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HomeMy WebLinkAboutNo. 2004 amending resolution No. 1965 a bond resolution of the SBRC authorizing the issuance of taxincrement revenue bonds, series 2003 of the SB redevelopment districtRESOLUTION NO. 2004 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AMENDING RESOLUTION NO. 1965 ENTITLED "A BOND RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF TAX INCREMENT REVENUE BONDS, SERIES 2003, OF THE SOUTH BEND REDEVELOPMENT DISTRICT" WHEREAS, the South Bend Redevelopment Commission (the "Commission "), the governing body of the South Bend Department of Redevelopment (the "Department ") and the South Bend Redevelopment District (the 'Redevelopment District "), exists and operates under Indiana Code 36 -7 -14, as amended from time to time (the "Act "); and WHEREAS, the Commission has previously designated and declared an area in the City of South Bend, Indiana (the "City ") known as the Airport Economic Development Area to be an economic development area and an allocation area (the "Area ") for purposes of tax increment financing and established an allocation fund for said Area (the "Allocation Fund "); IL and WHEREAS, the Commission has previously adopted Resolution No. 1965 entitled " A Bond Resolution of the South Bend Redevelopment Commission Authorizing the Issuance of Tax Increment Revenue Bonds, Series 2003, of the South Bend Redevelopment District" (the "Bond Resolution ") which Bond Resolution authorized the issuance of bonds of the Redevelopment District (the "Bonds "); and WHEREAS, the Commission desires to make certain amendments to the Bond Resolution; NOW, THEREFORE, BE IT RESOLVED, by the South Bend Redevelopment Commission as follows: Section 1. Section 1 of the Bond Resolution is hereby amended to read as follows: SECTION 1. For the purpose of procuring funds to pay for the cost of redevelopment and economic development in the Area, together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the redevelopment and economic development of the Area, 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 as set forth herein, together with the expenses in connection with or on account of the issuance of the SBIMANI 158875v2 Bonds, the City acting for and on behalf of the Redevelopment District, shall make a loan in the aggregate principal amount not to exceed Thirteen Million and 00 /100 Dollars ($13,000,000.00). In order to procure funds for said loan, the City Controller (the "Controller ") is hereby authorized and directed to have prepared and to issue and sell the negotiable bonds of the Redevelopment District, which Bonds shall be issued in the name of the City, for and on behalf of the Redevelopment District and which shall be designated "City of South Bend, Indiana, Redevelopment District Tax Increment Revenue Bonds, Series 2003 (Airport Economic Development Area)" in an aggregate principal amount not to exceed Thirteen Million and 00 /100 Dollars ($13,000,000.00), and which amount (together with investment earnings thereon in the estimated amount of Two Hundred Thousand and 00 /100 Dollars ($200,000.00) does not exceed the cost, as estimated by the Commission, of redevelopment and economic development in 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 the redevelopment and economic development of the Area, 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 as provided herein, together with the expenses in connection with or on account of the issuance of the Bonds therefor. The Bonds shall not constitute a corporate obligation or indebtedness of the City, but shall constitute an obligation of the Redevelopment District. The Bonds, together with interest thereon, shall be payable solely out of the Tax Increment. The Bonds shall be issued in fully registered form in the denomination of Five Thousand Dollars ($5,000) or an integral multiple thereof (the "Authorized Denomination ") not exceeding the aggregate principal amount of Bonds maturing in any one (1) year. The Bonds shall be numbered consecutively from 2003R -1 upwards and shall bear interest payable semiannually commencing February 1, 2004, or such later date as may be set forth in the Issuer's Certificate, defined herein, and each August 1 and February 1 thereafter, at a rate or rates not to exceed seven percent (7%) (the exact rate or rates of interest to be determined by negotiated sale as set forth in Section 9 hereof) or such lower rate or rates for such maturities as may be determined by the President of the Commission and the Controller and set forth in a certificate of the Redevelopment District executed by the President of the Commission and the Controller prior to the sale of the Bonds, establishing certain provisions and details with respect to the Bonds (hereinafter referred to as the "Issuer's Certificate "). Interest shall be calculated on the basis of twelve (12) thirty (30)- day months for a three hundred sixty (360) -day year. JL SBIMANI 158875v2 - 2 - Notwithstanding anything herein to the contrary, the Bonds shall, in compliance with all applicable laws, be initially issued and held in book -entry form and registered in the name of Cede & Co., as nominee for The Depository Trust Company without physical distribution of Bonds to the purchasers thereof. The