HomeMy WebLinkAbout17-72 Authorizing the issuance of bonds for the Redevelopment Districts �SiJB� CITY OF SOUTH BEND
O PETE BUTTIGIEG, MAYOR
1865
October 17, 2017 Filed in Olerk'S Office
Mr.Tim Scott,President
South Bend Common Council OCT 2 7
4th Floor County-City Building
South Bend IN 46601 KAREEMAH FOWLER
CITY CLERK,SOUTM l��ND, IN
RE: My SB Parks&Trails Redevelopment Bond
Dear President Scott,
Attached is A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA,APPROVING AND AUTHORIZING THE ISSUANCE OF BONDS OF THE CITY OF
SOUTH BEND REDEVELOPMENT DISTRICT AND RELATED MATTER.
The My SB Parks&Trails initiative seeks to leverage over$12 million worth of private funds and grants
to make a transfoimative impact throughout the city's shared green spaces. The entire portfolio of
projects includes parks improvements to 32 parks and dozens of miles of trails,throughout every
neighborhood in the city, benefiting six focus areas: neighborhood improvement,public safety, social
equity, ecological stewardship,public health, and economic impact. Every defined project has been
established through a substantial amount of resident engagement, including dozens of community forums,
hundreds of hours of stakeholder&neighborhood sessions, and thousands of pieces of written feedback.
These are all documented through City Plan 2025,Parks&Recreation Master Plan 2014,Riverfront
Parks&Trails Conceptual Framework, City Cemetery Master Plan,Coal Line Trail Plan,and various
neighborhood plans. The projects have been additionally informed by a substantial amount of
professional consultation, industry benchmarks,and certified research. When complete,the My SB Parks
&Trails investments will fundamentally change the landscape of South Bend to benefit every resident for
many generations to come.
This resolution approves of the issuance of Redevelopment District Bonds in a principal amount not to
exceed $12,200,000 to fund improvements to Pulaski,Leeper,Howard, and Seitz Parks as well as repairs
and improvements to the mixed use Riverfront Trail throughout the River West TIF District. The bonds
would be payable from TIF Revenues from the River West Development Area Allocation Area and also
backed up by a tax levy(to be used only if TIF Revenues were ever insufficient)to secure a better bond
rating and lower interest rates which will result in a lower cost of borrowing. The Redevelopment District
bonds are proposed to be issued in early 2018.
Thank you for your consideration. We will attend the Committee and Council meeting along with
representatives from Barnes&Thornburg&Umbaugh to address any questions.
Cordially,
Aaron Perri James Mueller
Executive Director Executive Director
Venues Parks&Arts Community Investment
EXCELLENCE ( ,ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT I
RESOLUTION NO.
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, APPROVING AND AUTHORIZING THE ISSUANCE OF BONDS OF
THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT AND RELATED
MATTERS
WHEREAS, the South Bend Redevelopment Commission (the "Commission"), the
governing body of the South Bend Department of Redevelopment and the Redevelopment
District of the City of South Bend, Indiana (the "District"), exists and operates under the
provisions of Indiana Code 36-7-14, as amended from time to time(the"Act"); and
WHEREAS, with the approval of the Common Council (the "Common Council") of the
City of South Bend, Indiana (the "City"), the Commission has previously created, amended and
expanded an economic development area within the City currently designated as the River West
Development Area (the "Area"), designated the Area as an allocation area (the "Allocation
Area") under the Act and adopted an Economic Development Plan (as amended from time to
time,the"Plan"),which sets forth various economic development projects for the Area; and
WHEREAS, the Act authorizes the Commission to approve of the issuance of bonds of
the District, in the name of the City, in anticipation of revenues of the District and to use the
proceeds of such bonds to finance local public improvements located in or serving the Area, all
subject to approval of the Common Council pursuant to Section 25.1 of the Act; and
WHEREAS, the Commission has adopted Resolution No. 3415 at a meeting held on
October 12, 2017, contemplating the issuance of bonds of the District in one (1)'or more series
and in an aggregate principal amount not to exceed Twelve Million Two Hundred Thousand
Dollars ($12,200,000) (the "Bonds") for the purpose of financing the cost of certain local public
improvements in or serving the Area, including without limitation (i) renovations and upgrades
at Pulaski, Leeper and Seitz Parks and improvements to the mixed use riverfront trail; (ii) other
infrastructure improvements to park and recreation areas in or serving the Area, all of which will
enhance the cultural attractiveness of the Area and the City; and (iii) any and all improvements
related to any of the improvements described in clauses (i) or (ii) (clauses (i) through and
including (iii), collectively, the "Projects") and to pay related and incidental expenses to be
incurred in connection therewith and on account of the issuance of the Bonds; and
WHEREAS,the Commission has determined that sufficient funds will be available to the
Commission to make the payments of the principal of and interest on the Bonds with such funds
being derived from tax increment revenues collected in the Allocation Area (the "TIF
Revenues"); however, if such funds, including the TIF Revenues, are insufficient for such
purpose,the Commission will levy a special tax upon the taxable property of the District, which
is coterminous with the boundaries of the City, pursuant to Section 27 of the Act (the "Special
Tax"); and
WHEREAS, Section 25.1 of the Act requires the approval of the legislative body of the
City before the Bonds may be issued and the Common Council as the legislative body of the City
now desires to approve of the issuance of the Bonds;
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
South Bend, Indiana, as follows:
SECTION I. The Common Council hereby approves of the issuance of the Bonds, in one
or more series, in an aggregate principal amount not to exceed Twelve Million Two Hundred
Thousand Dollars ($12,200,000), to provide for the Projects and to pay all incidental expenses
incurred in connection therewith, including the costs of issuance of the Bonds.
SECTION II. The interest rate on the Bonds shall not exceed five percent (5.00%) per
annum. A portion of the Bond proceeds may be applied to to fund a reserve fund for the Bonds
if determined to be necessary or appropriate by the Controller of the City with the advice the
Commission's financial advisor. The final maturity date of the Bonds shall not be later than
February 1, 2033. The Bonds may be subject to redemption prior to maturity on terms
determined by the President of the Commission prior to the sale of the Bonds, with the advice of
the Commission's financial advisor, provided that the Bonds may be subject to optional
redemption not earlier than August 1, 2026.
SECTION III. The proper officers of the City are hereby authorized and directed, for
and on behalf of the City, to execute and deliver any contract, agreement, certificate, instrument
or other document and to take any action as such person determines to be necessary or
appropriate to accomplish the purposes of this Resolution, such determination to be conclusively
evidenced by such person's execution of such contract, agreement, certificate, instrument or
other document or such person's taking of such action.
SECTION IV. This Resolution shall be in full force and effect from and after its passage
by the Common Council and approval by the Mayor as required by law.
Member of the Common Council
i
DMS 10999608 OU 8 2017
PRESENTED
NOT APPROVED 2
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