Approval of the Issuance of Bonds Providing Certain Economic Development Facilities - Kite Capital, LLC Erskine Village Project

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RESOLUTION NO. J Z 17— 6-3 A RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA, COMMON COUNCIL PROVIDING PRELIMINARY APPROVAL OF THE ISSUANCE OF BONDS FOR THE PURPOSE OF PROVIDING CERTAIN ECONOMIC DEVELOPMENT FACILITIES (Kite Capital, LLC Erskine Village Project) WHEREAS, the City of South Bend, Indiana (the "City "), is authorized by I.C. 36 -7 -11.9 and 12, as supplemented and amended (the "Act "), to issue revenue bonds for the financing of economic development facilities, the funds for said financing to be used for the development, construction, installation and equipping of said facilities; and WHEREAS, the City, the South Bend Redevelopment Commission (the "Redevelopment Commission ") and Kite Capital, LLC (the "Company "), have entered into a Development Agreement (the "Agreement') pursuant to which the Company has agreed to undertake the demolition of the former Montgomery Ward store and automotive service center and the construction of a discount department store consisting of approximately 123,680 square feet (the "Project'), which Project is the initial phase of the construction by Company of a 450,000 - 500,000 square foot retail power center having a village concept to be known as 'Erskine Village" on the site of the current Scottsdale Mall in the City (the "Site "); and WHEREAS, pursuant to the Agreement, the City and the Redevelopment Commission have agreed to assist the Company with the provision of certain economic incentives to the Company; and WHEREAS, the Company has advised the South Bend Economic Development Commission (the "Commission ") and the City that they propose that the City issue economic development revenue bonds for the purpose of providing financing for certain economic development facilities consisting of the development and construction of the Project; and WHEREAS, the Company has proposed that the City issue its revenue bonds under the Act to finance the development and construction of the Project under a financing agreement whereby the proceeds of such bonds would be utilized to develop and construct the Project and the principal of, premium, if any, and interest on said bonds shall be payable solely from tax increment revenues to be pledged by the Redevelopment Commission and resulting from the increase in the assessed value of real property which comprises the Site and improvements thereon (the "Tax Increment'), with the aggregate principal amount of such bonds not to exceed Six Million Dollars ($6,000,000); and the Company has further advised the City that the determination by the City to proceed with the issuance of such bonds constitutes a substantial inducement to the Company to proceed with the Project; and WHEREAS, the Company has submitted evidence regarding the adverse competitive effect of the Project on similar facilities already constructed or operating in the City; and