Loading...
HomeMy WebLinkAbout05-17 Eddy Street Commons Phase II Bond Issuance227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 January 3, 2017 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT Mr. Tim Scott, President South Bend Common Council 4th Floor County -City Building South Bend, IN 46601 RE: Eddy Street Commons Phase II Dear President Scott: PHONE: 574/235 -9371 FAx.574/235 -9021 Filed in Clerk's Office 0L6 7 J, KAREEMAH FOWLER CITY CLERK, SOUTH BEND, IN Attached for the Common Council's consideration is an ordinance and associated Development Agreement (Kite Realty Group/Eddy Street Commons Phase II) that recently passed unanimously through the Redevelopment Commission. This development agreement outlines approximately $150 million in investment in mixed use residential, hotel, retail, and a doubled in size Robinson Community Learning Center. This all comes with no up -front City cash investment. The TIF revenues generated from the project once it is built will go to pay the debt service in the future. It is truly a project that pays for itself. We have a phenomenal partnership with Kite Reality Group and are looking forward to seeing this project come to fruition starting in early 2017. I have respectfully requested that this project be assigned to the Community Investment Committee ahead of the January 9th meeting so that we can have a committee meeting on the 0 and a final vote on the ordinance at the meeting on the 23" of January. The City and developer have an aggressive timeline and want to get into the bond sales early in the year. Thank you for your consideration. I will attend the Committee and Council meetings to address any questions. E PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ADMINISTRATION & FINANCE ECONOMIC RESOURCES TIM CORCORAN PAMELA C. MEYER BRIAN PAwLOWSKI ELIZABETH LEONARD INKS AARON KOBB ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AUTHORIZING THE CITY OF SOUTH BEND, INDIANA TO ISSUE ITS TAXABLE ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2017 (EDDY ST. PHASE II) IN THE PRINCIPAL AMOUNT NOT TO EXCEED TWENTY -FIVE MILLION DOLLARS ($25,000,000) AND APPROVING OTHER ACTIONS IN RESPECT THERETO STATEMENT OF PURPOSE AND INTENT Pursuant to I.C. 36 -7 -11.9, I.C. 36 -7 -12 and I.C. 36 -7 -14 (collectively, the "Act "), the City of South Bend, Indiana (the "City ") is authorized and desires to issue its Taxable Economic Development Revenue Bonds, Series 2017 (Eddy St. Phase II) (the "Bonds ") in an amount not to exceed $25,000,000 for the purpose of (i) financing the construction of a portion of Phase II of the development project commonly known as Eddy Street Commons (the "Project ") located within Allocation Area No. 2 of the area formerly known as the Northeast Neighborhood Development Area and now known as the River East Development Area (the "Area ") within the City, (ii) funding a reserve for the Bonds, and (iii) paying costs of issuance of the Bonds. On December 29, 2016, the Redevelopment Commission of the City (the "RDC ") adopted a resolution pledging tax increment revenues generated from the Area (the "TIF Revenues ") as repayment for the Bonds, on a parity with any other bonds issued and payable from a first lien on the TIF Revenues, in accordance with and subject to the terms and conditions of a trust indenture (the "Indenture ") between the City and an institutional trustee. Pursuant to the Act, the Economic Development Commission of the City (the " BDC ") prepared a report (the "Report") evaluating certain aspects of the Project and submitted the Report to the Executive Director of the Area Plan Commission of St. Joseph County, Indiana, which serves as the Plan Commission for the City, and the Superintendent of the South Bend Community School Corporation to provide each the opportunity to provide written comments concerning the Report. Further, pursuant to the Act, the EDC published notice of a public hearing to be held on the proposed issuance of the Bonds (the "Public Hearing ") and, on January 4, 2017, held a meeting and conducted the Public Hearing in accordance with the Act, and adopted a resolution making certain findings and approving the issuance of the Bonds, the Report, and the substantially final forms the Bonds and the Indenture presented at such meeting and subsequently sent its Resolution recommending issuance of the Bonds to this Council. The Council now desires to authorize issuance of the Bonds and finds that all conditions precedent to issuance of the Bonds have been met pursuant to the Act. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AS FOLLOWS: SECTION I. Pursuant to the Act and subject to all of the terms and provisions contained in the Indenture, the Common Council hereby approves the issuance of the Bonds in the amount not to exceed $25,000,000 for the purpose of financing the construction of the Project. All of the terms and provisions related to the Bonds referenced in I.C. 36- 7 -12 -27 shall be as described in the Indenture and are incorporated herein by reference. SECTION II. The Common Council approves the issuance of up to $25,000,000 in Bonds bearing interest at an annual interest rate not to exceed six percent (6 %) and maturing in not more than twenty -five (25) years, payable from TIF Revenues pledged to the payment of principal of and interest on the Bonds by the RDC of the City, on a parity with any other bonds issued and payable from a first lien on the TIF Revenues. SECTION III. The Common Council further approves all prior actions and findings of the RDC and EDC related to the issuance of the Bonds and authorizes the President of this Common Council and the Controller to approve and execute all documents necessary to effect the issuance of the Bonds. SECTION IV. The Common Council further approves the Report and the substantially final forms of the Bonds and the Indenture presented at this meeting and all of the terms and provisions contained in such documents. SECTION V. This ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. Member, South Bend Common Council ATTEST: City Clerk Presented by me to the Mayor of the City of South Bend, Indiana on the day of 2 at o'clock m. Approved and signed by me on the o'clock at m. READING 'JBLIC HEARING rd READING -10T APPROVED :PERKED 'ASSED City Clerk day of ,2 ,at Mayor, City of