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Home My WebLink About17-36 Miami Hills Bond Approval �4 SpUTH `U d W .. PEACE, _ 1865 x �_. CITY OF SOUTH BEND COMMUNITY INVESTMENT June 20, 2017 Filed in Clerk's Office JUN 21 2017 Mr.Tim Scott, President South Bend Common Council KAREEMAH FOWLER 4th Floor County-City Building CITY CLERK,SOUTH BEND,IN South Bend, IN 46601 RE: Economic Development Revenue Bonds 2017 (Miami Hills Project) Dear President Scott: Attached for the Common Council's consideration is a Resolution supporting the issuance of bonds to fund improvements at Miami Hills located at 3534 High Street in South Bend. The issuance of these bonds, contingent upon a successful tax credit award, will fund the rehabilitation of 151 housing units as well as other external facilities and grounds. The Miami Hills development improvements will provide much needed upgrades to the housing of many low and moderate income individuals and families. Thank you for your consideration. The owner representative Robert Budman of BLVD. Capital will Skype for the committee meeting, while Consultant Anne Mannix and BVD Legal Counsel Tyler Kalachnik will be present. Additionally, I, along with the City's Bond Counsel Barnes& Thornburg will also be present. Since ly, _ r amela C. Mey Director, Neighborhood Engagement EXCELLENCE ACCOUNTABILITY INNOVATION 11 INCLUSION I EMPOWERMENT 14005 County-City Building 227W.Jefferson Bvld. South Bend,Indiana 46601 p574.235.9371 www.southbendin.gov C� A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,APPROVING AND AUTHORIZING CERTAIN ACTIONS AND PROCEEDINGS WITH RESPECT TO CERTAIN PROPOSED ECONOMIC DEVELOPMENT REVENUE BONDS AND RELATED MATTERS WHEREAS, the City of South Bend, Indiana (the "Issuer"), is authorized by IC 36-7- 11.9 and 12 (collectively, the "Act") to issue revenue bonds for the financing of economic development facilities, the funds from said financing to be used for the acquisition, construction, rehabilitation, improvement and equipping of said facilities, and said facilities to be either sold or leased to a company or directly owned by a company; and WHEREAS, BLVD Capital, LLC, a Delaware limited liability company, on behalf of itself or a to-be-formed Indiana limited partnership or limited liability company to be controlled by the same principals as BLVD Capital, LLC (the "Applicant"), has advised the South Bend Economic Development Commission (the "Commission") and the Issuer that it proposes that the Issuer lend proceeds of an economic development financing to the Applicant for the acquisition, construction, rehabilitation, improvement and equipping of a multifamily housing facility consisting of an apartment complex known as Miami Hills, containing approximately 151 apartment units, together with functionally related and subordinate facilities such as carports, garages and parking areas, located at 3534 High Street, in South Bend, Indiana (the "Project"); and WHEREAS, the diversification of industry and increase in or retention of job opportunities (approximately 66 new construction jobs created during the rehabilitation period) to be achieved by the acquisition, construction, rehabilitation, improvement and equipping of the Project will be of public benefit to the health, safety and general welfare of the Issuer and its citizens; and WHEREAS, it would appear that the financing of the Project would be of public benefit to the health, safety and general welfare of the Issuer and its citizens; and WHEREAS, it is tentatively found that, because of existing occupancy rates and the tenants that will be served by this development, the acquisition, construction, rehabilitation, improvement and equipping of the Project will not have an adverse competitive effect on any similar facility already constructed or operating in the City of South Bend, Indiana; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council of the City of South Bend, Indiana, finds, determines, ratifies and confirms that the promotion of diversification of economic development I\11958764.2 and job opportunities in and near the City of South Bend, Indiana, is desirable to preserve the health, safety and general welfare of the citizens of the Issuer; and that it is in the public interest that the Commission and the Issuer take such action as they lawfully may to encourage economic development, diversification of industry and promotion of job opportunities in and near the Issuer. SECTION II. The Common Council of the City of South Bend, Indiana, approves, determines, ratifies and confirms that the issuance and sale of economic development revenue bonds in an amount not to exceed $14,000,000 of the Issuer under the Act for the lending of the proceeds of the revenue bonds to the Applicant, for the acquisition, construction, rehabilitation, improvement and equipping of the Project will serve the public purposes referred to above, in accordance with the Act. SECTION III. In order to induce the Applicant to proceed with the acquisition, construction, rehabilitation, improvement and equipping of the Project, and subject to the further final approval of the Common Council of the City of South Bend, Indiana, the Common Council of the City of South Bend, Indiana, hereby approves, determines, ratifies and confirms that (i) it will take or cause to be taken such actions pursuant to the Act as may be required to implement the aforesaid financing, or as it may deem appropriate in pursuance thereof; and (ii) it will adopt such ordinances and resolutions and authorize the execution and delivery of such instruments and the taking of such action as may be necessary and advisable for the authorization, issuance and sale of said economic development revenue bonds; and that the aforementioned purposes comply with the provisions of the Act; and (iii) it will use its best efforts at the request of Applicant to authorize the issuance of additional bonds for refunding and refinancing the outstanding principal amount of the bonds, for completion of the Project and for additions to the Project, including the costs of issuance (providing that the financing of such addition or additions to the Project is found to have a public purpose at the time of authorization of such additional bonds), and that the aforementioned purposes comply with the provisions of the Act; provided that all of the foregoing shall be mutually acceptable to the Issuer and the Applicant. SECTION IV. All costs of the Project incurred after the date permitted by applicable federal tax and state laws, including reimbursement or repayment to the Applicant of moneys expended by the Applicant for planning, engineering, a portion of the interest paid during acquisition, construction, rehabilitation, improvement and equipping, underwriting expenses, attorney and bond counsel fees, acquisition, construction, rehabilitation, improvement and equipping of the Project will be permitted to be included as part of the bond issue to finance the Project, and the Issuer will lend the proceeds from the sale of the bonds to the Applicant for the same purposes. Also, certain indirect expenses, including but not limited to, planning, architectural work and engineering incurred prior to this inducement resolution will be permitted to be included as part of the bond issue to finance the Project. SECTION V. This resolution shall constitute "official action" for purposes of compliance with federal and state laws requiring governmental action as authorization for future reimbursement from the proceeds of bonds, particularly Treas. Reg. 1.150-2. I\11958764.2 SECTION VI. The economic development revenue bonds described herein shall be limited, special obligations payable solely from the funds provided therefor as described in the indenture authorizing said bonds and shall not constitute an indebtedness of the City or a loan of the credit thereof within the meaning of any constitutional or statutory provisions. The City is no way responsible for any payment obligation created by said bonds. This resolution does not constitute a binding obligation of the City to issue economic development revenue bonds, but instead, is a commitment by the City to proceed with negotiations for the financing described herein with the Applicant and is subject to the adoption of a bond ordinance by this Common Council in accordance with the provisions of the Act. SECTION VII. This resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Member of the Common Council ekESENTED Filed in C' ; "Ace NOT APPROVED JUN 212017 ADOPTED KARE.;: _E-R I\11958764.2 CITYCLERi^', 's j3ENC,IN