HomeMy WebLinkAboutNo. 1847 agreeing to consider the use of available TIF revenues for the pmt, if necessary, of principal/interest on certain loans evidenced by the issuance of the revenue bonds of the COSB (Robert Bosch retention project)A
RESOLUTION NO. ) 16'+'l
RESOLUTION OF THE REDEVELOPMENT COMMISSION OF THE
CITY OF SOUTH BEND, INDIANA, AGREEING TO CONSIDER THE
USE OF AVAILABLE TAX INCREMENT FINANCE REVENUES FOR
THE PAYMENT, IF NECESSARY, OF THE PRINCIPAL OF AND
INTEREST ON CERTAIN LOANS TO BE EVIDENCED BY THE
ISSUANCE OF THE REVENUE BONDS OF THE CITY OF SOUTH
BEND, INDIANA
(ROBERT BOSCH RETENTION PROJECT)
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 City has determined to borrow certain sums from loan programs
administered by the Business Development Corporation of South Bend, Mishawaka, St. Joseph
County, Indiana ( "BDC "), the Industrial Revolving Fund of South Bend, Indiana and The Industrial
Development Fund of the State of Indiana ( "IDLF "), respectively (collectively, the "Loans ") and to
issue its revenue bonds to evidence the Loans; and
WHEREAS, the BDC loan shall be in the principal amount not to exceed Five
Hundred Ten Thousand Dollars ($510,000) for a term of twenty (20) years and shall bear interest at
a rate not to exceed four percent (4 %); and
WHEREAS, the IRF loan shall be in the principal amount not to exceed Five
�'r+� Hundred Ten Thousand Dollars ($510,000) for a term of twenty (20) years and shall bear interest at
a rate not to exceed four percent (4 %); and
WHEREAS, the IDLF loan shall be in the principal amount not to exceed One
Million Dollars ($1,000,000) for a term of fifteen (15) years and shall bear interest at a rate not to
exceed three percent (3 %); and
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WHEREAS, the City proposes to use the proceeds from the Loans in order to fund
certain rehabilitative improvements to the Property in accordance with the Agreement (the
"Improvements "); and
WHEREAS, the Loans will be secured by mortgages on the Property in favor of the
BDC, IRF and IDLF, respectively, as well as the revenues payable by Bosch to the City pursuant to
the terms of the Agreement (the 'Bosch Funds "); and
WHEREAS, the Improvements constitute "local public improvements" as such term
is defined in the Act; and
WHEREAS, the Commission desires to adopt this resolution to evidence its
agreement to consider the use of tax increment revenues ( "TIF Revenues ") which may be generated
from within the Area to repay the Loans in the event that the Bosch Funds are insufficient for such
purpose and provided that the Commission has sufficient TIF Revenues which are not otherwise
needed to fund permitted uses of TIF Revenues;
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Commission ofthe
City of South Bend, Indiana, as follows:
1. The Commission hereby agrees to consider the use of available TIF Revenues
generated from within the Area to the repayment of the Loans in the event the Bosch Funds are
insufficient for such purpose. "Available TIF Revenues," as used herein, shall mean those revenues
remaining and available for use by the Commission on an annual basis after sufficient TIF Revenues
have been set aside, reserved or otherwise identified for any use otherwise permitted by the Act.
This Resolution shall not constitute a pledge or an encumbrance of the TIF Revenues and shall be
subject to further action by the Commission in order to appropriate the TIF Revenues for purposes
of repaying the Loans.
2. The President and the Secretary are hereby authorized to execute such
documents as may be necessary with respect to the matters contained herein. The Commission
further recommends and approves of action by the Common Council of the City to authorize the
issuance of revenue bonds of the City. The Mayor is authorized to execute and the Clerk of the City
is authorized to attest, if necessary, such documents as may be necessary with respect to the matters
contained herein.
3. This Resolution shall be in full force and effect after its adoption by the
Commission.
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Adopted at a meeting of the South Bend Redevelopment Commission held on
September 7, 2001, at Room 1308, County -City Building, 227 West Jefferson Boulevard, South
Bend, Indiana, 46601.
SOUTH BEND REDEVELOPMENT COMMISSION
By: Gam/
President
ATTEST:
i% Secretary
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