HomeMy WebLinkAboutNo. 1098 a preliminary bond authorizing the issuance of tax increment revenue bonds of the redevelopment district of the COSB for the purpose of raising money for redevelopment purposes in the SBCDA allocation area No. 1Ar�
RESOLUTION NO. 1098
A PRELIMINARY BOND RESOLUTION OF THE CITY OF SOUTH BEND
REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF
TAX INCREMENT REVENUE BONDS OF THE REDEVELOPMENT
DISTRICT OF THE CITY OF SOUTH BEND, INDIANA,
FOR THE PURPOSE OF RAISING MONEY FOR
REDEVELOPMENT PURPOSES IN THE SOUTH BEND CENTRAL
DEVELOPMENT AREA, SOUTH BEND ALLOCATION AREA NO. lA
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, the Commission, in accordance with the Act and
s former redevelopment law, adopted Resolution No. 737 on May 10,
1985, ( "Declaratory Resolution "), which declared an area as more
particularly described on the map attached hereto and incorporated
herein as Exhibit A (such area is hereinafter referred to as the
"South Bend Central Development Area ") in the South Bend
j Redevelopment District ( the "Redevelopment District "), which is
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a special taxing district having the same boundaries as the City
of South Bend, Indiana (the "City "), to be blighted within the
meaning of the Act or such former redevelopment law and determined
that it would be of public utility and benefit to acquire such area
and redevelop it pursuant to the South Bend Central Development
Plan, South Bend, Indiana; and
WHEREAS, Resolution No. 737 was amended by Resolution
No. 834, adopted by the Commission on March 11, 1988, and confirmed
by Resolution No. 836, adopted by the Commission on April 15, 1988,
g which resolutions expanded the South Bend Central Development Area
3 by adding Expansion Area No. 1; and
WHEREAS, Resolution No. 737 was further amended by
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Resolution No. 893, adopted by the Commission on October 27, 1989,
which resolution expanded the South Bend Central Development Area
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G by adding Expansion Area No. 2 and Expansion Area No. 3; and
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j WHEREAS, the Commission, by adoption of Resolution No.
737, established the South Bend Central Allocation Area (South Bend
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Allocation Area No. 1A) (the "Allocation Area ") which Allocation
Area has also been expanded so that the boundaries of the
Allocation Area are coterminous with the South Bend Central
Development Area; and
WHEREAS, the Commission, in accordance with the Act has
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previously established the South Bend Central Allocation Area
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j (South Bend Allocation Area No. 1A) Special Fund (the "Allocation
Fund "); and
WHEREAS, IC 36 -7 -14 -25.1 provides that, in addition to
other methods of raising money for property acquisition or
redevelopment in a blighted area, a redevelopment commission may
issue bonds to finance the expenses reasonably incurred in
connection with the acquisition and redevelopment of property; and
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WHEREAS, the Commission finds that the construction of
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the College Football Hall of Fame on land currently owned by the
Commission and which will be located within the South Bend Central
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Development Area (the "Project ") will accomplish significant
redevelopment in the South Bend Central Development Area; and
WHEREAS, the Commission desires to provide funds for
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certain costs that will be incurred in connection with the Project
prior to the financing of the Project anticipated to occur in July,
1993 (the "Project Expenses "); and
WHEREAS, the Commission finds that in order to provide
funds for payment of the Project Expenses, it will be necessary
and in the best interest of the Redevelopment District and the
property and inhabitants thereof to issue bonds of the
Redevelopment District which shall be payable solely from taxes on
real property located in the Allocation Area allocated and
deposited in the Allocation Fund pursuant to the provisions of IC
36- 7 -14 -39 and proceeds from the sale or leasing of property in the
Allocation Area under IC 36- 7 -14 -22 deposited in the Allocation
Fund as required by IC 36- 7 -14 -26 pursuant to the Act, in an
aggregate principal amount not to exceed Three Million Dollars
($3,000,000.00);
NOW, THEREFORE BE IT RESOLVED, by the South Bend
Redevelopment Commission as follows:
1. For the purpose of procuring funds to pay for the
Project Costs, together with a sum sufficient to pay the estimated
cost of all expenses reasonably incurred in connection with such
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Project Costs, including 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 a reserve is reasonably
required; together with the expenses in connection with or on
account of the issuance of bonds therefor, all in and with respect
to the Allocation Area, the City acting for and on behalf of the
Commission, shall make a loan in an amount not to exceed Three
Million Dollars ($3,000,000.00).
2. In order to procure funds for said loan, 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 taxes on real
property located in the Allocation Area allocated and deposited in
the Allocation Fund pursuant to the provisions of IC 36- 7 -14 -39 and
proceeds from the sale or leasing of property in the Allocation
Area under IC 36- 7 -14 -22 deposited in the Allocation Fund as
required by IC 36- 7 -14 -26 (collectively the "Tax Increment ") , 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 Three Million Dollars ($3,000,000.00) (the "Bonds ") , with
a discount not to exceed the discount as set forth in or determined
by the Final Bond Resolution to be adopted by the Commission, and
which amount (together with investment earnings thereon in the
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approximate amount of $25,600) does not exceed the sum of the
Project Costs, together with a sum sufficient to pay the estimated
cost of all expenses reasonably incurred in connection with such
Project Costs, including 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 a reserve is reasonably
required, together with the expenses in connection with or on
account of the issuance of bonds therefor, which estimated cost
shall not exceed Three Million Dollars ($3,000,000.00), plus
investment earnings thereon in the approximate amount of $25,600,
all of which will be provided from the proceeds of the bond issue,
plus investment earnings thereon.
3. 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 the Tax Increment.
4. The Bonds shall mature and be payable no later than
February 1, 2013. The Bonds shall bear interest at a rate or rates
not exceeding eight percent (8 %) per annum (the exact rate or rates
to be determined by bidding or negotiation) . 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.
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5. The Secretary of the Commission is hereby directed
as required by law to cause to be posted and published notice of
the determination of the Commission to issue the Bonds.
6. The President and Secretary of the Commission shall
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certify a copy of this Resolution to the Controller of the City.
7. This Resolution shall be in full force and effect
after its adoption by the Commission.
j ADOPTED at a regular meeting of the South Bend
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Redevelopment Commission held on the 18th day of September, 1992,
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1308 County -City Building, 227 W. Jefferson Boulevard, South Bend,
Indiana.
CITY OF SOUTH BEND REDEVELOPMENT COMMISSION
By:
Paula N. Auburn, President
ATTEST:
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Michael Donoho, Secretary
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