1990-03-07 Minutes - Laserfiche WebLink

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The Commission intends to reduce tax levies to the extent funds are available from surplus tax increment revenues received from the South Bend Central Development Area. Sufficient funds are projected to be available to make -all lease rental payments as demonstrated in the Cash Flow in Appendix VI of this Official Statement. However, the Commission's taxing power will be required to make any lease rental payments in the event the revenues are insufficient to meet required lease payments. Prior to commencement of lease payments, interest due on the Bonds will be payable from capitalized interest to the extent available. Under the Lease as will be amended, the lease rental will commence upon the completion of the Improvements or January 31, 1993, whichever is later. After completion, if the Improvements should ever be substantially or totally destroyed, the lease rental shall be abated during the period in which the Improvements are unfit for their intended use. In such a case, rental value insurance will be available to make lease rental payments due during this time for a period up to two years. If restoration of the Improvements is not completed (as allowed under certain conditions specified in Section 5 of the Lease), the Authority will use insurance proceeds to redeem all of the outstanding Bonds. With regard to the commencement and abatement of lease rental payments, as described in the preceding paragraphs, refer also to the section entitled "Risk Factors to be Considered by Investors" contained in this Official Statement and the Lease in Appendix III of this Official Statement. Authorization • The Authority, a body corporate and politic, duly organized and existing under the provisions of I.C. 36-7-14.5, was created for the purpose of financing local public improvements for lease to the Commission. The Authority is comprised of three members appointed by the Mayor. Current members of the Authority are listed below: Joseph W. Wroblewski, President Donald K. Fewell, Vice President George W. McCullough, Jr., Secretary-Treasurer On February 16, 1990, the Authority adopted a "Resolution of the South Bend Redevelopment Authority Authorizing the Issuance of the South Bend Redevelopment Authority Lease Rental Revenue Bonds (South Bend Central Development Area Public Improvement Project)" (the "Bond Resolution") which authorized the issuance of the Bonds to finance the Improvements and related issuance costs. The Bond Resolution is contained in Appendix II of this Official Statement. The Lease dated as of November 1, 1989 authorizes the lease of the Improvements to the Commission and obligates the Commission to make lease rental payments to the Authority (except as provided therein) as well as pay. all taxes, insurance and maintenance costs related to the Improvements. The Trust Agreement, dated as of November 1, 1989 between the Authority and the Trustee, provides the security to the bondholders. In the Trust Agreement, the Authority pledges the Pledged. Funds to the repayment of the. Bonds and covenants therein to maintain insurance and to pay taxes and other charges related to the Improvements. Summaries of the Lease and the Trust Agreement are provided in the following two sections of this Official Statement. The Lease (not including certain Exhibits) and excerpts from the Trust Agreement are provided in Appendices III and IV of this Official Statement. • -3-