HomeMy WebLinkAboutNo. 1823 pledging tax increment finance revenues for the payment, if necessary, of principal of/interest on a loan from the environmental remediation revolving loan fund administered by Indiana Dev. Finance Authoritye �
RESOLUTION NO. 1823
RESOLUTION OF THE REDEVELOPMENT COMMISSION OF THE
CITY OF SOUTH BEND, INDIANA, PLEDGING TAX INCREMENT
FINANCE REVENUES FOR THE PAYMENT, IF NECESSARY, OF THE
PRINCIPAL OF AND INTEREST ON A LOAN FROM THE
ENVIRONMENTAL REMEDIATION REVOLVING LOAN FUND
ADMINISTERED BY THE INDIANA DEVELOPMENT FINANCE
AUTHORITY
WHEREAS, the South Bend Redevelopment Commission (the "Commission ") has
adopted various resolutions declaring a certain area located within the South Bend Redevelopment
District (the "Redevelopment District ") and known as the "Airport Economic Development Area"
as an economic development area and designated such area as an allocation area (the "Area ") within
the meaning of Indiana Code 36 -7 -14, as amended (the "Act "), for purposes of tax increment finance
which Area now includes certain property (the "Property") occupied by Robert Bosch Corporation
('Bosch ") and owned by the City of South Bend, Indiana (the "City ") pursuant to an Agreement for
the Use and Rehabilitation of Real Property between Bosch and the City dated as of August 17, 2000
(the "Agreement "); and
WHEREAS, the State of Indiana ( "State ") has established the Environmental
Remediation Revolving Loan Program (the "Program ") pursuant to Indiana Code 13 -19 -5, as
amended (the "Program Act "), for the purpose of providing funding from the Environmental
Remediation Loan Fund (the "Fund ") administered by the Indiana Development Finance Authority
( "IDFA ") for the assessment and remediation of "brownfield sites" located throughout the State; and
WHEREAS, the pursuant to Section 9 of the Agreement, (i) the City has represented
that it is eligible to borrow up to $1,300,000 from IDFA (the "Loan") through the Program and that
it will use its best efforts to borrow such amount and, in turn, loan it to Bosch for purposes of
remediating environmental conditions at, on, under or emanating from the Property, including, but
not limited to, demolition, asbestos and lead paint removal, and environmental testing and
assessment of the Property (the "Program Improvements ") and (ii) Bosch has agreed to repay such
loan in accordance with the repayment schedule set forth in the Agreement subject to certain
forgiveness provisions set forth in the Agreement as permitted by the Program Act; and
WHEREAS, in addition to the promise of Bosch to repay the Loan, IDFA requires
further assurance of the City to repay the Loan from funds available to the City in the unlikely event
that Bosch does not make repayments as provided in the Agreement; and
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WHEREAS, the Improvements constitute "local public improvements" as such term
is defined in the Act; and
WHEREAS, the Commission desires to adopt this resolution pledging "available tax
increment revenues" which may be generated from within the Area to repay the Loan in the event
that Bosch does not make such repayment, with "available tax increment revenues" having such
meaning as set forth herein;
NOW, THEREFORE, BE IT RESOLVED by the RedevelopmentCommissionofthe
City of South Bend, Indiana, as follows:
1. In order to satisfy IDFA's requirement that the City provide additional
assurance that it has funds available to repay the Loan in the unlikely event that Bosch does not
make repayments as provided in the Agreement, the Commission hereby pledges available tax
increment revenues generated from within the Area to such repayment if necessary. "Available tax
increment revenues," as used herein, shall mean those tax increment revenues remaining and
available for use by the Commission on an annual basis after sufficient tax increment revenues have
been set aside or otherwise reserved to pay those lease rentals due in any such year to the South Bend
Redevelopment Authority (the "Authority ") pursuant to certain leases between the Commission and
the Authority which serve as the security upon which the Authority has issued its lease rental
revenue bonds to provide funds for local public improvements in the Area.
2. The President and the Secretary are hereby authorized to execute such
documents as may be necessary to evidence such pledge of available tax increment revenues. The
Mayor is authorized to execute and the Clerk of the City is authorized to attest, if necessary, such
documents as may be necessary to evidence such pledge.
3. 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 available tax increment revenues contained herein with respect to the Loan.
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Adopted at a meeting of the South Bend RedevelopmentCommission held on January
2001, at Room 1308, County -City Building, 227 West Jefferson Boulevard, South Bend,
Indiana, 46601.
SOUTH BEND REDEVELOPMENT COMMISSION
By:
President
ATTEST:
Adva-, <F4U)4Z.
%b0i Secretary U
I
Off
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