No. 2435 regarding reimbursement of certain City of South Bend funds advanced for the Eddy Street Commons project

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instrumentality of the City to finance local public improvements for lease to the Commission; and WHEREAS, to pay for the Project, the Commission has entered into a lease, as may be amended, between the Commission and the Authority dated as of October 1 S, 2007 (the "Lease"), which Lease was heretofore approved by this Commission, and pursuant to which the Commission shall lease from the Authority certain local public improvements including, without limitation, the Project; and WHEREAS, the Authority intends to issue bonds in an aggregate principal amount not to exceed Thirty Six Million and 00/100 Dollars ($36,000,000.00) pursuant to IC 36- 7-14.5-19 to be known as the "South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2008 (Eddy Street Commons Project)" (the "Bonds"), the proceeds of which are to be used to pay the expenses relating to the Project and to pay the costs of issuance of the Bonds; and WHEREAS, the Commission shall pay lease rentals from tax increment revenues collected in the Area, which lease rentals shall be deposited into the Eddy Street Commons Principal and Interest Account (the "Principal and Interest Account") in the Redevelopment District Bond Fund and, to the extent the tax increment revenues are insufficient, from a special tax levy upon all of the taxable property in the Redevelopment District of the City of South Bend, Indiana, which special tax shall be deposited into the Principal and Interest Account; and WHEREAS, the City has agreed to advance certain funds for a portion of the Project from the City's Major Moves Fund (the "Major Moves Fund") in an aggregate amount not to exceed Five Million Three Hundred Thousand and 00/100 Dollars ($5,300,000.00) and the City's Sewer Capital Fund (the "Sewer Capital Fund") in an aggregate amount not to exceed One Million Five Hundred Thousand and 00/100 Dollars ($1,500,000.00), provided, however, that the aggregate sum of funds that may be advanced will not exceed Six Million Seven Hundred Twenty-seven Thousand Three Hundred Ninety-seven and 00/100 Dollars ($6,727,397.00); and WHEREAS, the Commission desires to commit to reimburse the City for expenditures made by the City for local public improvements in or serving the Area, specifically, the reimbursement of the fiends advanced by the City fi-om the Major Moves Fund and the Sewer Capital Fund for a portion of the Project from tax increment finance ("TIF") revenues available after TIF revenues are deposited into the Principal and Interest Account created for the payment of lease rentals by the Commission to the Authority pursuant to the Lease (the "Available TIF Revenues"); NOW, THEREFORE, BE IT RESOLVED, by the South Bend Redevelopment Commission as follows: Section 1. The Commission hereby covenants to reimburse the City out of Available TIF Revenues, for expenditures made by the City for local public improvements in or serving the Area, specifically for the funds that the City has advanced or will advance from the Major Moves Fund in an aggregate amount not to exceed Five Million Three Hundred Thousand and 00/100 Dollars ($5,300,000.00) and the Sewer Capital Fund in an aggregate amount not to BDDBOI 5086072v I - 2 -