President of the Commission is hereby authorized to take such action as may be necessary to provide for the Bonds to be issued in book - entry -only form, including without limitation executing a Blanket Issuer Letter of Representations. The Bonds shall mature semiannually on each February 1 and August 1 beginning on August 1, 2004, or such later date as may be set forth in the Issuer's Certificate, and thereafter on each February 1 and August 1 through and including August 1, 2024, or such earlier final maturity date and in such annual principal amounts set forth in the Issuer's Certificate. A Registrar and Paying Agent (the "Registrar" or the "Paying Agent" or in both such capacities as the "Registrar and Paying Agent ") shall be appointed by the Controller. The Controller is hereby authorized to solicit and receive proposals with regard to the services of a registrar and paying agent. The Registrar and Paying Agent is hereby charged with and shall by appropriate agreement undertake the performance of all of the duties and responsibilities customarily associated with each such position, including without limitation authenticating the Bonds. The Registrar shall keep and maintain at its principal office books for the registration and for the transfer of the Bonds (the "Bond Register "). The President of the Commission and the Controller are hereby authorized and directed, on behalf of the Commission, to enter into such agreements or understandings with the Registrar and Paying Agent as will enable the Registrar and Paying Agent to perform the services required of a registrar and a paying agent, and is authorized and directed to pay the Registrar and Paying Agent for its services out of available funds. The principal of and premium, if any, on the Bonds shall be payable at the principal office of the Paying Agent for the Bonds. Interest on the Bonds shall be paid by check or draft mailed or delivered to the registered owners thereof at the address as it appears on the Bond Register as of the 15`h day of the month immediately preceding the interest payment date or at such other address as is provided to the Paying Agent in writing by such registered owners. All payments on the Bonds shall be made in any coin or currency of the United States of America which on the dates of such payments shall be legal tender for the payment of public and private debts. The Bonds shall bear an original date which shall be the first day of the month in which the Bonds are sold (the "Original Date ") and each Bond shall also bear the date of its authentication. Bonds authenticated on or before July 15, 2004, shall be paid interest from the Original Date. Bonds authenticated after July 15, 2004, shall pay interest from the interest payment date immediately preceding the date of authentication of such Bonds unless the Bonds are authenticated between the fifteenth day of the month preceding an interest SBIMANI 158875v2 - 3 - payment date and the interest payment date, in which case interest thereon shall be paid from such interest payment date. Each Bond shall be transferable or exchangeable only upon the Bond Register by the registered owner thereof in person, or by his attorney duly authorized in writing, upon surrender of such Bond together with a written instrument of transfer or exchange satisfactory to the Registrar duly executed by the registered owner or his attorney duly authorized in writing, and thereupon a new fully registered Bond or Bonds in the same aggregate principal amount and of the same maturity shall be executed and delivered in the name of the transferee or transferees or the registered owner, as the case may be, in exchange therefor. Bonds may be transferred or exchanged without cost to the registered owner, except for any tax or governmental charge required to be paid with respect to the exchange. The Registrar shall not be required to transfer or exchange any Bond called for redemption or during the period from the fifteenth day of any calendar month immediately preceding an interest payment date to such interest payment date. The City, the Commission, the Registrar and the Paying Agent may treat and consider the person in whose name such Bonds are registered as the absolute owner thereof for all purposes including for the purpose of receiving payment of, or on account of, the principal thereof and interest due thereon. In the event any Bond is mutilated, lost, stolen or destroyed, the City may execute on behalf of the Redevelopment District and the registrar may authenticate a new Bond of like date, maturity and denomination as that mutilated, lost, stolen or destroyed, which new Bond shall be marked in a manner to distinguish it from the Bond for which it was issued; provided, that in the case of any mutilated Bond, such mutilated Bond shall first be surrendered to the Registrar, and in the case of any lost, stolen or destroyed Bond there shall be first furnished to the City and the Registrar evidence of such loss, theft or destruction satisfactory to the City and the Registrar, together with indemnity satisfactory to them. In the event any such lost, stolen or destroyed Bond shall have matured, instead of issuing a duplicate Bond, the City and the Registrar may, upon receiving indemnity satisfactory to them, pay the same