Redeem the 1992 SB Redev Authority Taxable Lease/Rental Revenue Bonds (Palais Royale)

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ORDINANCE NO. ` ~ ~ ~ ~ ~-- AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, TO REDEEM THE 1992 SOUTH BEND REDEVELOPMENT AUTHORITY TAXABLE LEASE/RENTAL, REVENUE BONDS (PALAIS ROYALE); TO APPROPRIATE $34,314.63 FROM FUND #328 FOR BOND REDEMPTION PURPOSES; TO TRANSFER $260,686.37 FROM FUND #328 TO FUND #420 (SOUTH BEND CENTRAL DEVELOPMENT AREA T.I.F.); AND TO CLOSE FUND #328 DUE TO FULFILLMENT OF THE FUND'S PURPOSE STATEMENT OF PURPOSE AND INTENT In 1992 the City of South Bend through the South Bend Redevelopment Authority issued Taxable Lease/Rental Revenue Bonds in the total aggregate sum of $1,410,000 in order to acquire the Palais Royale building from private owners. Said Bonds were to be retired February 1, 2004, and the City wishes to redeem them on December 27, 2002. As of December 27, 2002 the total principal balance due the bondholders is $345,000 plus $10,180.46 in accrued interest, for a total due of $355,180.46. Early payment and retirement of the 1992 Palais Royale Bonds will result in savings of future interest payment Fund #328 known as "Redevelopment Bond/Palais Royale" Fund was established as the debt service reserve fund for the Palais Royale Bonds and said Fund has a present balance of $295,000. The City has learned from the Bond Trustee Wells Fargo Bank that the sum of $320,865.83 is also on deposit with Wells Fargo in a sinking fund, and in an operation and reserve fund specifically designated for these bonds. Accordingly, after crediting the City with funds on deposit at Wells Fargo, it will be necessary to appropriate $34,314.63 from Fund #328 for bond redemption purposes. The balance in that Fund of $260,686.37 will then be transferred to Fund #420 -South Bend Central Development Area Tax Incremental Fund. Because Fund #328 was specifically established as a debt reserve fund for the Palais Royale Bonds, and because that purpose has been fully satisfied, this Ordinance will also close Fund #328. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend as follows: Section I. The sum of $34,314.63 be and hereby is appropriated within Fund Number #328(Redevelopment Bond/Palais Royale) in order to redeem on December 27, 2002 the 1992 South Bend Redevelopment Authority Taxable Lease/Rental Revenue Bonds (Palais Royale), hereafter referred to as the ("Palais Royale Bonds"). Section II. The sum remaining in Fund #328 after the appropriation in Section I of $260,686.37 shall be transferred to Fund #420 South Bend Central Development Area Tax Incremental Fund.