HomeMy WebLinkAboutNo. 2195 pledging certain tax increment revenues to repayment of a section 108 loan from U.S. department of housing and urban developmentRESOLUTION NO. ``'1 ) 9
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
COMMISSION PLEDGING CERTAIN TAX INCREMENT REVENUES
TO THE REPAYMENT OF A SECTION 108 LOAN FROM THE U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WHEREAS, the South Bend Redevelopment Commission (the "Commission "),
the governing body of the South Bend Department of Redevelopment (the "Department ") and the
South Bend Redevelopment District (the "Redevelopment District "), exists and operates under
Indiana Code 36 -7 -14, as amended from time to time (the "Act "); and
WHEREAS, the Commission has previously designated and declared an area in
Redevelopment District known as the Sample -Ewing Development Area to be a redevelopment
area and an allocation area (the "Area ") for purposes of tax increment financing and established
an allocation fund for said Area (the "Allocation Fund "), all pursuant to a resolution adopted by
the Commission on April 16, 1993, as amended and superceded by resolutions adopted thereafter
in accordance with the Act; and
WHEREAS, on October 13, 2000, the Commission pledged the tax increment
revenues generated in the Area and allocated to the Commission (the "Tax Increment Revenues ")
to the payment of a Section 108 Loan Guarantee provided by the Department of Housing and
Urban Development ( "HUD "), which pledge expires in 2011 (the "Prior Pledge "); and
WHEREAS, the City of South Bend, Indiana (the "City ") has submitted an.
application to HUD for another Section 108 Loan Guarantee (the "Section 108 Loan ") in the
amount of Eleven Million Nine Hundred Eighty Thousand Dollars ($11,980,000), the proceeds
of which are to be used for the acquisition, demolition, remediation and redevelopment of
property blighted structures and property located in the area commonly known as the
Studebaker /Oliver Project Area in the Area (the "Project "); and
WHEREAS, the Commission anticipates that sufficient Tax Increment Revenues
will be available to pay a portion of the principal of and interest on the Section 108 Loan and the
Prior Pledge; and
WHEREAS, the Commission desires to pledge such Tax Increment Revenues to
the City for its use in order to pay a portion of the principal of and interest on the Section 108
Loan; and
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WHEREAS, the Commission shall have no other obligation with respect to the
payment of principal of or interest on the Section 108 Loan other than the payment of the Tax
Increment Revenues which may be generated in the Area;
NOW, THEREFORE, BE IT RESOLVED, by the South Bend Redevelopment
Commission as follows:
1. The Commission hereby irrevocably pledges the Tax Increment Revenues
generated in the Area (being those Tax Increment Revenues available after the payment of all
indebtedness payable from such Tax Increment Revenues and such lease rentals the Commission
may determine from time to time to pay from such Tax Increment Revenues) to the City for its
use in order to pay the principal of and interest on the Section 108 Loan for a period up to but not
exceeding twenty-five (25) years from the date of the origination of the Section 108 Loan. Such
pledge shall terminate at the earliest of the final payment on the Section 108 Loan or the
conclusion of the twenty-five (25) year period.
2. There is hereby created and established within the Redevelopment District
Bond Fund, a Studebaker/Oliver Project Principal and Interest Account (the "Principal and
Interest Account").
3. Tax Increment Revenues received by the Commission and not otherwise
needed as set forth in Section I for the payment of indebtedness or lease rentals shall be
deposited into the Principal and Interest Account and appropriated for payment to the City for its
use in order to pay the principal of and interest on the Section 108 Loan. Tax Increment
Revenues received in any year in excess of the amount necessary to pay the principal of and
interest on the Section 108 Loan in said year do not remain pledged, may be transferred to any
other account permitted by law, and may be used by the Commission for any purpose set forth in
I.C. 36-7-14-39. Notwithstanding the foregoing, the pledge of the Tax Increment Revenues to
the Section 108 Loan described herein shall be junior and subordinate to the Prior Pledge as long
as the Prior Pledge remains in effect.
4. This Resolution shall be in full force and effect after its adoption by the
Commission and shall not be repealed or amended in any manner which would serve to
adversely affect the pledge of the Tax Increment Revenues contained herein.
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9 ADOPTED at a special meeting of the South Bend Redevelopment Commisslan
held on November 4, 2005, at 1308 County-City Building, 227 West Jefferson Boulevard, South
Bend, Indiana 46601.
11
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ATTEST:
Sic-rera-ry Gregory S. Downes.
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SOUTH BEND REDEVELOPMENT
COMMISSION
By: C'ke' L \Zz�
President MarciVI. Jones