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HomeMy WebLinkAbout10056-10 Revenue Bond- Create Coveleski Staduim Recovery Zone Economic Development Bond Construction Fund # 483ORDINANCE No. .G,~ Passed by the Common Council of the City of South Bend, Indiana November 22, 20 10 Attest: JOHN Attest: Presented by me to the Mayor of the City of Sorrtlr Bend, Indiana November 23, 20 10 City Clerk President of Common Council City Clerk Approved and signed by me November 2 3 . ZO 10 "~`~ /I ~`,~.`-c~'c~ Mir ORDINANCE NO. ~ ~ ~ ~ ~ +~ ~ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, TO CREATE A COVELESKI STADIUM RECOVERY ZONE ECONOMIC DEVELOPMENT BOND CONSTRUCTION FUND (#438) STATEMENT OF PURPOSE AND INTENT The City of South Bend Redevelopment Commission is financing certain capital improvement projects at Stanley Coveleski Regional Stadium out of bond obligations. Bond covenants and proper accounting principles require that these bond proceeds be deposited into a separate fund to be used to pay bond issuance costs, debt service reserves and project expenditures. To accomplish this, it is in the best interest of the City to establish a new Coveleski Stadium Recovery Zone Economic Development Bond Construction Fund (#438), which shall be anon-reverting fund. The funding for this construction fund will be from the bond proceeds in the amount of $4.98 million dollars. The new Fund 438 will earn interest on cash balances and will be subject to appropriation by the City of South Bend Redevelopment Commission. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA as follows: SECTION I A Coveleski Stadium Recovery Zone Economic Development Bond Construction Fund (#438) is created as the repository for the City's bond proceeds and will be used to pay bond issuance costs, debt service reserves and project expenditures. This Fund shall be non-reverting and shall be funded and operated in accordance with all legal and specific bond ordinance requirements. SECTION II. 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 Attes . ity : erk Presented by me to the Mayor of the City of South Bend, Indiana on the L3~ day of ~~•~ , 2 ~~ , at 3`-ES' o'clock~.m. C.e.~'~-l Cr~t~ City Clerk rd Ue-vz,--~ C~ D i ~ A proved and signed by me on the z.3 day of 1 , 2 , at _~o'clock, .m. ~~-,- Mayor, City of ~ uth end, Indiana p_ 1st RE,QDi~~lG ~' ~-a l PUG[.fC f-1L•~~21NG l ~-~-L-~'~ 3 rd f:El~;~I~~G L~ LL-~_~ taOT ~,PP~;OVED RE!"E^RED PASSED ~\-.LZ-~~ ice: ~,~ r _ .~ ~~..; ;' L~~ v TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 72-10 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, TO CREATE A COVELESKI STADIUM RECOVERY ZONE ECONOMIC DEVELOPMENT BOND CONSTRUCTION FUND (#438) Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Ann Puzzello Chairperson, Committee of the Whole COUNTY-CITY BUILDING 227 W.JEFFERSON BOULEVARD SOUTH BEND, IN 46601 ~. PEACE i- _ __\~ CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR OFFICE OF ADMINISTRATION & FINANCE GREGG D. ZIENTARA, CITY CONTROLLER November 3, 2010 Mr. Derek D. Dieter President of the Common Council of the City of South Bend 4th Floor, County-City Building South Bend, IN 46601 PHONE 574-235-9216 FAx 574-235-9928 re: Ordinance of the Common Council Creating Two (2) New Funds in Conjunction with the Coveleski Stadium Project and the Redevelopment Commission Recovery Zone Bond Issue Dear Council President Dieter: The City of South Bend Redevelopment Commission is financing certain capital improvement projects at Stanley Coveleski Regional Stadium out of bond obligations. Bond covenants and proper accounting principles require that these bond proceeds be deposited into a separate fund to be used to pay bond issuance costs, debt service reserves and project expenditures. To accomplish this, it is in the best interest of the City to establish a new Coveleski Stadium Recovery Zone Economic Development Bond Construction Fund (#438), which shall be anon-reverting fund. The funding for this construction fund will be from the bond proceeds in the amount of $4.98 million dollars. The new Fund 438 will earn interest on cash balances and will be subject to appropriation by the City of South Bend Redevelopment Commission. The City of South Bend Redevelopment Commission is financing certain capital improvement projects at Stanley Coveleski Regional Stadium out of bond obligations. These bond obligations require protection of bondholders through debt service reserves which the City previously handled through policies of insurance that are no longer of the credit quality required of such policies. To meet the bond debt service reserve requirements, the City must have an estimated sum of Four hundred Eighty Thousand ($480,000) set aside in a separate fund at the time of closing. To accomplish this, it is in the best interest of the City to establish a new Coveleski Stadium Recovery Zone Economic Development Bond Debt Service Reserve Fund (#317), which shall be anon-reverting fund. The funding for the debt service reserve amount will be from the bond proceeds of $4.98 million dollars. The new Fund 317 will earn interest on cash balances and will be subject to appropriation by the City of South Bend Redevelopment Commission. Controller Gregg Zientara will present this bill to the Common Council at the Council assigned committee meeting and at the public hearing. City Administration requests Common Council for a favorable consider ion and passage of this bill. ubmitted, Gregg cc: Stephen J. Luecke, Mayor of the City of South Bend, ~,. __.._.._._.d--- _, . r~ r° ~~~~`~''