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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, Zo 11 Z~ 11 City Clerk ~esident of Common Council City Clerk Approved and signed by me January 26 Zp11 '~~/ ~ /G`"~r~/ ~ Mme,' 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: ity Cle 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. ;, Deputy ity Clerk Approved and signed by me on the ~ D o'clock. m. ~~ 1st R~AD9~IG ~~ t,0~ RJG~L!C HE,'OF,I~G ~-Z~-- 11 _~:-:~D ~~' day of c~ , 2011, at ~. Mayor, City of S Bend, Indiana `~1,,1,~ - r C~It ~-- ' 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, ~ ~'~ 3~t~~~ \\ Gregg D. Zientara ~1~~ City Controller cc: Stephen J. Luecke, Mayor of the City of South Bend t ~ .. t .. :L `+.'s`If~~ J~1!~! - 5 ZOII c~~r,:w~ ~~.~. 5~:i~"~. ire.