No. 2294 setting a public hearing on the appropriation of tax increment financing revenues from Allocation Area No. 2 Fund for the payment of certain obligations related to the South Side Development Area Allocation Area No. 2 and other related matters

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and WHEREAS, on August 20, 2004, the Commission adopted Resolution No. 2087 (the "Pledge Resolution") pledging Project Tax Increment Revenues for the payment of taxable economic development bonds originally issued in an aggregate principal amount of Three Million Five Hundred Thousand and 00/100 Dollars ($3,500,000.00) (the "EDC Bonds" and with the District Bonds, the "Bonds"), which pledge ranks junior and subordinate the District Bonds, if and when issued; and WHEREAS, the District Bonds were issued on February 8, 2006 in an aggregate principal amount of Two Million Four Hundred Forty Thousand and 00/100 Dollars ($2,440,000) at a variable interest rate, with a maximum rate of eight percent (8.0%); and WHEREAS, the District Bonds are secured by the Trust Indenture (the "District Bond Indenture") between the Commission and The Bank of New York Trust Company, N.A. (the "District Bond Trustee") dated February 1, 2006 and by a Letter of Credit issued pursuant to a Reimbursement Agreement dated February 1, 2006 between Fifth Third Bank and Anchor South Bend, LLC (collectively, the "Letter of Credit), which Letter of Credit requires the optional redemption of the District Bonds as set forth in Exhibit A; and WHEREAS, EDC Bonds were issued on July 13, 2005 at a fixed interest rate of eight percent (8.0%) with interest payable on February 1, 2006, and on each February 1 and August 1 thereafter and maturing on February 1, 2025 with mandatory sinking fund payments due on February 1 in the years 2009 through and including 2025, a schedule of which debt service payments is as set forth at Exhibit B; and WHEREAS, the Pledge Resolution requires that on January 15 and July 15 of each year all Proj ect Tax Increment Revenues, to the extent they are available, must be deposited in the Allocation Area No. 2 Fund and further set aside and deposited into the Bond Principal and Interest Account of the Allocation Area No. 2 in an amount necessary to pay (i) the principal of and interest on the District Bonds currently or scheduled to be due and expected to be paid from the Project Tax Increment Revenues for that bond year along with any shortfall from previous bond years with respect to the District Bonds and (ii) the principal of and interest on the EDC Bonds currently or scheduled to be due and expected to be paid from the Project Tax Increment Revenues for that bond year along with any shortfall from previous bond years with respect to the EDC Bonds, and only thereafter may excess Project Tax Increment Revenues be used for any other purpose set forth in Section 39 of the Act; and WHEREAS, a portion of the proceeds of the District Bonds have been deposited with the District Bond Trustee to pay the debt service charges on the District Bonds through August 1, 2008; and WHEREAS, under the District Bond Indenture, Proj ect Tax Increment Revenues sufficient to pay the continued debt service payments on the District Bonds, to the extent such Project Tax Increment Revenues are available for such purpose, must be deposited with the District Bond Trustee