Approving Issuance of Bonds of the South Bend Redevelopment District

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120ON COUNTY -CITY BUILDING 227 W. JEFFERSON BLVD. SOUTH BEND, INDIANA 46601 -1830 PHONE 574.235.9216 FAx 574.235.9928 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR DEPARTMENT OF ADMINISTRATION AND FINANCE April 21, 2014 Mr. Oliver Davis, President City of South Bend Common Council 227 W. Jefferson Boulevard, 41h Floor South Bend, Indiana 46601 RE: 2014 Redevelopment Commission Refunding Bonds Dear President Davis: Attached for filing with the Common Council is a Resolution to authorize the issuance of refunding bonds of the South Bend Redevelopment District (the "Refunding Bonds ") that would be issued to refund the South Bend Redevelopment District Special Taxing District Bonds of 2002 (the "2002 Bonds "). The 2002 Bonds are outstanding in the principal amount of $3,405,000. It is anticipated that the refunding of the 2002 Bonds will result in a significant savings for the South Bend Redevelopment Commission. Like the 2002 Bonds, it is anticipated that all the debt service on the Refunding Bonds will be paid from TIF Revenues from the Airport TIF Area. In order to increase the marketability of the Bonds, the Bonds will also be issued with a special benefits tax backup to the TIF Revenues. The Refunding Bonds will have a final maturity no later than January 1, 2022, which is the same term as the existing 2002 Bonds. The Redevelopment Commission is to authorize the issuance of the Refunding Bonds at its meeting on April 24, 2014. Indiana law requires that the Common Council approve these actions of the Redevelopment Commission, through the Common Council Resolution. I will present this bill to the Common Council at the appropriate committee and council meetings on April 28, 2014. mall