HomeMy WebLinkAboutNo. 0945 preliminary bond resolution authorizing issuance of tax increment revenue bonds of the redevelopment district of COSB for purpose of raising money for property acquisition/redevelopment in or serving the AEDAAA No. 1RESOLUTION NO. 945
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 PROPERTY
ACQUISITION AND REDEVELOPMENT IN OR SERVING THE AIRPORT
ECONOMIC DEVELOPMENT AREA, ALLOCATION AREA NO. 1
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 February 23, 1990, the Commission adopted
and approved a resolution (the "Declaratory Resolution ") declaring
that an area more particularly described on the map attached hereto
and incorporated herein as Exhibit "A" designated by the Commission
as the Airport Economic Development Area (the "Area ") in the South
Bend Redevelopment Special Taxing District (the "Redevelopment
District ") which is a special taxing district having the same
boundaries as South Bend, Indiana (the "City ") , is an economic
development area within the meaning of the Act and determined that
it would be of public utility and benefit to acquire the Area and
redevelop it pursuant to an economic development plan entitled
Airport Economic Development Area Development Plan (the "Economic
Development Plan "); and
WHEREAS, on May 15, 19901 the Area Plan Commission of
St. Joseph County (the "Plan Commission ") , which is the duly
designated and acting planning body of the City, adopted and
approved a resolution determining that the Declaratory Resolution
and the Economic Development Plan conform to the plan of
development for the City and approving, ratifying and confirming
the Economic Development Plan; and
WHEREAS, on June 11, 1990, the Common Council of the City
adopted Resolution No. 90 -33 which approved the Resolution of the
Plan Commission, as adopted on May 15, 1990 and also approved the
Commission's determination that the Area is an economic development
area under the Act; and
WHEREAS, on June 27, 1990 after notice and a public
hearing thereon, the Commission confirmed the Declaratory
Resolution by the adoption of a Confirmatory Resolution (the
Declaratory Resolution as confirmed by the Confirmatory Resolution
shall hereinafter be referred to as the "Declaratory Resolution ");
and
WHEREAS, the Commission, in accordance with the Act, has
previously established the Airport Economic Development Area
Allocation Area No. 1 (the "Allocation Area ") which has boundaries
coterminous with the Area; and
WHEREAS, the Commission, in accordance with the Act, has
previously established the City of South Bend, Department of
Redevelopment, Airport Economic Development Area, Allocation Area
No. 1 Allocation Fund (the "Allocation Fund "); and
WHEREAS, the Commission finds that in order to provide
funds for payment of the cost of property acquisition and
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redevelopment in or serving the Allocation Area, 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 Nine Hundred Fifty
Thousand Dollars ($950,000).
NOW, THEREFORE BE IT RESOLVED, by the South Bend
Redevelopment Commission as follows:
1. The Commission shall proceed to undertake property
acquisition and redevelopment in or serving the Allocation Area in
accordance with the Declaratory Resolution and the Economic
Development Plan. For the purpose of procuring funds to pay for
the cost of property acquisition and redevelopment in or serving
the Allocation Area, together with a sum sufficient to pay the
estimated cost of all expenses reasonably incurred in connection
with the property acquisition and redevelopment in or serving the
Allocation Area, including the total cost of all land,
rights -of -way, and other property to be acquired and redeveloped,
all reasonable and necessary architectural, engineering, legal,
financing, accounting, advertising, bond discount and supervisory
expenses, capitalized interest and a debt service reserve for the
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bonds to the extent that the Commission determines that a reserve
is reasonably required and expenses the Commission may be required
or permitted to pay as "relocation assistance" under IC 8- 23 -17,
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 Nine
Hundred Fifty Thousand Dollars ($950,000).
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 (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 Nine
Hundred Fifty Thousand Dollars ($950,000) (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
approximate amount of $15,000) does not exceed the cost of property
acquisition and redevelopment in or serving the Allocation Area,
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together with a sum sufficient to pay the estimated cost of all
expenses reasonably incurred in connection with the property
acquisition and redevelopment in or serving the Allocation Area,
including the total cost of all land, rights -of -way, and other
property to be acquired and redeveloped, 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 and expenses the Commission may be required or permitted
to pay as "relocation assistance" under IC 8- 23 -17, together with
the expenses in connection with or on account of the issuance of
bonds therefor, which estimated cost shall not exceed Nine Hundred
Fifty Thousand Dollars ($950,000), plus investment earnings thereon
in the approximate amount of $15,000, all of which will be provided
from the proceeds of the bond issue, plus investment earnings
thereon.
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.
The Bonds shall mature and be payable no later than
August 1, 1997. 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
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accordance with the terms set out in the Final Bond Resolution of
the Commission.
2. 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.
3. The President and Secretary of the Commission shall
certify a copy of this Resolution to the Controller of the City.
4. This Resolution shall be in full force and effect
after its adoption by the Commission.
ADOPTED AND APPROVED at a rescheduled regular meeting of
the South Bend Redevelopment Commission held on the 27th day of
June, 1990, at the office of the Commission, 1200 County -City
Building, 227 W. Jefferson Boulevard, South Bend, Indiana.
CITY OF SOUTH BEND REDEVELOPMENT COMMISSION
By: _
Jay imtz, President
ATTEST:
Roman Piasecki, Secretary
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