery of the <br />Lease, as approved by the Commission,pursuant to Section 25.2 of the Act,in order to provide <br />for the financing of the Projects,all upon the following conditions: (a)the maximum aggregate <br />principal amount of the Bonds shall not exceed $69,000,000; (b) the Bonds shall have a final <br />maturity date which is not later than twenty (20) years from the date of their issuance; (c) the <br />maximum annual lease rental payment during the term of the Lease shall not exceed <br />10,500,000; (d) the maximum interest rate on any tax-exempt series of the Bonds shall not <br />exceed seven and one-half percent(7.50%)per annum and on any taxable series of the Bonds <br />the maximum interest rate shall not exceed nine percent(9.00%)per annum; (e)the Bonds will <br />be subject to optional redemption prior to maturity not earlier than five(5) years after the date <br />of issuance of the Bonds; (f) the maximum term of the Lease shall not exceed twenty (20) <br />years; and(g)interest on the Bonds may be capitalized or paid from the proceeds of the Bonds <br />3