HomeMy WebLinkAboutApproving a Proposed Lease for Certain Local Public Improvements, The Issuance of Lease Rental Revenue BondsRESOLUTION
4423 -15
Passed by the Common Council of the City of South Bend, Indiana
February 9,
Attest:
15
20
Presented by me to the Mayor of the City of South Bend, Indiana
February 10, 2015
City Clerk
President of Common Council
Approved and signed by me AAr J&#tq, 20Z—.
City Clerk
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RESOLUTION NO. 14L3 5
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY
OF SOUTH BEND, INDIANA, APPROVING A PROPOSED LEASE
FOR CERTAIN LOCAL PUBLIC IMPROVEMENTS BETWEEN
THE SOUTH BEND REDEVELOPMENT AUTHORITY, AS
LESSOR, AND THE SOUTH BEND REDEVELOPMENT
COMMISSION, AS LESSEE, THE ISSUANCE OF LEASE
RENTAL REVENUE BONDS BY THE SOUTH BEND
REDEVELOPMENT AUTHORITY AND OTHER RELATED
MATTERS
WHEREAS, the South Bend Redevelopment Commission (the "Commission "),
governing body of the South Bend Department of Redevelopment and the South Bend
Redevelopment District (the "Redevelopment District "), exists and operates under the provisions
of Indiana Code 36 -7 -14, as amended from time to time (the "Act "); and
WHEREAS, the Commission has previously designated and declared an area in the
City of South Bend, Indiana (the "City "), known as the River West Development Area to be a an
economic development area and an allocation area (the "Area ") for the purpose of collecting tax
increment finance revenues, adopted an Economic Development Plan for the Area, and established
an allocation fund for said Area; and
WHEREAS, the Commission has been considering the need to provide for the
issuance of bonds to finance the acquisition, construction and installation of certain local public
improvements as part of the City's Smart Streets initiative and Westside Main Streets
Revitalization Plan which local public improvements shall consist of all or any portion of the
acquisition, construction and installation of the following: pavement, streetscape, and sidewalk
improvements, bulb -out installation, street signage and markings, installation of bicycle facilities,
road widening, intersection and traffic signal interconnection improvements, utility relocation,
utility and sidewalk improvements, and installation of lighting and right -of -way improvements, all
of which local public improvements are to be located along the following stretches of road: (i)
Bartlett Street between Lafayette Blvd and Riverside Drive; (ii) Michigan Street between
Riverside Drive and Barbie Street; (iii) Main Street between Park Lane and Barbie Street; (iv) St.
Joseph Street between LaSalle Avenue and Western Avenue; (v) Lafayette Blvd between Park
Lane and Indiana Avenue; (vi) Western Avenue between Michigan Street and Mayflower Road;
(vii) Lincolnway West between West LaSalle Avenue and the City limits (Woodland Avenue);
(viii) Marion and Madison Streets between Michigan Street and Linconlway West; and (ix) any
cross streets related to the foregoing stretches and various expenses related thereto (collectively,
the "Project "); and
WHEREAS, on January 15, 2015, the Commission adopted Resolution 3267
approving the form of a lease to be dated as of February 1, 2015, with the Authority (the "Lease "),
scheduling a public hearing on the Lease to be held on January 29, 2015, authorizing the
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publication of a notice of public hearing on said lease pursuant to Indiana Code § 5 -3 -1; and
WHEREAS, a notice of public hearing on the Lease was published on January 16,
2015, pursuant to Indiana Code 5 -3 -1 (the "Notice "); and
WHEREAS, on January 29, 2015, the Commission conducted said public hearing
and all interested parties were provided the opportunity to be heard at the hearing; and
WHEREAS, the Commission, at its meeting on January 29, 2015, adopted
Resolution No. 3273, finding, pursuant to the Act, that pursuant to the Lease, a copy of which is
attached hereto as Exhibit A, the rental payments to be paid by the Commission to the Authority
pursuant to said Lease, at a rate not to exceed One Million Nine Hundred Ninety Thousand and
00 /100 Dollars ($1,990,000.00) per year, subject to reduction as set forth in the Lease, in
semiannual installments beginning on the day the Project is complete and ready for use, or July 15,
