HomeMy WebLinkAboutNo. 1988 pledging certain tax increment revenues to the payment of the COSB economic development revenue bonds of 2003, together with interest thereon (Kite Capital, LLC project)'r `%
RESOLUTION NO. 1988
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
COMMISSION PLEDGING CERTAIN TAX INCREMENT
REVENUES TO THE PAYMENT OF THE CITY OF SOUTH BEND,
INDIANA, ECONOMIC DEVELOPMENT REVENUE BONDS OF 2003,
TOGETHER WITH INTEREST THEREON
(THE KITE CAPITAL, LLC PROJECT)
WHEREAS, the South Bend Redevelopment Commission (the "Commission ") has
previously entered into a Development Agreement (the "Agreement "), with the City of South
Bend, Indiana (the "City ") and Kite Capital, LLC (the "Company "), pursuant to which the
Company has agreed to construct a 450,000 - 500,000 square foot retail power center having a
village concept to be known as 'Erskine Village" (the "Project ") on the site of the current
Scottsdale Mall in the City (the "Site ") and pursuant to which the City and the Commission have
agreed to provide certain economic incentives to facilitate the Project; and
WHEREAS, the Commission has previously designated and declared an area in the City
known as the South Side Development Area (the "Area ") to be a redevelopment area, which
Area includes the Site, and has designated the Area as an allocation area and established an
allocation fund (the "Allocation Fund ") for purposes of tax increment financing; and
ILWHEREAS, the City intends to issue bonds pursuant to I.C. 36 -7 -11.9 and 12 to be
known as the "City of South Bend, Indiana, Economic Development Revenue Bonds of 2003
(Kite Capital, LLC Project)" (the 'Bonds "), the proceeds of which are to be used to finance a
portion of the costs of the Project consisting of the demolition of the former Montgomery Ward
store and automotive service center and the construction of a discount department store
consisting of approximately 123,680 square feet on a portion of the Site and the costs of issuance;
and
WHEREAS, the Commission anticipates that the City will loan the proceeds of the
Bonds to the Company pursuant to a loan agreement to be entered into by and between the City
and the Company; and
WHEREAS, the Commission anticipates that sufficient funds will be available to the
Commission to pay the principal of and interest on the Bonds with such funds being derived
from the tax increment revenues allocated to the Commission and resulting solely from the
increase in the assessed value of real property which comprises the Site and improvements
thereon (the "Project Tax Increment Revenues "); and
WHEREAS, the Commission desires to pledge such Project Tax Increment Revenues to
pay the principal of and interest on the Bonds; and
IL
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WHEREAS, neither the City nor the Commission shall have any obligation with respect
to the payment of principal of or interest on the Bonds other than the payment of the Project Tax
Increment Revenues;
NOW, THEREFORE, BE IT RESOLVED, by the South Bend Redevelopment
Commission as follows:
1. The Commission hereby pledges the Project Tax Increment Revenues to the
payment of the principal of and interest on the Bonds for a period up to but not exceeding
twenty -five (25) years from the date of the issuance of the Bonds. Such pledge shall terminate at
the earliest of the final payment on the Bonds or the conclusion of the twenty -five (25) year
period.
2. There is hereby created and established a Kite Capital, LLC Project Principal and
Interest Account of the Allocation Fund (the "Principal and Interest Account ").
3. Project Tax Increment Revenues received by the Commission shall be deposited
into the Principal and Interest Account and appropriated for the payment of the principal of and
interest on the Bonds then currently due, or to pay principal and interest remaining unpaid from
prior years or to prepay principal and interest, all as set forth in the last paragraph of Section 6.4
of the Agreement. Only Project Tax Increment Revenues are hereby pledged for payment of the
Bonds. This resolution shall not be construed as pledging tax increment revenues of the Area
generally. Project Tax Increment Revenues received in any year in excess of the amount
ILI necessary to pay the principal of and interest on the Bonds in said year do not remain pledged
and may be used by the Commission for any purpose set forth in I.C. 36- 7- 14 -39.
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 Project Tax Increment Revenues contained herein.
ADOPTED at a meeting of the South Bend Redevelopment Commission held on July 18,
2003, in Room 1308, County -City Building, 227 W. Jefferson, South Bend, Indiana 46601.
ATTEST:
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Secretary
SBIMANI 1560020
SOUTH BEND REDEVELOPMENT COMMISSION
By:
President
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