without surrender thereof. The City and the Registrar may charge the owner of such Bond with their reasonable fees and expenses in connection with the above. Every substitute Bond issued by reason of any Bond being lost, stolen or destroyed shall, with respect to such Bonds, constitute a substitute contractual obligation of the City, acting for and on behalf of the Redevelopment District, whether or not the lost, stolen or destroyed Bond shall be found at any time, and shall be entitled to all the benefits of this Resolution, equally and proportionately with any and all other Bonds duly issued hereunder. The Registrar or the Paying Agent may at any time resign as Registrar or Paying Agent by giving thirty (30) days' written notice to the Commission and by first -class mail to each registered owner of Bonds then outstanding, and such resignation will take effect at the end of such thirty (30) SBIMANI 158875v2 - 4 - days or upon the earlier appointment of a successor Registrar or Paying Agent, as the case may be, by the Commission. Such notice to the Commission may be served personally or be sent by registered mail. The Registrar or Paying Agent may be removed at any time as Registrar or Paying Agent by the Commission, in which event the Commission may appoint a successor Registrar or Paying Agent as the case may be. The Commission shall notify each registered owner of Bonds then outstanding by first -class mail of the removal of the Registrar or Paying Agent. Notices to registered owners of Bonds shall be deemed to be given when mailed by first -class mail to the addresses of such registered owners as they appear on the Bond Register. Any predecessor Registrar shall deliver all the Bonds in its possession and the Bond Register to the successor Registrar and any predecessor Paying Agent shall deliver all the cash in its possession to the successor Paying Agent. The Bonds shall be executed in the name of the City, acting for and on behalf of the Redevelopment District, by the manual or facsimile signature of the Mayor, countersigned by the manual or facsimile signature of the Controller and attested by the manual or facsimile signature of the City Clerk, who shall cause the official seal of the City to be impressed or a facsimile thereof to be printed on each of the Bonds. Subject to the provisions for registration, the Bonds shall be negotiable under the laws of the State of Indiana. The Bonds shall be authenticated with the manual signature of an authorized representative of the Registrar, and no Bonds shall be valid or obligatory for any purpose or be entitled to any security or benefit under this Resolution until the certificate of authentication on such Bond shall have been so executed. follows: Section 2. Section 2 of the Bond Resolution is hereby amended to read as SECTION 2. (a) Optional Redemption. The Bonds maturing on February 1, 2015, and thereafter are subject to redemption at the option of the Commission on August 1, 2013, or any date thereafter, only in Authorized Denominations, as a whole or in part from time to time (with the maturities and amounts of the Bonds to be redeemed to be selected by the Commission), at face value plus interest accrued on the Bonds so redeemed to the date fixed for redemption, and without premium. Unless waived by any holder of Bonds to be redeemed, official notice of any such redemption shall be given by the Registrar on behalf of the Commission identifying the Bonds, by mailing a copy of an official redemption notice by registered or certified mail at least thirty (30) days and not more than sixty (60) days prior to the date fixed for redemption to the registered owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or SBIMANI 158875v2 - 5 - at such other address as is furnished in writing by such registered owner to the Registrar; provided, however, that failure to give such notice by mailing, or any defect therein, with respect to any Bond shall not affect the validity of any proceedings for the redemption of other Bonds. All official notices of redemption shall be dated and shall state: (1) the redemption date, (2) the redemption price, (3) if less than all outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed, (4) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and (5) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the place provided for the payment of the principal of and premium, if any, on the Bonds. Prior to any redemption date, the Commission shall deposit with the Paying Agent an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the Commission shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Paying Agent at the redemption price. Bonds redeemed in part may be exchanged for a Bond or Bonds of the same maturity in Authorized Denominations equal to the remaining principal amount. In addition to the foregoing notice, further notice may be given by the Registrar as it deems appropriate by mail, publication or otherwise to registered securities depositories, national information services or others containing the above information and such further information as the Registrar may deem appropriate, but no defect in said further notice, nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above described. SBIMANI 158875v2 - 6 - (b) Mandatory Sinking