HomeMy WebLinkAboutNo. 2826 appropriating TIF revenues from allocation area No. 3 fund for the payment of certain obligations/expenses related to the SSDA allocation area No. 3RESOLUTION NO. 2826
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM
ALLOCATION AREA NO.3 FUND FOR THE PAYMENT OF CERTAIN
OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH SIDE DEVELOPMENT
AREA ALLOCATION AREA NO.3
WHEREAS, the South Bend Redevelopment Commission (the "Commission "), the
governing body of the Department of Redevelopment of the City of South Bend, Indiana (the "City ")
and the City of South Bend, Indiana, Redevelopment District, exists and operates under the
provisions of Indiana Code § 36 -7 -14, as amended (the "Act "); and
WHEREAS, on November 1, 2002, the Commission adopted Resolution No. 1914 (the
"Declaratory Resolution ") declaring the South Side Development Area (the "Area ") to be an area
needing redevelopment within the meaning of the Act and designated the Area as the South Side
Development Area Allocation Area No. 1 ( "Allocation Area No. I") for purposes of tax increment
financing pursuant to the Act; and
WHEREAS, on November 19, 2002, the Area Plan Commission of St. Joseph County ( "Plan
Commission ") issued its written order approving the Declaratory Resolution by the adoption of Plan
Commission Resolution 142 -02, in accordance with Indiana Code § 36- 7- 14-16; and
WHEREAS, on November 25, 2002, the Common Council of the City approved the order of
the Plan Commission through the adoption of Common Council Resolution No. 3136 -02; and
WHEREAS, on December 20, 2002, the Commission held a duly noticed public hearing, in
accordance with Indiana Code § 36 -7 -14-17 and Indiana Code § 5 -3 -1; and
WHEREAS, following said hearing, the Commission adopted Resolution No. 1928
confirming the Declaratory Resolution; and
WHEREAS, on July 27, 2004, the Commission adopted Resolution 2073 amending the
Declaratory Resolution to create a separate allocation area ( "Allocation Area No. 2 ") within the Area
to allow for certain improvements to occur at the intersection of Ireland and Michigan Streets; and
WHEREAS, on September 13, 2004, the Commission adopted Resolution 2096 (i) amending
the Declaratory Resolution to create a separate allocation area ( "Allocation Area No. 3 ") within the
Area to allow for a certain redevelopment project located at or about the southeast corner of the
intersection of Ireland Road and Miami Street in the Area and (ii) creating a separate allocation area
fund ( "Allocation Area No. 3 Fund ") for the purpose accounting for the tax increment revenues
directly resulting from such improvements ( "Project Tax Increment Revenues "); and
WHEREAS, on September 13, 2004, the Commission adopted Resolution No. 2097 (the
"Pledge Resolution ") establishing the KSK- Scottsdale Mall, L.P. Project Principal and Interest
Account of the Allocation Area No. 3 Fund (the "Principal and Interest Account ") and pledging
Project Tax Increment Revenues for the payment of taxable economic development bonds originally
issued in an aggregate principal amount of Five Million Four Hundred Eight -five Thousand and
00 /100 Dollars ($5,485,000.00) (the "EDC Bonds ") to provide financing for the redevelopment of
Allocation Area No. 3; and
WHEREAS, the EDC Bonds were issued on April 19, 2005, at fixed interest rates ranging
from six and one -tenth percent (6.10 %) to six and three - quarters percent (6.75 %) with interest
payable on August 1, 2005, and on each February 1 and August 1 thereafter and maturing on
February 1 in the years 2021 and 2027 with mandatory sinking fund payments due on February 1 in
the years 2008 through and including 2027, a schedule of which debt service payments is as set forth
at Exhibit A; and
WHEREAS, the EDC Bonds are secured by a Trust Indenture dated April 1, 2005 (the
"Indenture ") between the City and Wells Fargo Bank, N.A., as Trustee (the "Trustee "); and
WHEREAS, the Pledge Resolution requires that all funds allocated to the Allocation Area
No. 3 Fund be immediately transferred into the Principal and Interest Account and on January 15 and
July 15 of each year all funds necessary to pay (i) the principal of and interest on the EDC Bonds
currently or scheduled to be due and expected to be paid from the Project Tax Increment Revenues
and (ii) to pay any amount of principal on the EDC Bonds which was not previously paid when due
or interest accruing thereon as a result of an insufficiency in Project Tax Increment Revenues in prior
year or years, be transferred from the Principal and Interest Account and /or the Allocation Area No.
