Approving lease for public improvements between Redevelopment Authority and Redevelopment Commission

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ORDINANCE NO. ~~93"~ 1 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING A LEASE FOR CERTAIN PUBLIC IMPROVEMENTS BETWEEN THE SOUTH BEND REDEVELOPMENT AUTHORITY AND THE SOUTH BEND REDEVELOPMENT COMMISSION AND AUTHORIZING THE USE OF EDIT REVENUES BY THE COMMISSION FOR PAYMENT OF THE RENTALS THEREOF STATEMENT OF PURPOSE AND INTENT: On November 24, 1998, this Council adopted Resolution Number 2528-97 authorizing the Mayor to submit the City of South Bend's application to borrow funds through the United States Department of Housing and Urban Development's ("HUD") Section 108 Loan Guarantee Program ("Section 108 Loan"). Said application identified Economic Development Income Tax revenues ("EDIT") and property taxes allocable to the South Bend Central Development Area ("TIF") as partial repayment sources for the Section 108 Loan. In accordance with current HUD policy, the City must provide security for the repayment of the notes issued to evidence the Section 108 Loan. The City has determined to make revenues available for repayment of the Section 108 Loan through a lease between the South Bend Redevelopment Commission ("Commission") and the South Bend Redevelopment Authority ("Authority") which will enable the City to use EDIT and TIF revenues for the payment of the Section 108 Loan. The Commission at a meeting on February 19, 1999, adopted Resolution No. 1671, which, among other things, approved a proposed lease between the Commission and the Authority to be dated as of March 1, 1999, for land acquired or to be acquired, and the removal of improvements thereon (the "Project"), and directed the Secretary of the Commission to file a copy of said lease, as approved, with the Authority, scheduled a public hearing on said lease, pursuant to IC 36-7-14-25.2, and authorized the publication of a notice of public hearing on said lease pursuant to IC 5-3-1. The Authority, at a meeting on March 1, 1999, adopted Resolution No. 132 approving the proposed lease. On March 19, 1999, the public hearing was held and all interested parties were provided the opportunity to be heard at the hearing. The Commission, at its meeting on March 19, 1999, adopted Resolution No. 1673 finding, pursuant to IC 36-7-14.5-14, that the rental payments to be paid by the Commission to the Authority pursuant to the lease, at a rate not to exceed One Hundred Forty-Four Thousand Dollars ($144,000) per year in semiannual installments beginning on the day the Studebaker Lot Portion of the Project, as defined in the lease, is completed and ready for use or July 25, 1999 whichever is later, and Three Hundred Forty-Four Thousand Dollars ($344,000) in semi-annual installments beginning on the date the Downtown Portion of the Proj ect, as defined in the lease, is completed and ready for use, or July 25, 2003, whichever is later, through expiration of the lease, are fair and :ODMA\PCDOCS\SBDOCS 1132117\3