HomeMy WebLinkAboutNo. 2097 pledging certain tax increment revenues to the payment of the COSB, taxable economic development revenue bonds, Series 2004 (Erskine Village Project)RESOLUTION NO.
A RESOLUTION OF THE SOUTH BEND
REDEVELOPMENT COMMISSION PLEDGING CERTAIN
TAX INCREMENT REVENUES TO THE PAYMENT OF THE
CITY OF SOUTH BEND, INDIANA, TAXABLE ECONOMIC
DEVELOPMENT REVENUE BONDS, SERIES 2004
(ERSKINE VILLAGE PROJECT)
WHEREAS, the South Bend Redevelopment Commission (the "Commission "),
the governing body of the City of South Bend, Indiana, Redevelopment District (the 'District ")
and the City of South Bend, Indiana, Department of Redevelopment, exists and operates under
the provisions of Ind. Code § 36 -7 -14, as amended from time to time (the "Act "); and
WHEREAS, the Commission has previously (i) designated and declared an area
in the City of South Bend, Indiana (the "City "), known as the South Side Development Area to
be a blighted area within the meaning of Ind. Code § 36 -7 -14; (ii) established Allocation Area
No. 3 (the "Area "), a portion of the South Side Development Area, to be an allocation area for
IL the purpose of separately accounting for the tax increment revenues derived from the Area; and
(iii) created an allocation fund for the Area (the "Allocation Fund ") for purpose of tax increment
financing; and
WHEREAS, the City intends to issue its taxable economic development revenue
bonds in one (1) or more series pursuant to Ind. Code § 36 -7 -11.9 and 12 to be known as the
"City of South Bend, Indiana, Taxable Economic Development Revenue Bonds, Series 2004
(Erskine Village Project)" (the 'Bonds "), the proceeds of which are to be used to finance a
portion of the costs of any of the following: (i) the demolition of the former Scottsdale Mall site,
(ii) the construction of a new discount store, (iii) the construction of additional retail
establishments, and (iv) the construction, acquisition and renovation of such other improvements,
including but not limited to utility relocation and site preparation, (collectively, the
"Improvements ") that will facilitate the development and construction of a 400,000 - 500,000
square foot retail power center having a village concept (the "Project ") by KSK- Scottsdale Mall,
L.P. (the 'Borrower ") at or near the southeast corner of the intersection of Ireland Road and
Miami Street in the City; and
WHEREAS, the Commission anticipates that the City will loan the proceeds of
the Bonds to the Borrower pursuant to a loan agreement to be entered into by and between the
City and the Borrower; and
WHEREAS, the Commission desires to pledge tax increment revenues allocated
to the Commission and resulting solely from the increase in the assessed value of real property
and improvements thereon located in the Area and from the proceeds from the sale or leasing of
property in the Area, under Ind. Code § 36- 7 -14 -22 and deposited into the Allocation Fund, as
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required by Ind. Code § 36- 7 -14 -26 as a result of the Project (the 'Project Tax Increment
Revenues ") to the payment of principal of and interest on the Bonds (the 'Pledge "); and
WHEREAS, the Commission anticipates that sufficient Project Tax Increment
Revenues will be available to the Commission to pay the principal of and interest on the Bonds
and;
WHEREAS, on July 18, 2003, the Commission adopted Resolution No. 1988
pledging tax increment revenues of the South Side Development Area to the payment of the
Bonds, which the Commission now desires to rescind and repeal in favor of the Pledge described
herein to more effectively provide for the development and redevelopment of the Area; and
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 City of South Bend, Indiana,
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 said twenty -five (25) year
period.
2. There is hereby created and established a KSK- Scottsdale Mall, L.P.
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 shall be appropriated for the payment of
the principal of and interest on the Bonds. Project Tax Increment Revenues received in excess of
the amount necessary to pay (i) the principal of and interest on the Bonds currently or scheduled
to be due and expected to be paid from such revenues and (ii) to pay any amount of principal
which was not previously paid when due or interest accruing thereon as a result an insufficiency
in Project Tax Increment Revenues in a prior year or years do not remain pledged and may be
used by the Commission for any purpose set forth in Section 39 of the Act; provided however,
that the Commission may only use such excess Project Tax Increment Revenues to the extent
that the balance of the Principal and Interest Account exceeds the amount necessary to satisfy all
principal and interest payments on the Bonds that are currently due, past due or scheduled to be
due through the final maturity of the Bonds or any refunding bonds. 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.
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(601, 4. The Commission hereby repeals Resolution No. 1988 in
Y P its entirety
5. 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
September 13, 2004, in Room 1308, County -City Building, 227 West Jefferson Boulevard, South
Bend, Indiana 46601.
SOUTH BEND REDEVELOPMENT
COMMISSION
Marcia Jones, Presi
ATTEST:
14
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