2017 (or such later date as may be set forth in the Lease), whichever is later, are fair and reasonable,
and finding, pursuant to Section 25.2 of the Act, that the use of the Project throughout the term of
the Lease, which term shall not exceed twenty -two (22 years) and is subject to reduction as set
forth in the Lease, will serve the public purpose of the City, and is in the best interests of its
residents; and
WHEREAS, said Resolution No. 3273 further authorized the Secretary of the
Commission to file with the Common Council of the City (the "Common Council ") an approving
resolution for the purposes of said Common Council's finding, prior to the Commission's execution
of said Lease, that the rental payments are fair and reasonable and that the use of the Project
throughout the term of said Lease will serve the public purpose of the City and is in the best
interests of its residents, and for purposes of approving the Lease; and
WHEREAS, the Authority, at a meeting held on January 21, 2015, adopted
Resolution No. 191, which, among other things, approved the form of the Lease, authorized the
President and the Secretary - Treasurer of the Authority to execute the Lease and acknowledged
that the rentals paid by the Commission pursuant to such Lease will be used by the Authority to
pay the principal of and interest on lease rental revenue bonds (the "Bonds ") proposed to be issued
by the Authority to finance the costs related to the Project and the Bonds; and
WHEREAS, the Common Council desires to approve said Lease, pursuant to 25.2
of the Act, which provides that any lease approved by a resolution of the Commission must be
approved by a resolution of the Common Council of the City, and the issuance of Bonds by the
Authority, pursuant to Indiana Code 36 -7- 14.5 -19 and Section 25.1 of the Act; and
THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby finds that the rental payments, as
approved by the Commission, are fair and reasonable, and further finds that the use of the Project
throughout the term of the Lease will serve the public purpose of the City and is in the best interests
of its residents. The Common Council further finds based upon information provided by H.J.
-2-
Umbaugh and Associates, LLP, financial advisor to the City, that (i) the interest rates on the Bonds
are expected not to exceed six percent (6 %); (ii) the term of the Bonds is expected not to exceed
twenty -two (22) years; (iii) the Authority expects to capitalize interest on the Bonds for a period
beginning on the date of issuance of the Bonds and extending through and including not later than
February 1, 2017; and (iv) the Bonds will be subject to optional redemption by the Authority
beginning on a date not later than ten (10) years from the date of issuance of the Bonds.
SECTION II. The Common Council hereby approves said Lease, as approved by
the Commission, pursuant to Section 25.2 of the Act, in substantially the form provided at this
meeting and attached hereto as Exhibit A. The Common Council hereby approves of the issuance
of the Bonds by the Authority as described herein in an aggregate principal amount not to exceed
Twenty -five Million and 00 /100 Dollars ($25,000,000.00).
SECTION III. This Resolution shall be in full force and effect from and after the
time it has been adopted by the Common Council, approved by the Mayor, and otherwise executed
and delivered in accordance with any and all laws pertaining thereto.
COMMON COUNCIL OF THE
CI UTH BEND, INDIANA
Member of the Common Council
PRESENTED L i -`
NOT APPROVED
ADOPTED L –q –(- -3
Filed Office
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CITY Ct.EP" ,
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
15 -10 A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, APPROVING A
PROPOSED LEASE FOR CERTAIN LOCAL PUBLIC
IMPROVEMENTS BETWEEN THE SOUTH BEND
REDEVELOPMENT AUTHORITY, AS LESSOR, AND THE
SOUTH BEND REDEVELOPMENT COMMISSION, AS
LESSEE, THE ISSUANCE OF LEASE RENTAL REVENUE
BONDS BY THE SOUTH BEND REDEVELOPMENT
AUTHORITY AND OTHER RELATED MATTERS
Respectfully report that they have examined the matter and that in their opinion,
this bill is being recommended to the full Council with a favorable
recommendation.
This bill was heard by the Community Investment Committee.