3 Fund to the Trustee to be placed on deposit under the Indenture and only thereafter may excess
Project Tax Increment Revenues in the Principal and Interest Account and /or the Allocation Area
No. 3 Fund be transferred or used for any other purpose set forth in Section 39 of the Act; and
WHEREAS, the Commission desires to authorize all funds received by the Commission for
Allocation Area No. 3 Fund be transferred to the Principal and Interest Account; and
WHEREAS, the Commission further desires that all funds on deposit in the Principal and
Interest Account be appropriated for the debt service payments on the EDC Bonds, in accordance
with the Pledge Resolution and Indiana Code § 36- 7- 14- 39(b)(2)(A); and
WHEREAS, the proposed appropriations from Allocation Area No. 3 Fund or the Principal
and Interest Account are not for the operating expenses of the Commission; and
WHEREAS, such appropriations are subject to the provisions of Indiana Code § 6- 1.1 -18 -5;
and
WHEREAS, on January 14, 2011, the Commission adopted Resolution 2818 setting a public
hearing on said appropriations for 4:00 p.m. on February 8, 2011 and authorizing the Secretary of the
Commission to duly publish notice of said hearing; and
WHEREAS, the Secretary of the Commission has caused notice of said hearing on said
appropriations to be published in accordance with law; and
WHEREAS, such public hearing was held at the Commission's meeting at 4:00 p.m. on
February 8, 2011, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana
46601, at which all taxpayers and interested persons had an opportunity to appear and express their
views as to such additional appropriations; and
WHEREAS, the Commission now desires to approve said appropriations in a total amount
estimated not to exceed Five Hundred Thousand and 00 /100 Dollars ($500,000.00);
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT
COMMISSION AS FOLLOWS:
1. The Commission hereby finds that there are insufficient funds available or provided
for in the existing budget and tax levy which may be applied to debt service payments on the EDC
Bonds, in accordance with the Pledge Resolution and Indiana Code § 36- 7- 14- 39(b)(2)(A).
2. The Commission hereby appropriates that all funds in Allocation Area No. 3 Fund
and /or the Principal and Interest Account for the debt service payments on the EDC Bonds, in
accordance with the Pledge Resolution and Indiana Code § 36- 7- 14- 39(b)(2)(A), which amount is
not expected to exceed the amount owed on the Bonds and required to be deposited with the Trustee
under the Pledge Resolution and the Indenture and which amount is not anticipated to Five Hundred
Thousand and 00 /100 Dollars ($500,000.00) this year.
3. Such appropriations shall be in addition to all the appropriations provided for in the
existing budget and levy and shall continue in effect until the completion of the activities described
herein. Any surplus of such proceeds shall be credited to the proper fund as provided by law.
4. The President and /or the Secretary of the Commission are hereby authorized and
directed to certify a copy of this Resolution together with such other proceedings and actions as may
be necessary to the St. Joseph County Auditor for certification to the Indiana Department of Local
Government Finance for the purpose of obtaining its approval of the appropriations herein made.
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ADOPTED at a regular meeting of the South Bend Redevelopment Commission held on
February 8, 2011 at 1308 County -City Building, 227 W. Jefferson Boulevard, South Bend, Indiana
46601.
ATTEST:
Signature
Nancy N. King, Secretary
Printed Name and Title
SOUTH BEND REDEVELOPMENT
O MISSION
Signature
Marcia I. Jo Lpresiclent
Printed Name and Title
EXHIBIT A
SOUTH SIDE DEVELOPMENT AREA #3 (VILLAGE) - FUND 432
k; 2011 BUDGET SUMMARY
Debt Service:
Debt Service Reserve Increase
Debt Service Payments
Total Debt Service
Infrastructure Projects Underway, Not Completed
Total Infrastructure Underway, Not Completed
Other Activities:
Total Other Activities
Development Opportunities:
Total Development Opportunities
Infrastructure Planned:
(Could include the following projects)
Total Infrastructure Planned
Total Appropriation
a
2011
Aooroariation
0
500,000
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500,000