HomeMy WebLinkAboutNo. 1572 establishing certain funds and accounts in connection with amended and restated lease dated 5/1/97, as amended by an addendum to lease dated 1/15/98, between SBRC and SBRA relating to the Palais Royale/Morris Civic Center ProjectRESOLUTION NO. 1572
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
COMMISSION ESTABLISHING CERTAIN FUNDS AND ACCOUNTS
IN CONNECTION WITH THE AMENDED AND RESTATED LEASE
DATED AS OF MAY 1, 1997, AS AMENDED BY AN ADDENDUM TO
LEASE DATED AS OF JANUARY 15,1998, BETWEEN THE SOUTH
BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND
REDEVELOPMENT AUTHORITY RELATING TO THE PALAIS
ROYALE/MORRIS CIVIC CENTER PROJECT AND OTHER
RELATED MATTERS
WHEREAS, the South Bend Redevelopment Authority (the "Authority ") has been
created pursuant to IC 36 -7 -14.5 as a separate body, corporate and politic, and as an instrumentality
of the City of South Bend to finance local public improvements for lease to the South Bend
Redevelopment Commission (the "Commission "); and
WHEREAS, the Authority has previously adopted a resolution indicating its intent
to issue bonds pursuant to IC 36- 7- 14.5 -19 to be known as the "South Bend Redevelopment
Authority Lease Rental Revenue Bonds ( Palais Royale/Morris Civic Center Project)" (the 'Bonds "),
the proceeds of which are to be used to finance the costs of. (i) acquiring, constructing, renovating
and equipping the Morris Performing Arts Center which includes the Morris Civic Center and certain
portions of the Palais Royale facility in South Bend, Indiana, and (ii) issuing the Bonds (collectively,
the "Project "); and
WHEREAS, the Authority intends to lease the Project to the Commission pursuant
to a lease dated as of May 1, 1997 (the "Original Lease "), which Original Lease was heretofore
approved by this Commission; and
WHEREAS, the State Board of Tax Commissioners issued its Order approving the
Original Lease pursuant to IC 6 -1.1- 18.5 -8 on July 16, 1997; and
WHEREAS, the President and Secretary of the Commission have executed and
attested, respectively, the Original Lease and Notice of Execution and Approval of the Original
Lease was published on Friday, August 1, 1997, in accordance with IC 36 -7 -14 -25.2; and
WHEREAS, no petition objecting to the execution of the Original Lease was filed
with the County Auditor within the time period provided by law; and
WHEREAS, the Commission had adopted a resolution of even date which provides
for certain amendments to the Original Lease but does not affect the maximum term or the maximum
lease rental provided in the Original Lease (as amended, the "Lease "); and
WHEREAS, it is necessary for the Commission to establish certain funds and
accounts for the payment of the rentals owed by the Commission pursuant to said Lease;
NOW, THEREFORE, BE IT RESOLVED, by this South Bend Redevelopment
Commission as follows:
Section 1. There is hereby created and established a Redevelopment District
Bond Fund to consist of a Morris Civic Center Project Principal and Interest Account and such other
accounts as the Commission shall from time to time establish.
Section 2. The Commission shall levy in each calendar year beginning in the
second year prior to the first calendar year in which the Commission is required to pay lease rentals
pursuant to the Lease, a special tax upon all of the taxable property in the City of South Bend
Redevelopment District in a total amount sufficient, together with all other funds in the Morris Civic
Center Project Principal and Interest Account deposited into such account from any other sources
(other than such special taxes) during the previous 12 calendar months prior to August 1 of such
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calendar year, to pay all lease rental payments payable in the 12 -month period beginning on July 1
of the following calendar year pursuant to Section 4 of the Lease (the "Three Payment Test "). In
determining the amount of the special tax required to pay such lease rentals payments as described
herein, the Commission may also take into account and may correspondingly offset the amount of
such special tax by the amount of the funds on deposit in the Reserve Fund and the Excess Funds
Account of the Operation and Reserve Fund established pursuant to the Trust Indenture between the
Authority and Norwest Bank Indiana, N.A, dated as of March 1, 1998 (the "Trust Indenture "), only
to the extent such funds have not been previously used to offset the amount of the special tax or will
not otherwise have to be applied by the Authority to meet its obligations under the Trust Indenture
for the next following twelve (12) month period. Such taxes shall be deposited in the Morris Civic
Center Project Principal and Interest Account and such taxes and any other funds in the Morris Civic
Center Project Principal and Interest Account shall be irrevocably pledged for the purposes set forth
in this Resolution.
Section This Resolution shall be in full force and effect after its adoption by
the Commission.
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ADOPTED at a meeting of the South Bend Redevelopment Commission held on
January 16, 1998, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana
MOT01111
ATTEST:
Secretary
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SOUTH BEND REDEVELOPMENT COMMISSION
By: _
President
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