Karen L. White
Chairperson, Committee of the Whole
227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SouTH BEND, IN 46601 -1830
February 3, 2015
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
Mr. Tim Scott
President
South Bend Common Council
227 West Jefferson Boulevard
4th Floor
South Bend, IN 46601
Dear President Scott:
SCOTT FORD, EXECUTNE DIRECTOR
PHONE: 574/235 -9371
FAX: 574/235 -9021
Re: Resolution Approving Lease & Terms
Between South Bend Redevelopment
Commission & Redevelopment Authority
Attached for filing with the Common Council of the City of South Bend is a Resolution to
approve the execution and delivery of a lease between the South Bend Redevelopment Commission
(Commission) and the South Bend Redevelopment Authority (Authority).
The purpose of the Lease Agreement between the Commission and the Authority is to permit
issuance of bonds to finance the construction of local public improvements to support the City's Smart
Streets initiative and West Side Main Streets Revitalization Plan. This bond is consistent with the inter-
related aims of: Fiscal stewardship; Economic development; and, a Plan- driven redevelopment
agenda, and will allow the City to strategically focus its resources on current priorities.
The bond amount is to be $25M inclusive of all transaction costs, capitalized interest and debt
service reserve fund, netting approximately $21.4M in proceeds available for projects. The term of the
bond is anticipated to be repaid over 20 years, with a maximum lease rental payment of up to $1.9M
peryear.
The bond project consists of the planning, engineering, acquisition, construction, and
maintenance of certain additions, changes, and including, but not limited to pavement, streetscape,
sidewalk, bulb -outs, signal control changes, trees, signage, markings, utilities, bicycle facilities,
number of lanes, lane direction, drainage, utilities, parking, lighting, and right -of -way for the following
stretches of road:
1) Bartlett Street between Lafayette Blvd and Riverside Drive
2) Michigan Street between Riverside Drive and Barbie Street
3) Main Street between Park Lane and Barbie Street
4) St. Joseph Street between LaSalle Avenue and Western Avenue
5) Lafayette Blvd between Park Lane and Indiana Avenue
6) Lincolnway West between W LaSalle Avenue and the City Limits (Woodland Avenue)
ASSISTANT ExF.CUT vE DIRECTOR PIANNING NEIGHBORHOOD ENGAGEMENT ECONOMIC RESOURCES
CHRIS FIELDING JITYN KAIN PAMELA C. MEYER BROCKZEEB
7) Western Avenue between Michigan Street and Mayflower Road
8) Marian and Madison Streets between Michigan and Lincolnway West.
9) Any cross streets related to the foregoing stretches.
The project is scheduled to be complete by fall 2016. The bond proceeds will enable a more
efficient implementation pattern with concurrent construction that will minimize traffic disruption.
On January 15, 2015, the Commission approved Resolution No. 3267. This Resolution
approved preliminary plans, specifications, and cost estimates; scheduled a public hearingfor January
29; authorized the publication of a notice of public hearing, which was then published January 16,
2015 according to law; and found that the project is not a controlled project for purposes of the lease
approval procedures of IC 6- 1.1- 20 -1.1. On January 29, 2015, the public hearing was conducted and
all interested parties were given the opportunity to be heard. At that meeting the Commission
approved Resolution 43273, which authorized its President and Secretary to execute and deliver the
lease; determined the annual rental payments to be fair and reasonable and that the project will serve
a public purpose; and directed the Secretary to transmit to the Council a copy of the Resolution and
authorized the filing with the Council of an approving Resolution.
The South Bend Redevelopment Authority adopted Resolution 4191 on January 21, 2015
which approved the proposed form of lease between the Authority and the Commission for the lease
of the Project and for the issuance of lease rental revenue bonds of the Authority to finance the costs
of the Project, including costs relating to the issuance of such bonds.
Approval by the Common Council of the attached Resolution determining that the lease terms
are fair and reasonable, that the project serves a public purpose, and approving issuance of bonds
will enable the Commission to complete this process for the benefit of the City and its citizens.
I will make the presentation of this Resolution to the Common Council at its appropriate
Committee meeting and at the regular meeting.
Thank you for your consideration.
Sincerely,
Scott Ford
Director, Department of Community Investment
Red in Office
FE3 - 3 2914
CITY CLERK, 5L4; i N ',L -NDON