Fund Redemption. At the option of the purchaser for the Bonds, all or a portion of the Bonds may be aggregated into one (1) or more term bonds payable from mandatory sinking fund redemption payments (the "Term Bonds ") required to be made as set forth below. The Term Bonds shall have a stated maturity or maturities on February 1 or August 1 of the years 2005 through and including 2024, or such other years as may be set forth in the Issuer's Certificate or as determined by the successful bidder. In the event that the purchaser opts to aggregate certain Bonds into Term Bonds, such Term Bonds shall be subject to mandatory sinking fund redemption prior to maturity at a redemption price equal to 100% of the principal amount thereof, plus accrued interest to the redemption date, but without premium, on February 1 and August 1 of each year and in the principal amounts corresponding to and consistent with the maturity schedule for the Bonds set forth in the Issuer's Certificate. The Registrar and Paying Agent shall credit against the current mandatory sinking fund requirement for a Term Bond of a particular maturity, any Bonds of such maturity delivered to the Registrar and Paying Agent for cancellation or purchased for cancellation by the Registrar and Paying Agent and canceled by the Registrar and Paying Agent and not theretofore applied as a credit against any mandatory sinking fund requirement. Each Bond so delivered or purchased shall be credited by the Registrar and Paying Agent at 100% of the IL principal amount thereof against the mandatory sinking fund redemption requirements for the applicable Term Bond In order of mandatory sinking fund redemption (or final maturity) dates determined by the Board, and the principal amount of such Term Bond to be redeemed on such mandatory sinking fund redemption dates by operation of the mandatory sinking fund requirements shall be reduced accordingly; provided, however, the Registrar and Paying Agent shall only credit Bonds against the mandatory sinking fund requirements to the extent such Bonds are received on or before 45 days preceding the applicable mandatory sinking fund redemption date. The Registrar shall determine by lot (treating each $5,000 principal amount of each Bond as a separate Bond for such purpose) the Bonds within a Term Bond of a particular maturity to be redeemed pursuant to the mandatory sinking fund redemption requirements on February 1 and August 1 of each year. Notice of any such mandatory sinking fund redemption shall be given in the same manner as notice of optional redemption is required to be given pursuant to this Section 2 of this Resolution. If Bonds are to be redeemed by optional redemption and mandatory sinking fund redemption on the same date, the Registrar shall select by lot the Bonds for optional redemption before selecting the Bonds by lot for the mandatory sinking fund redemption. SBIMANI 158875v2 - % - In the event any of the Bonds are issued as Term Bonds, the form of the Bond set forth in Section 3 of this Resolution shall be modified accordingly. Any reference to payment of principal on the Bonds shall include payment of scheduled mandatory sinking fund redemption payments described in this Section 2. follows: Section 3. Section 3 of the Bond Resolution is hereby amended to read as SECTION 3. (a) The Bonds may be sold (i) at public sale in accordance with I.C. 5 -3 -1, (ii) at a negotiated, private sale upon terms acceptable to the President of the Commission and the Controller, or (iii) at a private sale to the Indiana Bond Bank ( "the Bond Bank "). In no event shall the Bonds be sold at a purchase price of less than ninety -nine percent (99%) of the par value of the Bonds or such higher purchase price as may be set forth in the Issuer's Certificate. If the President of the Commission and the Controller determine to proceed with a negotiated sale of the Bonds, they shall set forth such determination in the Issuer's Certificate. The President of the Commission and the Controller are hereby authorized to enter into a bond purchase agreement for the sale of the Bonds on the terms and conditions set forth therein, consistent with the provisions of this Resolution. (b) In the event that the Bonds are not sold via a negotiated sale, prior to the sale of the Bonds, the Controller shall cause to be published a notice of intent to sell bonds two times at least one week apart in the South Bend Tribune, the Tri- County News, and the Court and Commercial Record. The notice of such sale or a summary thereof may also be published in such other publications, in the discretion of the Controller. The notice must state that any person interested in submitting a bid for the Bonds may furnish in writing, at the address set forth in the notice, the person's name, address, and telephone number, and that any such person may also furnish a telex number. The notice must also state: (1) the amount of the Bonds to be offered; (2) the denominations; (3) the dates of maturity; (4) the maximum rate or rates of interest; (5) the place of sale; and (6) the time within which the name, address and telephone number must be furnished, which must not be less than seven (7) days after the last publication of the notice. Each person so registered shall be notified of the date