HomeMy WebLinkAboutNo. 1797 pledging certain tax increment revenues to the repayment of a section 108 loan from the U.S. Dept. of Housing and Urban Development (The Oliver Plow Works Project)RESOLUTION NO. I q. �
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
COMMISSION PLEDGING CERTAIN TAX INCREMENT
REVENUES TO THE REPAYMENT OF A SECTION 108 LOAN FROM THE U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
(THE OLIVER PLOW WORKS PROJECT)
WHEREAS, the City of South Bend, Indiana (the "City ") has previously submitted
an Application for Federal Assistance to the U.S. Department of Housing and Urban Development
( "HUD ") requesting federal funding in the form of a Brownfields Economic Development Initiative
( "BEDI ") Grant and has received a BEDI Grant in the amount of Eight Hundred Thousand Dollars
($800,000.00); and
WHEREAS, the City intends to submit an application to HUD requesting a loan
co through the Section 108 Loan Guarantee Program ( "Section 108 Loan") in order to finance the
acquisition of the former Oliver Plow Works site (the "Site "), demolition of the improvements
located thereon and construction of infrastructure to support the redevelopment of the Site (the
"Project "); and
WHEREAS, the City intends that all or a portion of the BEDI Grant funds will be
utilized to fund a debt service reserve fund in connection with the repayment of the Section 108
Loan; and
WHEREAS, the City of South Bend Redevelopment Commission (the
"Commission ") has previously designated and declared an area in the City known as the Sample -
Ewing Development Area (the "Area ") to be a redevelopment area and allocation area for purposes
of tax increment financing; and
WHEREAS, the Commission anticipates that sufficient funds will be available to
the Commission to pay the principal of and interest on the Section 108 Loan with such funds being
derived from the tax increment revenues (the "Tax Increment Revenues ") generated in the Area and
allocated to the Commission; and
WHEREAS, the Commission desires to pledge such Tax Increment Revenues to the
City for its use in order to pay the principal of and interest on the Section 108 Loan; and
WHEREAS, the Commission shall have no other obligation with respect to the
payment of principal of or interest on the Section 108 Loan other than the payment of the Tax
Increment Revenues which may be generated in the Area;
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ce NOW, THEREFORE, BE IT RESOLVED, by the South Bend Redevelopment
Commission as follows:
1. The Commission hereby irrevocably pledges the Tax Increment Revenues
generated in the Area (being those Tax Increment Revenues available after the payment of all
indebtedness payable from such Tax Increment Revenues and such lease rentals the Commission
may determine from time to time to pay from such Tax Increment Revenues) to the City for its use
in order to pay the principal of and interest on the Section 108 Loan for a period up to but not
exceeding ten (10) years from the date of the origination of the Section 108 Loan. Such pledge shall
terminate at the earliest of the final payment on the Section 108 Loan or the conclusion of the ten
(10) year period.
2. There is hereby created and established within the Redevelopment District
Bond Fund, a Oliver Plow Works Project Principal and Interest Account (the "Principal and Interest
Account ").
3. Tax Increment Revenues received by the Commission and not otherwise
needed as set forth in Section 1 for the payment of indebtedness or lease rentals shall be deposited
cr into the Principal and Interest Account and appropriated for payment to the City for its use in order
to pay the principal of and interest on the Section 108 Loan. Tax Increment Revenues received in
any year in excess of the amount necessary to pay the principal of and interest on the Section 108
Loan in said year do not remain pledged, may be transferred to any other account permitted by law,
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 Tax Increment Revenues contained herein.
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GADOPTED at a special meeting of the South Bend Redevelopment Commission held
on October 13, 2000, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend,
Indiana 46601.
SOUTH BEND REDEVELOPMENT COMMISSION
Y•
President
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