03-28-13 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting —March 28, 2013 6. NEW BUSINESS B. South Bend Central Development Area (4) continued... Bend Redevelopment Commission and the South Bend Redevelopment Authority and regarding related matters. (Century Center Bond Refunding) C. Airport Economic Development Area (1) Resolution No. 3124 accepting the transfer of real property from the South Bend Redevelopment Authority. (Blackthorn Golf Course and multiple lots in Blackthorn Corporate Park) Mr. Relos noted that most city owned lots in Blackthorn are in the name of the Redevelopment Authority. Since all bonds for Blackthorn are now fully paid, and in a continuation of the effort to transfer properties to the appropriate city agency, staff has begun the process to transfer these lots from the Authority to the Commission. When development opportunities occur in Blackthorn, having the properties already transferred to the Commission will allow for a quicker turn around when closing on the property. On March 20, 2013, a resolution to transfer these lots was approved by the Authority, subject to Commission approval of this Resolution. Once both bodies approve their respective resolutions, deeds will be prepared to complete the transfer. Staff requests approval of Resolution No. 3124. Ms. Jones asked Mr. Inks to explain for the audience why the Redevelopment Authority is involved. Mr. Inks responded that the Redevelopment Authority is specifically set up to issue lease revenue bonds. When the bonds are issued, they are used to purchase physical assets, such as land, building, etc., or to build a building. Whatever that asset is, is then leased from the Redevelopment Authority to the Redevelopment Commission so that the Commission can use its resources (often TIF funds) to make the lease payments and pay the bonds that are issued by the Redevelopment Authority. One of the prime benefits of using these revenue bonds is they do not count against the bond cap that the Redevelopment Commission has. When those assets are leased from the Authority to the Commission, the provisions of those leases indicate that at the time the bonds are paid off, the property is to be transferred to the Redevelopment Commission. The Redevelopment Authority has no function other than to issue bonds. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3124 accepting the transfer of real property from the South Bend Redevelopment Authority. (Blackthorn Golf Course and multiple lots in Blackthorn Corporate Park) v