and time bids will be received not less than twenty -four (24) hours before the date and time of sale. The notification shall be made by telephone at the number furnished by the person, and also by telex if the person furnishes a telex number. Such notice may also include such other information as the Controller shall deem necessary. Such notice shall also provide, among other things, that each bid shall be accompanied by a certified or cashier's check or a financial surety bond in an amount equal to one percent (1 %) of the principal amount of the Bonds to guarantee performance SBIMANI 158875v2 - 8 - on the part of the bidder. Such notice shall provide further that, if a financial surety bond is used by the successful bidder, such bidder must submit the amount of the financial surety bond in the form of a certified or cashier's check or a wire transfer consisting of immediately available funds not later than 3:00 p.m. (local time) on the next business day following the award to the successful bidder by the City. Such notice shall provide further that, in the event the successful bidder shall fail or refuse to accept delivery of and pay for the Bonds as soon as the Bonds are ready for delivery, or at the time fixed in the notice of intent to sell, then such amount deposited with the City shall become the property of the City and shall be considered as the City's liquidated damages on account of such default. All bids for Bonds shall be sealed and shall be presented to the Controller at the Controller's office, and the Controller shall continue to receive all bids offered until the hour fixed for the sale of the Bonds, at which time and place the Controller shall open and consider each bid. Bidders for the Bonds shall be required to name the rate or rates of interest which the Bonds are to bear, not exceeding seven percent per annum (or such lesser rate as the Controller, with the advice of the financial advisor of the Commission, shall determine prior to the publication of the notice of intent to sell). Such interest rate or rates shall be in multiples of one - eighth (1/8) or one - twentieth (1/20) of one percent (1 %). Bids specifying more than one interest rate shall also specify the amount and maturities of the Bonds bearing each rate, and all Bonds maturing on the same date shall ,„r bear the same rate of interest. The interest rate on Bonds of a given maturity must be at least as great as the interest rate on Bonds of any earlier maturity. Subject to the provisions set forth below, the Controller shall award the Bonds to the bidder offering the lowest net interest cost to the City, to be determined by computing the total interest on all of the Bonds from the date thereof to their maturities and deducting therefrom the premium bid, if any, or adding thereto the amount of any discount. No bid for less than ninety -nine percent (99 %) of the par value of the Bonds (or such higher percentage of the par value of the Bonds as the Controller, with the advice of the financial advisor to the Commission, shall determine prior to the publication of the notice of intent to sell), plus accrued interest at the rate or rates named to the date of delivery, will be considered. The Controller shall have full right to reject any and all bids. In the event no acceptable bid is received at the time fixed for the sale of the Bonds, the Controller shall be authorized to continue to receive bids from day to day thereafter for a period not to exceed thirty (30) days, without readvertising, pursuant to Indiana law. (c) If sold to the Bond Bank, the Bonds shall be sold in such denomination or denominations as the Bond Bank may request, and pursuant to a purchase agreement (the "Purchase Agreement ") between the Commission and the Bond Bank, hereby authorized to be entered into and executed by the President on behalf of the Commission, and attested by the Controller, subsequent to the date SBIMANI 158875v2 - 9 - of the adoption of this Resolution. Such Purchase Agreement may set forth the definitive terms and conditions for such sale, but all of such terms and conditions must be consistent with the terms and conditions of this Resolution, including without limitation, the interest rate or rates on the Bonds which shall not exceed the maximum rate of interest for the Bonds authorized pursuant to this Resolution. The Bonds sold to the Bond Bank shall be accompanied by all documentation required by the Bond Bank pursuant to the provisions of Indiana Code 5 -1.5 and the Purchase Agreement, including, without limitation, an approving opinion of nationally recognized bond counsel, certification and guarantee of signatures and certification as to no litigation pending, as of the date of delivery of the Bonds to the Bond Bank, challenging the validity or issuance of the Bonds. In the event the Controller determines to sell the Bonds to the Bond Bank, the submission of an application to the Bond Bank and the entry by the Commission into the Purchase Agreement and the execution of the Purchase Agreement on behalf of the Commission by the President in accordance with this Resolution are hereby authorized, approved and ratified. (d) If the Bonds are sold at a public or private, negotiated sale other than to the Bond Bank, the Bonds shall be offered and