Approving the Issuance and sale of South Bend Redevelopment Authority Lease Rental refunding bonds (MPAC Project)

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RESOLUTION NO. ~ ~ ~~" - ~ A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING THE ISSUANCE AND SALE OF SOUTH BEND REDEVELOPMENT AUTHORITY LEASE RENTAL REFUNDING BONDS (MORRIS PERFORMING ARTS CENTER PROJECT) WHEREAS, the Common Council of the City of South Bend, Indiana (the "Common Council") is the fiscal body of the City of South Bend, Indiana (the "City"); and WHEREAS, the South Bend Redevelopment Commission (the "Commission") is the governing body of the South Bend Redevelopment District (the "District"); and WHEREAS, the South Bend Redevelopment Authority (the "Authority") has been created pursuant to Indiana Code 36-7-14.5 as a separate body, corporate and politic, and as an instrumentality of the City to finance local public improvements for lease to the Commission; and WHEREAS, the Authority previously entered into a lease with the Commission dated as of May 1, 1997, as amended (the "Lease"), which Lease was heretofore approved by this Common Council and pursuant to which Lease the Authority leased to the Commission certain local public improvements, namely the Morris Performing Arts Center, which includes the Morris Civic Center and certain portions of the Palais Royale facility and related improvements; and WHEREAS, the Authority previously issued its Lease Rental Revenue Bonds of 1998 (Morris Performing Arts Center Project) (the "Prior Bonds") for the purpose of acquiring, constructing, renovating and equipping the Morris Performing Arts Center; and WHEREAS, the Authority previously adopted its Resolution No. 162 at a meeting of the Authority held on January 16, 2008, in which the Authority determined to issue and sell its lease rental refunding bonds in an aggregate principal amount not to exceed Eight Million Dollars ($8,000,000) (the "Refunding Bonds") for the purpose of currently refunding the Prior Bonds to provide a savings; and WHEREAS, the Authority was not able to sell its Refunding Bonds at interest rates which would provide sufficient savings prior to July 1, 2008, due to market conditions; and WHEREAS, Section 164 of P.L. 146-2008 added § 6-1.1-17-20.5 to the Indiana Code effective as of July 1, 2008, which now requires that the Common Council, as the fiscal body of the City, approve of the issuance of the proposed Refunding Bonds by the Authority; and WHEREAS, as a result of the issuance of the Refunding Bonds and the corresponding reduction of rental payments due under the Lease, the Commission will achieve significant annual savings; and BDDBOI 5554144v1