5B2 Resolution No. 3677 (Western Ave. Transformation District HUD Loan) - Signed

Home Browse Search

2 WHEREAS, the Commission desires to pledge such Tax Increment Revenues to the City for its use in order to pay the principal of and interest on the Section 108 Loan to the extent CDBG Funds are insufficient for such purpose; and WHEREAS, the Commission shall have no other obligation with respect to the payment of principal of or interest on the Section 108 Loan other than the payment of the Tax Increment Revenues which may be generated in the Allocation Areas; NOW, THEREFORE, BE IT RESOLVED, BY THIS SOUTH BEND REDEVELOPMENT COMMISSION AS FOLLOWS: SECTION 1. To the extent CDBG Funds are insufficient to pay the principal of and interest on the Section 108 Loan when due, the Commission hereby irrevocably pledges the Tax Increment Revenues generated in the Allocation Areas (being those Tax Increment Revenues available after the payment of all indebtedness payable from such Tax Increment Revenues and such lease rentals the Commission may determine from time to time to pay from such Tax Increment Revenues) to the City for its use in order to pay the principal of and interest on the Section 108 Loan for a period up to but not exceeding twenty (20) years from the date of the origination of the Section 108 Loan. Such pledge shall terminate at the earliest of the (i) final payment on the Section 108 Loan, (ii) the conclusion of the twenty (20) year period, or (iii) expiration of the Allocation Areas. SECTION 2. There is hereby created and established within the Redevelopment District Bond Fund, a Western Avenue Transformation District Project Principal and Interest Account (the “Principal and Interest Account”). SECTION 3. To the extent CDBG Funds are insufficient to pay the principal of and interest on the Section 108 Loan when due, Tax Increment Revenues received by the Commission and not otherwise needed as set forth in Section 1 for the payment of indebtedness or lease rentals shall be deposited into the Principal and Interest Account and appropriated for payment to the City for its use in order to pay the principal of and interest on the Section 108 Loan. Tax Increment Revenues received in any year in excess of the amount necessary to pay the principal of and interest on the Section 108 Loan in said year do not remain pledged, may be transferred to any other account permitted by law, and may be used by the Commission for any purpose set forth in I.C. 36-7-14-39. Notwithstanding anything in this Resolution to the contrary, the pledge of the Tax Increment Revenues to the Section 108 Loan described herein shall be junior and subordinate to the Prior Obligations as long as the Prior Obligations remain outstanding. SECTION 4. For the avoidance of doubt, tax increment revenues derived from the Riverwalk Allocation Area, Lincoln and Kennedy Park Residential Housing Development Program Area Allocation Area, Lafayette North Allocation Area, Lafayette South Allocation Area, Ignition Park Allocation Area, Downtown North Allocation Area, Michigan Street Corridor Allocation Area, Studebaker Campus Allocation Area, Riverfront West Allocation Area and