HomeMy WebLinkAbout10071-11 Appropriation- $995,423 within Professional SportsORDINANCE No.
Passed by the Common Council of the City of South Bend, Indiana
January 24,
Attest:
Attest:
Presented by me to the Mayor of the City of South Bend, Indiana
January 25,
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City Clerk
~esident of Common Council
City Clerk
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ORDINANCE NO. L ~ ~ ~ ~ ~ ~'
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, APPROPRIATING $995,423 WITHIN PROFESSIONAL SPORTS
DEVELOPMENT FUND (#377).
STATEMENT OF PURPOSE AND INTENT
On October 25, 2010, the South Bend Common Council enacted Ordinance No.
10045-10 constituting the City of South Bend's budget appropriation for 2011. At that
time, the status was uncertain of the College Football Hall of Fame located in downtown
South Bend. Accordingly, South Bend's 2011 budget as enacted on October 25, 2010 did
not include appropriations for the College Football Hall of Fame.
At. this time, it is agreed that the College Football Hall of Fame will remain open
and operational through all or most of the calendar year 2011. Consequently, the City
has certain financial obligations relating to the College Football Hall of Fame pursuant to
agreements with The National Football Foundation and College Football Hall of Fame,
Inc. This ordinance appropriates monies necessary for South Bend to meet its financial
obligations under these agreements.
In addition, on November 30, 2010, the South Bend Common Council enacted
Ordinance No. 10057-10 approving the Coveleski Stadium Taxable Revenue Bonds of
2010 and pledging the use of Professional Sports Development (PSDA) revenue for
repayment of principal and interest on these bonds. The debt service amount due for
2011 is $395,423 and this amount was not included in the 2011 budget that was adopted
on October 25, 2010.
NOV~I, THEREFORE, BE IT ORDAINED by the Common Council of the City of
South Bend, Indiana, as follows:
Section I. The sum of $500,000 is appropriated and set aside within Professional
Sports Fund (#377) to meet South Bend's minimum public funding obligation for the
College Football Hall of Fame pursuant to the terms of agreements with The National
Football Foundation and College Football Hall of Fame, Inc. This appropriation shall be
made on a pro rata or incremental monthly basis for as long as the College Football Hall
of Fame remains open and operational during calendar year 2011.
Section II. The sum of $100,000 is appropriated within Professional Sports
Developrrient Fund (#377) and transferred to Century Center Fund 670 for funding
capital improvements.
Section III. The sum of $395,423 is appropriated and set aside within
Professional Sports Development Fund (#377) for the initial debt service payment due on
July 15, 2011 on the 2010 Coveleski Stadium Taxable Revenue Bonds.
Section IV. This Ordinance shall be in full force and effect from and after its
passage by the Common Council and approval by the Mayor.
Mem er of the Common Council
Attest:
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Presented by me to the Mayor of the City of South Bend, Indiana, on the
Z~a'1- day of ~~r< , 2011, at 1 '~3~ o'clock L . m.
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Deputy ity Clerk
Approved and signed by me on the
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RJG~L!C HE,'OF,I~G ~-Z~-- 11
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Mayor, City of S Bend, Indiana
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CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
DEPARTMENT OF ADMINISTRATION & FINANCE
GREGG D. ZIENTARA
CONTROLLER
January 5, 2011
Mr. Derek Dieter
President, South Bend Common Council
4th Floor, County-City Building
South Bend, IN 46601
RE: Professional Sports Development Fund - 2011 Appropriation Ordinance
Dear President Dieter:
As you know, the 2011 budget passed by the South Bend Common Council on October 25, 2010 did not
include an appropriation in the Professional Sports Development Fund No. 377 ("PSDA Fund"). As more
information is now known concerning the status of the College Football Hall of Fame for 2011, and with
the recent Common Council approval of Coveleski Stadium Revenue bonds with repayment from PSDA
revenue, it is now appropriate to establish the PSDA Fund budget for 2011.
The proposed 2011 PSDA Fund budget consists of the following expenditures:
• $500,000 payment to the College Football Hall of Fame for operating expenses. This transfer is
funded by apass-through of hotel/motel tax monies received from St. Joseph County in the
amount of $494,325 and accumulated interest in the PSDA Fund in the amount of $5,675. The
amounts of hotel/motel taxes paid to the College Football Hall of Fame were $530,137 in 2009
and $521,800 in 2010. The payments to the College Football Hall of Fame will be made on a pro
rata, monthly basis while the facility remains open and in operation.
• $100,000 transfer to the Century Center capital account for capital expenses. This amount is
consistent with prior years and is scheduled to be transferred in June, 2011. These funds are
maintained in a separate Century Center capital bank account and all capital expenditures are
approved by the President of the Century Center Board of Managers and the City Controller. The
2011 capital budget for Century Center in the amount of $267,000 was approved by the
Common Council on October 25, 2010.
$395,423 payment for the initial debt service payment due on July 15, 2011 for the 2010
Coveleski Stadium Taxable Revenue Bonds that were approved by the Common Council on
November 30, 2010. When the Coveleski Bond ordinance was approved, it was stated that
PSDA revenue would be the funding source for repayment of the bonds and a cash projection
was prepared demonstrating that sufficient funds would be available in the PSDA Fund to meet
all debt service obligations. The final bond payment is due on January 15, 2019.
The total proposed PSDA Fund budget for 2011 is $995,423.00
County-City Building 227 West Jefferson Boulevard South Bend, Indiana 46601-1830 0'~.
Phone: 574/235-9216 Fax: 574/235-9928 TDD:574/235-5567 ~~
will present this Bill to the Common Council at the appropriate Council Committee meeting, public
hearing and at the Council meeting. I am available to discuss any matters concerning this Bill at the
convenience of the Council.
Sincerely,
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Gregg D. Zientara ~1~~
City Controller
cc: Stephen J. Luecke, Mayor of the City of South Bend
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