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HomeMy WebLinkAboutNo. 1124 amending resolution No. 1118 entitled "authorizing the issuance of bonds on parity with the COSB redevelopment district tax increment revenue bonds of 1985, 1985, 1988 for the purpose of raising money for redevelopment in the SBCAA"RESOLUTION NO. A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AMENDING RESOLUTION NO. 1118 ENTITLED "A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF BONDS ON PARITY WITH THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1985, THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1986 AND THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1988 FOR THE PURPOSE OF RAISING MONEY FOR REDEVELOPMENT IN THE SOUTH BEND CENTRAL ALLOCATION AREA" WHEREAS, the South Bend Redevelopment Commission (the "Commission ") , governing body of the City of South Bend Department of Redevelopment (the "Department ") and the Redevelopment District of the City of South Bend, Indiana, exists and operates under the provisions of IC 36 -7 -14, as amended from time to time (the "Act "); and WHEREAS, on December 4, 1992, the Commission adopted and approved Resolution No. 1118 entitled "A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF BONDS ON PARITY WITH THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1985, THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1986 AND THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1988 FOR THE PURPOSE OF RAISING MONEY FOR REDEVELOPMENT IN THE SOUTH BEND CENTRAL ALLOCATION AREA" (the "Final Bond Resolution "); and WHEREAS, the Final Bond Resolution sets forth the terms and conditions for the issuance of the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1992 in an aggregate principal amount of Two Million Nine Hundred Thousand and 00 /100 Dollars ($2,900,000.00) (the "Bonds "); and WHEREAS, the Final Bond Resolution provides that the Bonds will mature and be payable annually on February 1 in the years 1998 through and including 2013 in various principal amounts; and WHEREAS, the Commission desires to amend the Final Bond Ordinance to provide that the Bonds will mature and be payable on February 1 in the years 1999 through and including 2013 in various principal amounts; and WHEREAS, Section 10 of the Final Bond Resolution authorizes the President of the Commission to execute and deliver a bond purchase agreement and the Commission desires to amend Section 10 of the Final Bond Resolution to permit the President or Vice - President of the Commission to execute and deliver a bond purchase agreement; and WHEREAS, the Commission desires to further amend the Final Bond Resolution to authorize the issuance of bond anticipation notes ( "BANs ") to the Indiana Bond Bank pursuant to the provisions of Indiana Code 5 -1.5 to finance the Project (as that term is defined in the Final Bond Resolution) which BANs shall be payable from the proceeds of the Bonds, from the Tax Increment (as that term is defined in the Final Bond Resolution) and any other source available to the Commission and to authorize the refunding of said BANs; however, the payment of the BANS from the Tax Increment shall be junior and subordinate to the payment of the 2 Series 1985 Bonds, the Series 1986 Bonds and the Series 1988 Bonds (as such bonds are defined in the Final Bond Resolution) and any other bonds which by their terms rank on a parity with such bonds; and WHEREAS, the Commission desires further to amend the Final Bond Resolution to change the references to the Bonds from the "Series 1992 Bonds" to the "Series 1993 Bonds;" NOW THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission, as follows: Section 1. Section 1 of the Final Bond Resolution is amended to provide that the Bonds shall mature and be payable on February 1st, in the years and amounts as follows: Year Amount Year Amount 1999 $100,000.00 2007 200,000.00 2000 100,000.00 2008 300,000.00 2001 100,000.00 2009 300,000.00 2002 100,000.00 2010 300,000.00 2003 100,000.00 2011 300,000.00 2004 100,000.00 2012 300,000.00 2005 100,000.00 2013 300,000.00 2006 200,000.00 Section 2. The Final Bond Resolution is further amended to provide that all references to the "City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1992" and the "Series 1992 Bonds" are hereby changed to the "City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1993" and the "Series 1993 Bonds." Section 3. The Final Bond Resolution is further amended to delete Section 10 and replace with the following: 3 SECTION 10. The Bonds shall be sold by private negotiated sale, as provided by IC 36- 7- 14- 25.1(g), to the purchaser or purchasers at a price of par in accordance with the Purchase Agreement. The President or Vice - President of the Commission is hereby authorized to execute and deliver the Purchase Agreement substantially in the form attached hereto as Exhibit E, together with such changes and modifications as may be approved by the President or Vice - President (with execution by the President or Vice - President to be conclusive evidence of such approval) , based upon the recommendation of the financial advisor to the Commission with respect to the interest rate on the Bonds and other matters contained therein. The President or Vice - President is further authorized to carry out, on behalf of the City and Commission, the terms and conditions set forth in the Purchase Agreement consistent with the provisions of this Resolution. Section 4. The Final Bond Resolution is further amended to add Section 