07-13-15 Common Council Meeting Minutes

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REGULAR MEETING JULY 13, 2015 the funds and accounts previously created for the payment of the rental payments due under the Lease; and WHEREAS, in conjunction with the issuance of the Refunding Bonds, the Authority and the Commission would enter into an addendum to the Lease (the "Addendum ") in order to reduce rental payments paid by the Commission under the Lease to correspond to the savings achieved through the issuance of Refunding Bonds; and WHEREAS, the Common Council desires to approve the Authority proceeding to issue the Refunding Bonds and the Authority and the Commission entering into the Addendum, pursuant to Indiana Code 36 -7- 14.5 -13, for the purpose of reducing the lease rentals payable under the Lease following the issuance of the Refunding Bonds; THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby approves the issuance by the Authority of the Refunding Bonds in the aggregate principal amount not to exceed $37,350,000 for the purpose of advance refunding the Prior Bonds in order to reduce the amount of the lease rentals payable under the Lease by the Commission, provided that the Authority shall issue the Refunding Bonds only in the event that the refunding results in a net present value savings of at least One Million and 00 /100 Dollars ($1,000,000.00). The maximum interest rate on the Refunding Bonds shall not exceed five percent (5.0 %) and the final payment on the Refunding Bonds shall be not later than February 15, 2033 (the same final payment date of the Prior Bonds). The Refunding Bonds shall be subject to optional and mandatory sinking fund redemption as set forth in the Bond Resolution. SECTION II. The Common Council hereby approves of the Authority and the Commission entering into the Addendum, pursuant to Indiana Code 36 -7- 14.5 -13, following the sale of the Refunding Bonds for the purpose of reducing the rentals due under the Lease. 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 bythe Mayor, and otherwise executed and delivered in accordance with any and all laws pertaining thereto. COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA Member of the Common Council Councilmember Gavin Ferlic, Chairperson, Community Investment Committee met this afternoon and send bill 15 -61 to the full Council favorably. Presenter: Brock Zeeb, Department of Community Investment, Offices on the 14" floor — Before you is a resolution proposed to refund the 2008 issued Eddy Street Commons bond. The net savings to the city over the 18 year life remaining on the bond will be $3 million. The anticipated refunding rate that we would receive would be 3.34 %. The current bond interest rate now is 5.796 %. I am here to answer any questions that you may have. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Mr. Gavin Ferlic made a motion to adopt resolution 15 -61. 24