sold pursuant to an Official Statement with respect to the Bonds (the "Official Statement "), to be made available and distributed in such manner, at such times, for such periods and in such number of copies as may be required pursuant to Rule 15c2 -12 promulgated by the United States Securities and Exchange Commission (the "Rule "). The Commission hereby authorizes the Controller to approve the form of the Preliminary Official Statement upon the advice of counsel with such approval to be conclusively evidenced by signature of the Controller thereon. The Commission hereby authorizes the Controller to deem "final" the Preliminary Official Statement, as of its date, in accordance with the provisions of the Rule, subject to completion as permitted by the Rule, and the Commission further authorizes the distribution of the deemed final Official Statement. The Commission hereby authorizes and directs the Controller, upon the advice of the counsel to place into final form and distribute and cause to be delivered the final Official Statement in accordance with the Rule, and further authorizes the Controller to execute the final Official Statement. The Commission covenants and agrees that it will comply with and carry out the continuing disclosure requirements of Section (b)(5) of the Rule. The Commission hereby authorizes the Controller to approve a continuing disclosure contract and to execute the same on the date the Bonds are issued. Section 4. Section 5 of the Bond Resolution is hereby amended as follows: SECTION 5. (a) The Redevelopment District reserves the right to authorize and issue additional bonds ('Parity Bonds "), payable out of the Tax Increment, ranking on a parity with the Bonds authorized by this Resolution and payable ratably from the Tax Increment for the purpose of raising money for future SBWANI 158875v2 -10- property acquisition, redevelopment and economic development in or serving the Area. In the event any Parity Bonds are issued pursuant to this Paragraph No. 5(a), the term "Bonds" in this Resolution shall, unless the context otherwise requires, be deemed to refer to the bonds authorized to be issued by this Resolution and such Parity Bonds. The authorization and issuance of Parity Bonds shall be subject to the following conditions precedent: (i) All interest and principal payments with respect to all obligations payable from the Tax Increment shall be current to date with no payment in arrears. (ii) The balance in the Reserve Account shall equal the Debt Service Reserve Requirement. (iii) The Commission shall have received a certificate prepared by an independent certified public accountant or an independent financial consultant ( "Certifier ") certifying that the Tax Increment estimated to be received in each succeeding year, adjusted as provided below, is estimated to be equal to at least 125% of the principal and interest requirements of all obligations of the Commission payable from Tax Increment for each respective year during the term of the bonds with respect to the Bonds and the Parity Bonds. In estimating the Tax Increment to be received in any future year, the Certifier shall base his calculation on assessed valuation actually assessed or to be assessed as of the assessment date immediately preceding the issuance of the Parity Bonds; provided, however, the Certifier shall adjust such assessed values for the current and future reductions of real property tax abatements granted to property owners in the Area. No increase in the Tax Increment to be received in any future year shall be assumed which results from projected inflation in property values. (iv) The principal of said Parity Bonds shall be payable semiannually on February 1 and August 1 and interest on said Parity Bonds shall be payable semiannually on February 1 and August 1 in years in which principal and interest are payable. The Commission shall approve and confirm the findings and estimates set forth in the above - described certificate in any supplemental resolution authorizing the issuance of the Parity Bonds. (b) Except as otherwise provided in this Section, so long as any of the Bonds are outstanding, no additional bonds or other obligations pledging any portion of the Tax Increment shall be authorized, executed or issued by the City acting for and on behalf of the Redevelopment District except such as shall be made subordinate and junior in all respects to the Bonds, unless all of the Bonds are redeemed and retired coincidentally with the delivery of such additional bonds or other obligations, or, as provided in Section 15, funds SBIMANI 158875v2 - 11 - 14 sufficient to effect such redemption are available and set aside for that purpose at the time of issuance of such additional bonds. Section 5. The Commission hereby acknowledges that the remaining terms and provisions of the Bond Resolution remain in full force and effect. Section 6. This Resolution shall be in full force and effect after its adoption by the Commission. SBIMANI 158875v2 -12- ADOPTED AND APPROVED at a meeting of the South Bend Redevelopment Commission held on the 5`h day of September, 2003, at Room 1308, County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. SOUTH BEND REDEVELOPMENT COMMISSION By: President ATTEST: Vice President SBIMANI 158875v2 - 13-