5073-24 Resolution Approving a Lease Between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission Relating to the Four Winds Field at Coveleski Stadium

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connection with the issuance of the Bonds; and (b) approved the proposed form of Lease between the Authority and the Commission for the lease of the Leased Premises; and WHEREAS,the Commission reasonably expects to pay the Lease Rentals during the term of the Lease from certain Professional Sports and Convention Development Area tax revenues to be received by the City (the "PSCDA Revenues") pursuant to Indiana Code 36-7-31.3 (the "PSCDA Act"); 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 PSCDA Revenues are ever insufficient; and WHEREAS, the Common Council of the.City (the "Common Council") deems it in the best interest of the City and its citizens and of public utility and benefit for the Commission to utilize the PSCDA Revenues to pay the lease rentals due under the Lease which lease rentals would be used to pay the principal of and interest on the Bonds; 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 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 $50,250,000; (b) the Bonds shall have a final maturity date which is not later than twenty (20) years from the date of their issuance; (c) the maximum annual lease rental payment during the term of the Lease shall not exceed $4,476,000; (d) the maximum interest rate on the Bonds shall not exceed six percent (6.00%) per annum; (e) the Bonds will be subject to optional redemption prior to maturity not earlier than seven (7) years after the date of issuance of the Bonds; (f) the maximum term of the Lease shall not exceed twenty(20)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 City 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 City's interest to the Leased Premises to the Authority. The appropriate officers of the Board of Park Commissioners and the Mayor, Clerk, and Controller of the City are each hereby authorized to execute or attest, as the case may be, such instruments or documents and to take such other actions that may be necessary to effectuate the transfer of the Leased Premises to the Authority as authorized herein. SECTION 3. The Common Council hereby finds and determines that it is reasonable and appropriate for the Commission to utilize the PSCDA Revenues pursuant to the PSCDA Act to pay the lease rentals due under the Lease and as such, the Council agrees that it will take, or authorize the taking of, such actions as may be necessary from time to time to provide for the use of the PSCDA Revenues by the Commission to pay the lease rentals due under the Lease. Any PSCDA Revenues remaining following the payment of the lease rentals due under the Lease each year during the term of the Lease may be used for any purpose authorized under the PSCDA Act as may be approved by the Common Council from time to time. 2