1.1 as follows: Section 1.1. In anticipation of the issuance and sale of the Series 1992 Bonds authorized herein, and to provide interim financing to apply to the cost of the Project, the Controller is hereby authorized and directed to have prepared and to issue and sell to the Indiana Bond Bank (the "Bond Bank ") negotiable BANs of the Redevelopment District, in an amount not to exceed Two Million Nine Hundred Thousand Dollars ($2,900,000), to be designated "City of South Bend Redevelopment District Tax Increment Revenue Bond Anticipation Notes of 1992." The BANS shall be issued in fully registered form, shall be numbered consecutively from 92R -1 upwards, shall be issued in denominations of One Hundred Thousand Dollars ($100,000) or integral multiples thereof, shall be dated as of the date of issuance of the BANs, and shall bear / interest at a rate or rates not exceeding ercen S/ k p 00 %) per annum (the exact rate of interest to be determined under the terms of a bond anticipation note purchase agreement between the Indiana Bond Bank (the "Bond Bank ") and the Commission to be entered into prior to the sale of the BANs to the Bond Bank), payable on February 1 and August 1, commencing on the February 1 or August 1 which immediately follows the date of delivery of the BANs. The BANs may be sold at a discount not exceeding one percent (1.00 %) of the par amount thereof. The initial BANs delivered will mature on December 31, 1994. Each subsequent BAN delivered will bear the same maturity date as the initial BANs. The BANs shall be subject to renewal or extension, subject to the 4 limitations set forth below, at an interest rate not to exceed six percent (6.00 %) per annum, with the exact rate to be determined as described above. The term of the BANs and all renewal BANs may not exceed five years from the date of delivery of the initial BANs. The BANs shall be issued pursuant to the provisions of Indiana Code 5- 1.5- 8 -6.1, and the principal thereof shall be refunded and retired out of the proceeds from the issuance and sale hereunder of the 1993 Bonds. The principal of the BANs, and the principal and interest of BANs prepaid in accordance with the optional prepayment of the BANs provided for hereinbelow, shall be refunded by the issuance of the 1993 Bonds pursuant to, and in the manner prescribed by the Act. The interest on the BANs shall be payable from the Tax Increment, subject to the prior lien thereon of the Series 1985 Bonds, Series 1986 Bonds, Series 1988 Bonds and any other bonds which by their terms rank on a parity thereon. The Controller shall be designated as the Registrar and Paying Agent with respect to the BANs and is charged with the performance of all duties and responsibilities of the Registrar and Paying Agent as provided herein. Principal and interest on the BANs shall be payable at the office of the Controller. The BANs are prepayable at the option of the Commission, in whole or in part, at any time upon seven days' notice to the owner of the BANs without any premium. In the case of prepayment, the principal and accrued interest due on the BANs shall be paid only from proceeds of the 1993 Bonds or other funds available to the Commission, but not from the Tax Increment if the prepayment date occurs on a date other than February 1 or August 1. The BANs shall be executed and authenticated in accordance with Section 1 contained hereinabove, and the Mayor and Controller are hereby authorized to execute and deliver the BANs to the Bond Bank as set forth in Section 13 hereinbelow. The President or the Vice - President of the Commission are hereby authorized and directed to executed a bond anticipation note purchase agreement in such form or substance as they shall approve acting upon the advice of counsel. The President or Vice - President of the Commission or the Controller may also take such other action or deliver such other certificates as are necessary or desirable in connection with the issuance of the BANs as they deem necessary or desirable in connection therewith, including, but not limited to obtaining a legal opinion as to the validity of the BANs from Baker & Daniels, South Bend, Indiana, 5 pursuant to Section 11 hereinbelow. It shall not be necessary for the Commission to repeat the procedures for the issuance of the Series 1993 Bonds, as the procedures followed before the issuance of the BANs are for all purposes sufficient to authorize the issuance of the Series 1993 Bonds and the use of the proceeds to repay the BANs. The proceeds derived from the sale of the BANs shall be and are hereby set aside for the application to the costs of the Project, together with the expenses necessarily incurred in connection therewith including the expenses incurred in the issuance of the BANs, into the Redevelopment District (South Bend Central Development Allocation Area) 1992 Capital Fund pursuant to Section 7 hereinbelow. Notwithstanding the provisions of Section 7, if BANs are issued, that portion of the proceeds of the Series 1993 Bonds required to be deposited into the Redevelopment District (South Bend Central Development Allocation Area) 1992 Capital Fund shall be used to refund the BANs and are hereby pledged for such purpose. Section 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 December 18, 1992, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana, 46601. SOUTH BEND REDEVELOPMENT COMMISSION By: Paula N. Auburn, President ATTEST: \ d Michael Donoho, Secretary rrrompol \sthbend \hallofam \rcfinanc.ing \amendres.bon;12 /17/92 N]