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HomeMy WebLinkAbout6B(7) Resoluiton No. 2798�e 6 (1 RESOLUTION NO. 2798 A PRELIMINARY BOND RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF SOUTH BEND, INDIANA, REDEVELOPMENT DISTRICT REVENUE DISTRICT BONDS WHEREAS, the South Bend Redevelopment Commission (the "Commission "), governing body of the Department of Redevelopment (the 'Department ") of the City of South Bend, Indiana (the "City ") and the Redevelopment District of the City (the "Redevelopment District "), exists and operates under the provisions of the Redevelopment of Cities and Towns Act of 1953 which has been codified in I.C. 36 -7 -14 et seq., as amended from time to time (the "Act "); and WHEREAS, the Commission has previously designated and declared an area in the City known as the Central Development Area to be a redevelopment area and an allocation area pursuant to the Act for purposes of tax increment finance which area has been amended from time to time (the "Area "), and the Commission has previously adopted a redevelopment plan for the Area which has been amended from time to time; and WHEREAS; the City has previously designated a Professional Sports and Convention Development Area pursuant to I.C. 36 -7 -31.3 in an area of the City to include that portion of the City where Coveleski Stadium is located for the purpose of capturing "covered taxes" as such term is defined by I.C. 36 -7- 31.3 -4 (the " PSCDA Revenues "); and WHEREAS, the Commission finds that in order to undertake certain local public improvements in the Area, such local public improvements to include certain improvements to Coveleski Stadium which is owned by the City (collectively, the "Project "), it will be necessary and in the best interest of the Redevelopment District and the property and inhabitants thereof to issue special revenue bonds of the Redevelopment District (the "Bonds ") in an aggregate principal amount not to exceed Four Million Nine Hundred Sixty -five Thousand and 00 /100 Dollars ($4,965,000.00) which shall be payable from the PSCDA Revenues and, to the extent that such revenues are ever insufficient to make debt service payments on the Bonds, from County Option Income Tax Revenues ( "COIT Revenues ") expected to be pledged by the Common Council of the City (the "Common Council ") on a parity with other obligations payable from the COIT Revenues; and WHEREAS, the American Recovery and Reinvestment Act of 2009 (the "Stimulus Act ") added Sections 1400U -1 through and including 140OU -3 to the Internal Revenue Code of 1986, as amended (the "Code "), which authorized local governments to designate and issue Recovery Zone Economic Development Bonds pursuant to volume cap allocated among the various states and counties and large municipalities within the states based upon relative declines in unemployment in 2008 to finance certain capital expenditures paid or incurred with respect to property located in a designated recovery zone and certain other expenditures BDDB01 6397179v 1 identified in Section 140OU -2 of the Code (each of such expenditures being referred to herein as a "Qualified Economic Development Purpose "); and WHEREAS, the City received an allocation for recovery zone economic development bonds of Four Million Nine Hundred Eighty -three Thousand and 00 /100 Dollars ($4,983,000) (the "Volume Cap "); and WHEREAS, the Common Council adopted Resolution No. 4019 -10 on March 22, 2010, designating the entire geographic area of the City as a Recovery Zone for purposes of Section 1400U -1(b) of the Code, which would include the Area; and WHEREAS, the Project qualifies as a Qualified Economic Development Purpose; and WHEREAS, issuance of the Bonds as Recovery Zone Economic Development Bonds will permit the District to receive a credit from the United States Treasury in an amount equal to 45% of the stated interest to be paid on such Bonds as provided by Sections 140OU -2 and 6431 of the Code; and WHEREAS, the Commission desires to hold a public hearing regarding the appropriation of the proceeds of the Bonds; and WHEREAS, the Commission desires to establish its intent, pursuant to I.C. 5 -1- 14-6(b) and § 1.150 -2 of the Treasury Regulations that preliminary costs of the Project which may be incurred prior to the issuance of the Bonds be reimbursed from the proceeds of the Bonds; NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: 1. For the purpose of raising money to pay the cost of the redevelopment and economic development in or serving the Area, including without limitation the Project, together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the redevelopment and economic development in or serving the Area, including the total cost of all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount, and supervisory expenses, capitalized interest and a debt service reserve for the Bonds (to the extent that the Commission determines that capitalized interest and/or a reserve is reasonably required), together with the expenses in connection with the issuance of Bonds therefor, the City, acting for and on behalf of the Commission, shall provide for the issuance of Bonds in an aggregate principal amount not to exceed Four Million Nine Hundred Sixty -five Thousand and 00 /100 Dollars ($4,965,000.00). The Bonds shall be issued on a taxable basis as Recovery Zone Economic Development Bonds In order to procure funds, the Controller of the City is hereby authorized and directed to have prepared and to issue and sell the negotiable bonds of the Redevelopment District the principal of and interest on which shall payable from the PSCDA Revenues, and to the extent the PSCDA Revenues are not sufficient therefor, the COIT Revenues, which bonds -2- BDDB01 6397179v] shall be issued in the name of the City, for and on behalf of the Redevelopment District, with a discount for each series of bonds not to exceed the discount set forth in or determined by the Final Bond Resolution to be adopted by the Commission, together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the redevelopment, economic development and bond issuance, including the total cost of all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount and supervisory expenses, capitalized interest, and any debt service reserve, which estimated cost of the redevelopment, economic development and such expenses to be financed from proceeds of the Bonds shall not exceed Four Million Nine Hundred Sixty -five Thousand and 00 /100 Dollars ($4,965,000.00), plus investment earnings thereon. The Bonds shall not constitute a corporate obligation or indebtedness of the City but shall constitute an obligation of the Redevelopment District. The Bonds, together with interest thereon, shall be payable out of the PSCDA Revenues and, if the PSCDA Revenues is not sufficient, the COIT Revenues. The Bonds shall bear interest at a rate or rates not exceeding eight percent (8.0 %). The Bonds shall mature and be payable not later than twenty (20) years from the date of issuance of the Bonds. The Bonds may be subject to redemption prior to maturity in whole or in part in accordance with the terms set out in the Final Bond Resolution of the Commission. 2. The Secretary of the Commission is hereby directed as required by law to cause to be published the notice of hearing on the appropriation of the Bond proceeds as required by I.C. 6- 1.1 -18 -5 and I.C. 5 -3 -1, which hearing shall be conducted at the regular meeting of the Commission scheduled to be held on November 19, 2010, at 10:00 a.m. in Room 1308 in the County -City Building located at 227 West Jefferson Boulevard, South Bend, Indiana. 3. The Commission hereby establishes its intent, pursuant to I.C. 5- 1- 4 -6(b) and § 1.150 -2 of the Treasury Regulations, that preliminary costs incurred by or on behalf of the Commission in financing and completing the Project be reimbursed from the proceeds of the Bonds. 4. The President and Secretary of the Commission shall certify a copy of this Resolution to the Controller of the City. 5. This Resolution shall be in full force and effect after its adoption by the Commission. -3- BDDBOI 6397179v1 ADOPTED at a meeting of the South Bend Redevelopment Commission meeting held on November 2, 2010, at Room 1308, County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana. SOUTH BEND REDEVELOPMENT COMMISSION By: Marcia I. Jones, President ATTEST: David Varner, Secretary -4- BDDB01 6397179v 1