9943-09 Appropriating $955,315 of Indiana Community Revitalization Enhancement District increment funds

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RESOLUTION NO. 3 -2005 RESOLUTION OF,THE SOUTH BEND ADVISORY COMMISSION ON INDUSTRIAL DEVELOPMENT PLEDGING INCOME TAX AND GROSS RETAIL INCREMENTAL AMOUNTS RECEIVED FROM THE STATE OF INDIANA WHEREAS, the South Bend Advisory Commission on Industrial Development (the "Commission") exists and operates under Indiana Code 36-7-13, as amended from time to time (the "Act"); and WHEREAS, on June 13, 2002, the Commission adopted Resolution No. 1-2002 (the "Designating Resolution") designating a community revitalization enhancement district within the meaning of the Act, known as the Studebaker/Oliver CRED area (the "District"), approving a plan for the District, and authorizing the establishment of an industrial development fund within the meaning of the Act; and WHEREAS, on September 9, 2002, the Indiana State Budget Agency (the "Agency") notified the City of South Bend, Indiana (the "City") that the Agency approved the designation of the District; and WHEREAS, pursuant to the Act, the District may capture incremental growth in state income and gross retail taxes ("CRED Revenues") for a period of up to fifteen years from its first allocation of CRED Revenues; and WHEREAS, the City has submitted an application to the Department of Housing and Urban Development ("HUD") for a Section 108 Loan Guarantee (the "Section 108 Loan") in the amount of Eleven Million Nine Hundred Eighty Thousand Dollars ($11,980,000), the proceeds of which are to be used for the acquisition, demolition, remediation and redevelopment of property blighted structures and property located in the area commonly known as the Studebaker/Oliver Project Area in the District (the "Project"); and WHEREAS, HUD has approved the City's application for the Section 108 Loan for the Project; and WHEREAS, the City will issue its notes to evidence the Section 108 Loan pursuant to a Financing Agreement with HUD by which City has agreed to pledge various revenues of the City, including available CRED Revenues of the District, for the payment of the Section 108 Loan; and + WHEREAS, in order to provide for the Section 108 Loan for the Project, the Commission desires to pledge CRED Revenues to the payment of the Loan; and WHEREAS, the Common Council of the City (the "Common Council") is expected to adopt an ordinance (the "Ordinance") to authorize the issuance of a note of the City to evidence the Section 108 Loan payable from CRED revenues and other revenues available to the City; BDDBOI 4218507v1