$11,000,000 Multi Family Housing Revenue Bonds (The Raintree Point Apartments Project)

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The Sponsor has estimated Project costs to be not less than Eleven Million Dollars ($11, 000, 000) and has tentatively arranged the financial terms and sale of the Bonds in that amount to the Purchaser of the Bonds (the "Purchaser") . The City, the Sponsor and the Purchaser have completed negotiation and drafting of the Indenture of Trust (the "Indenture") , Loan Agreement, Regulatory Agreement, Remarketing Agreement and Bond Purchase Agreement and have previously submitted these documents to the Commission for review and action. The Commission has aproved the form of and has transmitted these documents to the Council . It is now appropriate for the City to act on the proposed documents and the proposed issuance and sale of the Bonds . NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: SECTION 1 . Determination of Necessity, The issuance of Bonds to assist in financing of the Project complies with the purposes and provisions of the Act and will be a benefit to the health and welfare of the citizens of the City. The Project constitutes an "economic development facility" under the Act and will consist of the acquisition and construction of a 204 -unit multi-family residential housing complex located on 7 . 5 acres , more of less , Parcel "A" in the East Bank Development Area. The issuance of the Bonds is necessary to induce the Sponsor to locate the Project in the City. SECTION 2 . Issuance of Bonds , Note and Obligation. The Bonds shall be issued by the City in the aggregate principal amount of Eleven Million Dollars ($11, 000, 000) . The Bonds shall be issued in fully registered form in denominations of $5 , 000 and integral multiples thereof, The Bonds shall bear interest at a rate to be determined upon the sale thereof, but in no event shall the interest rate on the Bonds prior to the Conversion Date (as defined in the Indenture) exceed ten percent (10%) per annum. From and after the Conversion Date, the Bonds shall bear interest at such rates as shall be determined in accordance with the applicable provisions of the Indenture, which provisions are hereby specifically approved by the City. The Bonds shall mature as provided in the Indenture. The Bonds shall be subject to redemption or prepayment prior to maturity as provided in the Indenture, The Bonds shall be a limited obligation of the City in accordance with the Indenture. SECTION 3 . Approval of Indenture, Loan Agreement, Regulatory Agreement , Remarketing Agreement and Bond Purchase Agreement . The form of Indenture on file with the Clerk of th i1 he "Clerk") is hereby approved. TheNational Bank of Commerce/ is er'eby appointed to act as Trustee under the Indenture and shall signify its acceptance of such duties by executing and delivering the Indenture. The forms of Loan Agreement, Regulatory Agreement, Remarketing Agreement and Bond Purchase Agreement on file with the Clerk are hereby approved. Two copies of each document are on file in the office of the Clerk for public inspection. SECTION 4. Execution and Delivery of Documents and Changes Therein. The Mayor of the City (the "Mayor") and. the Clerk are hereby authorized to execute and deliver the Indenture, Regulatory Agreement, Loan Agreement, Remarketing Agreement and Bond Purchase Agreement, all in substantially the forms approved, with such changes and insertions in such documents as may be necessary or desirable, permitted by the Act and otherwise by law, and not materially adverse to the City. The use by the Purchaser of the preliminary and final official statements in connection with tilt.