|
On the date specified in the notice of the Public Hearing, the Commission conducted the
<br />Public Hearing, and adopted its evaluative report and resolution, which have been transmitted to
<br />the Common Council, finding that the financing of a portion of the Project complies with the
<br />purposes and provisions of the Act and that such financing will be of benefit to the health and
<br />welfare of the City and its citizens.
<br />The Commission has performed all actions required of it by the Act preliminary to the
<br />adoption of this Ordinance and has approved and forwarded to the Common Council the forms of:
<br />(1) the Loan Agreement; (2) the Funding and Reimbursement Agreement (the "Funding
<br />Agreement") between the City and the South Bend Redevelopment Commission (the
<br />"Redevelopment Commission"); and (3) this Ordinance (the Loan Agreement, the Funding
<br />Agreement, and this Ordinance, collectively, the "Financing Agreements").
<br />Pursuant to Indiana Code 36-7-14-39(b)(4), the Redevelopment Commission may use
<br />certain incremental property taxes, among other purposes, to reimburse the City for expenditures
<br />(including loans) made for local public improvements (which include buildings, parking facilities,
<br />and all expenses reasonably incurred in connection with the acquisition and redevelopment of
<br />property) that are physically located in or physically connected to the Allocation Area.
<br />The Redevelopment Commission has adopted its Resolution No. 3603 on June 27, 2024,
<br />determining, subject to annual appropriation by the Redevelopment Commission, to make
<br />available tax increment revenues on deposit in the allocation fund for the Allocation Area (the
<br />"River West TIF Revenues") to simultaneously reimburse the City for its costs incurred to fund
<br />each draw on the Loan to the Developer with respect to the Project.
<br />NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
<br />CITY OF SOUTH BEND, INDIANA, AS FOLLOWS:
<br />SECTION I. Findings; Public Benefits. The Common Council hereby finds and
<br />determines that the Project involves the acquisition and construction of an "economic development
<br />facility" as that phrase is used in the Act; that the Project will increase employment opportunities
<br />and increase diversification of economic development in the City, will improve and promote the
<br />economic stability, development and welfare in the City, will encourage and promote the
<br />expansion of industry, trade and commerce in the City and the location of other new industries in
<br />the City; that the public benefits to be accomplished by the making of the Loan to the Developer
<br />to finance and/or reimburse Project costs, in tending to overcome insufficient employment
<br />opportunities, insufficient diversification of industry and lack of adequate housing, are greater than
<br />the cost of public works or services (as that phrase is used in the Act) which will be required by
<br />the Project; and, therefore, that the financing of a portion of the Project by the making the Loan to
<br />the Developer under the Act: (i) will be of benefit to the health and general welfare of the City;
<br />and (ii) complies with the Act.
<br />SECTION II. Approval of Financing. The proposed financing of the Project by
<br />the funding of the Loan to the Developer under the Act, in the form that such financing was
<br />approved by the Commission, is hereby approved.
<br />SECTION III. Terms of the Loan. (a) A portion of the costs of the Project will be
<br />funded by the Loan to the Developer on an annual draw basis. The City shall fund the Loan on an
<br />annual draw basis over a five (5) year period with each annual draw amount totaling not more than
<br />$1,250,000 (the "Draw Amount"), in the aggregate principal amount not to exceed Five Million
<br />Dollars ($5,000,000), from River West TIF Revenues then on deposit in the allocation fund for the
<br />Allocation Area, and made available by the Redevelopment Commission to the City for the
<br />purposes of making the Loan to the Developer under the Act and the terms of the Loan Agreement.
<br />The Loan shall (i) mature on December 31, 2029 (the "Maturity Date"), (ii) bear no interest, except
<br />as provided herein, and (iii) be secured by the pledge of an unsecured promissory note (the "Note")
<br />of the Developer, with payments under the Note to be guaranteed by Intend Indiana, Inc. as the
<br />sole owner and operator of the Developer, to the extent the Note is not forgiven pursuant to the
<br />Loan Agreement. Subject to the Unavoidable Delay provisions of the Loan Agreement, the
<br />principal of each outstanding Draw Amount on the Loan shall be forgiven upon the earlier of (i)
<br />the substantial completion of the corresponding portion of the Project as evidenced by receipt of
<br />the certificate required by Section 3.2 of the Loan Agreement, or (ii) the repayment of any principal
<br />not previously forgiven and remaining outstanding and interest, if any, of the Loan on the Maturity
<br />Date. In the event that the Developer abandons the Project or otherwise fails to proceed to
<br />2
<br />
|