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HomeMy WebLinkAboutNo. 1898 preliminary bond authorizing the issuance of bonds of the SB Redevelopment District for purpose of raising money for Redevelopment/Economic Development in the SEDAa RESOLUTION NO. 1898 A PRELIMINARY BOND RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF BONDS OF THE SOUTH BEND REDEVELOPMENT DISTRICT FOR THE PURPOSE OF RAISING MONEY FOR REDEVELOPMENT AND ECONOMIC DEVELOPMENT IN THE SAMPLE -EWING DEVELOPMENT AREA WHEREAS, the South Bend Redevelopment Commission (the "Commission ") is the governing body of the South Bend Redevelopment District (the "District "); and WHEREAS, the Commission has previously designated and declared an area in the City 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 "); and WHEREAS, the Commission and the City of South Bend, Indiana (the "City), has entered into a "Contract for Sale of Land for Private Redevelopment" (the "Contract ") with AJW South Bend Realty Corporation and The TJX Companies (collectively, "TJX ") to provide for the location of a warehousing and distribution center (the "TJX Project ") in the general vicinity of Sample and Olive Streets in the City (the "TJX Site "); and WHEREAS, the TJX Project will ultimately result in the creation of approximately 850 jobs with an estimated annual payroll of Thirty Million and 00 /100 Dollars ($30,000,000.00); and WHEREAS, the Commission has agreed in the Contract to undertake certain local public improvements to accommodate the location of the TJX Project in the Area, such local public improvements including without limitation property acquisition, demolition and removal of existing buildings and environmental remediation and related redevelopment and economic development activities at and around the TJX Site (collectively, the "Project "); and WHEREAS, the Commission finds that in order to provide funds for the payment of the cost of the Project, it is necessary and in the best interest of the District and the property and inhabitants thereof to issue bonds of the District in an aggregate principal amount not to exceed Nine Million and 00 /100 Dollars ($9,000,000.00), the principal of and interest on which shall be payable from revenues available to the Commission and, in the event such revenues are not sufficient, from a special tax levied upon all of the taxable property of the District (the "Special Tax "); and WHEREAS, the Commission anticipates that it will not be required to levy the Special Tax because the Commission expects that there will be sufficient funds to pay the principal of and interest on such bonds from taxes on real property located in the Area and taxes on the depreciable personal property of TJX or a related party, to be identified as a "designated SB[MAN 1 \128675_2.DOC taxpayer" prior to the issuance of said bonds (the "Designated Taxpayer ") for purposes of Section 39.3 of the Act, allocated and deposited in the Allocation Fund pursuant to IC 36 -7 -14- 39, proceeds from the sale or leasing of property in the Area, under IC 36- 7 -14 -22 deposited in the Allocation Fund as required by IC 36- 7 -14 -26 pursuant to the Act and such other revenues that may be made available to the Commission for such purpose; NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: 1. For the purpose of procuring funds to pay for the cost of redevelopment and economic development in or serving the Area, including, without limitation, the Project, all in and with respect to the Area, the City, acting for and on behalf of the Commission, shall provide for the issuance of bonds of the District in an aggregate principal amount not to exceed Nine Million and 00 /100 Dollars ($9,000,000.00). In order to procure the funds for such purposes, the Controller of the City is hereby authorized and directed to have prepared and to issue and sell the negotiable bonds of the District, in one or more series or issues, the principal of and interest on which are payable from taxes on real property located in the Area, taxes on the depreciable personal property of the Designated Taxpayer for purposes of Section 39.3 of the Act, allocated and deposited in the Allocation Fund pursuant to IC 36- 7 -14 -39 and proceeds from the sale or leasing of property in the Area under IC 36- 7 -14 -22 deposited in the Allocation Fund as required by IC 36- 7 -14 -26 (the "Tax Increment "), and to the extent the Tax Increment is not sufficient therefor, from the Special Tax in the District and deposited in the Redevelopment Special Taxing District Bond Fund, which bonds shall be issued in the name of the City, for and on behalf of the District, in an aggregate principal amount not to exceed Nine Million and 00 /100 Dollars ($9,000,000.00) (the "Bonds "), with a discount not to exceed the discount set forth in or determined by the final bond resolution to be adopted by the Commission (the "Final Bond Resolution "), and which amount (together with investment earnings thereon in an approximate amount of Five Hundred Thousand and 00 /100 Dollars ($500,000.00)) does not exceed the cost of redevelopment and economic development in or serving the Area, including, without limitation, the Project, together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with such redevelopment and economic development, including the total cost of all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount and supervisory expenses, capitalized interest and a debt service reserve for the Bonds to the extent that the Commission determines that a reserve is reasonably required, together with the expenses in connection with or on account of the issuance of the Bonds. The Bonds shall not constitute a corporate obligation or indebtedness of the City but shall constitute an obligation of the District. The principal of, premium, if any, and interest on the Bonds shall be payable out of the Tax Increment and other revenues made available to the Commission for such purpose and, if the Tax Increment and such other revenues are not sufficient, the Special Tax. The Bonds shall mature in such principal amounts and on such dates as set forth in the Final Bond Resolution, bear interest at the rate or rates not exceeding seven percent (7.0 %) per annum, and be payable no later than twenty -five (25) years from the date of the first principal SBIMAN 1 \ 128675_2. DOC -2- payment. The Bonds may be subject to redemption prior to maturity in whole or in part in accordance with the terms set out in the Final Bond Resolution. 2. The Commission hereby determines that the Project does not constitute a "controlled project" as such term is defined by I.C. 6- 1.1- 20 -1.1 because the Commission reasonably expects to pay the principal of and interest on the Bonds from funds other than property taxes that are exempt from the levy limitations of I.C. 6 -1.1 -18.5, such other funds being the Tax Increment and other revenues made available to the Commission for such purpose. The Special Tax would be used only in the event the Tax Increment and such other revenues are insufficient for such purpose. 3. The President and Secretary of the Commission shall certify a copy of this Resolution to the Controller of the City. 4. The Secretary of the Commission is hereby directed as required by law to cause (i) to be posted and published the notice of the decision of the Commission to issue bonds in excess of Five Thousand and 00 /100 Dollars ($5,000.00) and (ii) to be published the notice of hearing on the appropriation of the Bond proceeds. This Resolution shall be in full force and effect after its adoption by the Commission. ADOPTED at a meeting of the South Bend Redevelopment Commission held on the 19`" day of July, 2002, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. l SBIMAN I \128675_2.DOC SOUTH BEND REDEVELOPMENT COMMISSION President -3-