Approving a First Amendment to the Interlocal Agreement of Public Safety Answering Points in St. Joseph County

Home Browse Search

WHEREAS, South Bend previously issued its Taxable County Economic Development Income Tax Refunding Bonds, Series 2006 A and Taxable County Economic Development Income Tax Refunding Bonds, Series 2006 B (collectively, the "South Bend Bonds ") payable solely out of the South Bend CEDIT which finally mature on February 1, 2017; and WHEREAS, the payment of principal of and interest on the South Bend Bonds constitutes a senior lien on the South Bend CEDIT; and WHEREAS, in order to permit the County to receive the amounts due under the South Bend Designation without regard to the South Bend Bonds, South Bend desires to prepay its monthly share of certain Debt Service Payments on the County Bonds, with the amount of such prepayment equaling the amount otherwise due and payable under the South Bend Designation until such time as the South Bend Bonds finally mature, beginning with the monthly share due in the month following the month in which this Amendment is executed and ending with the monthly share due in February, 2017 (the 'Prepayment Amount "); and WHEREAS, in exchange for and upon receipt of the Prepayment Amount, the County shall hold the South Bend Designation in abeyance until March 1, 2017, and the Designation shall be without effect until such date, and the County shall transfer monthly to South Bend the entire amount of South Bend CEDIT otherwise due and owing to South Bend; and WHEREAS, under Article V of the Agreement, the Parties agreed to fund the operating and replacement costs of the Consortium (as defined in the Agreement) and to pay certain Assessments as set forth in the Agreement; and WHEREAS, Section 5.06 of the Agreement permits the County to intercept and withhold CEDIT from any Party that is delinquent in paying the Assessments due by such party; and WHEREAS, South Bend has determined to issue bonds for the purpose of financing certain park improvements, the principal of and interest on which bonds would be payable from the South Bend CEDIT (the 'Park Bonds "); and WHEREAS, South Bend receives distributive shares of the public safety option income tax under IND. CODE § 6- 3.5 -6 -31 (the 'Public Safety LOIT ") and desires to substitute Public Safety LOIT for CEDIT as the intercept funding source if it is delinquent in paying an Assessment provided for in Article V of the Agreement in order to permit South Bend to issue the Park Bonds with debt service payable from the South Bend CEDIT free from the intercept mechanism provided by the Agreement; and WHEREAS, Mishawaka receives distributive shares of the Public Safety LOIT and also desires to substitute Public Safety LOIT for CEDIT as the intercept funding source if it is delinquent in paying an Assessment provided for in Article V of the Agreement in order to provide Mishawka the ability to use its monthly distributive share of CEDIT for other purposes, including the payment of debt service, free from the intercept mechanism provided by the Agreement; and -2- US.56189914.04