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HomeMy WebLinkAboutNo. 2072 authorizing the issuance of COSB redevelopment district tax increment revenue bonds and related matterss . Resolution No. 2072 A PRELIMINARY BOND THE RESOLUTION F TH BE O SOU ND REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF CITY OF SOUTH BEND, INDIANA, REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS AND RELATED MATTERS WHEREAS, the South Bend Redevelopment Commission (the "Commission "), governing body of the City of South Bend, Indiana, Redevelopment District (the "District ") did, on November 1, 2002, adopt Resolution No. 1914 (the "Declaratory Resolution ") declaring the South Side Development Area (the "Area ") to be a blighted area within the meaning of Ind. Code § 36 -7 -14 (the "Act ") and approving a Redevelopment Plan for the Area (the 'Plan ") pursuant to the Act; and WHEREAS, the Declaratory Resolution was confirmed by the Commission on December 20, 2002; and WHEREAS, pursuant to the Declaratory Resolution, the Commission designated an allocation area for purposes of Section 39 of the Act which allocation area is known as Allocation Area No. 1 ( "Allocation Area No. I") and which is described as set forth in the Declaratory Resolution; and C WHEREAS, Section 17.5 of the Act and Section 39.1 of the Act provide the means for approving amendments to the Plan; and WHEREAS, there has been proposed to the Commission by Anchor Acquisitions, Ltd. a project involving the construction of a significant commercial and retail center at or about the southwest corner of the intersection of Ireland and Michigan Streets in the Area (the 'Project "); and WHEREAS, the Commission desires to separately establish an allocation area within the Area ( "Allocation Area No. 2 ") for the purpose of separately accounting for the tax increment revenues within the Area produced as a result of the Project (the 'Project Tax Increment Revenues ") and to amend the Plan accordingly; and WHEREAS, the Commission further desires to issue bonds of the District (the "Bonds ") payable solely from Project Tax Increment Revenues for the purpose of procuring funds to finance certain local public improvements consisting of roadway improvements and related infrastructure improvements (the "Improvements ") pursuant to the Act, subject to and dependent upon the terms and conditions hereinafter set forth; and WHEREAS, the Commission desires to hold a public hearing regarding the appropriation of the proceeds of the Bonds, pursuant to Ind. Code § 6- 1.1 -18 -5, and a public hearing regarding the amendment of the Plan, pursuant to Sections 17.5 and 39.1 of the Act; C- SBNANI 187463v2 (W NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: A 1. The City, acting for and on behalf of the Commission, shall provide for the issuance of Bonds in an amount not to exceed Two Million Eight Hundred Thousand and 00 /100 Dollars ($2,800,000.00) for the purpose of procuring funds to finance the Improvements together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the Improvements, 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 capitalized interest and/or a reserve is reasonably required) and all expenses reasonably incurred in connection with the issuance of Bonds. In order to procure such funds, the Controller of the City is hereby authorized and directed to have prepared and to issue and sell the negotiable Bonds of the Redevelopment District, in one or more series or issues, the principal of and interest on which are payable from the Project Tax Increment Revenues, which Bonds shall be issued in the name of the City, for and on behalf of the Redevelopment District, in an aggregate principal amount not to exceed Two Million Eight Hundred Thousand and 00 /100 Dollars ($2,800,000.00), with a discount not to exceed the discount set forth in or determined by a final bond resolution to be adopted by the Commission (the "Final Bond Resolution "), together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the Improvements and the issuance of the Bonds, including the total cost of all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount and supervisory expenses, capitalized interest and reserve amount, if any, which estimated cost of the Improvements and such expenses to be financed from proceeds of the Bonds shall not exceed Two Million Eight Hundred Thousand and 00 /100 Dollars ($2,800,000.00), plus investment earnings thereon. 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 Project Tax Increment Revenues. The Bonds shall bear interest at a rate or rates and have such maturities as set forth in the Final Bond Resolution. 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 of the Commission. 2. The Commission hereby approves and ratifies the actions taken by the Secretary of the Commission in conjunction with counsel to publish notice of a public hearing regarding the appropriation of the proceeds of the Bonds as required by Ind. Code § 6- 1.1 -18 -5 and Ind. Code § 5 -3 -1, which hearing shall be conducted at the special meeting of the Commission scheduled to be held on July 27, 2004, at 8:00 a.m. SBIMANI 187463v2 - 2 - 3. The Commission hereby approves and ratifies the actions taken by the (apol Secretary of the Commission in conjunction with counsel to publish notice of a public hearing regarding the amendment of the Plan as required by Sections 17.5 and 39 of the Act and Ind. Code § 5 -3 -1, which hearing shall be conducted at the special meeting of the Commission scheduled to be held on July 27, 2004, at 8:00 a.m. 4. The President and Secretary of the Commission shall certify a copy of this Resolution to the Controller of the City. 5. 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 July 16, 2004, at Room 1308, County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana. ILO� ATTEST: ec etary SOUTH BEND REDEVELOPMENT COMMISSION By: 'emjv�4 President SBIMANI 187463v2 - 3 -