5177-26 Resolution Approving a Lease Between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission and Taking Other Actions Related Thereto

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Avenue to its intersection with Eclipse Place (collectively, the "Leased Premises"), and (iii) that the use of the Leased Premises throughout the term of the Lease will serve the public purpose of the City and is in the best interests of its residents and(b)approving the Lease in the form presented at the Commission meeting for the purpose of paying the principal of and interest on the South Bend Redevelopment Authority Lease Rental Revenue Bonds, Series 2026 (the "Bonds") proposed to be issued by the Authority in one (1) or more series pursuant to Indiana Code 36-7- 14.5 to finance the Projects; and WHEREAS, at a meeting held on July 22, 2026, the Authority did adopt Resolution No. 220 whereby the Authority (a) indicated its intent to issue the Bonds in one (1) or more series to finance all or a portion of(i)the costs of the Projects; (ii) a debt service reserve fund, if necessary, in connection with the issuance of the Bonds; and (iii) costs incurred in 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 tax increment revenues from the River West Development Area; 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 tax pursuant to Section 27 of the Act in the event such tax increment revenues are ever insufficient; 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 of the City (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 Projects, all upon the following conditions: (a) the maximum aggregate principal amount of the Bonds shall not exceed $33,000,000; (b) the Bonds shall have a final maturity date which is not later than fifteen (15) years from the date of their issuance; (c) the maximum annual lease rental payment during the term of the Lease shall not exceed $5,000,000; (d) the maximum interest rate on any tax-exempt series of the Bonds shall not exceed six and one-half percent (6.50%) per annum and on any taxable series of the Bonds the maximum interest rate shall not exceed eight percent(8.00%)per annum; (e)the Bonds will be subject to optional redemption prior to maturity not earlier than five(5) years after the date of issuance of the Bonds; (f) the maximum term of the Lease shall not exceed nineteen (19) years; and (g) interest on the Bonds may be capitalized or paid from the proceeds of the Bonds based upon the recommendation of the municipal advisor to the Authority. 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 Projects 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 in the Leased Premises to the Authority and authorizes the Board of Public Works of the City to take such action that may be necessary to effectuate the transfer of the Leased Premises to the Authority as authorized herein. SECTION 3. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor.