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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 -2- \rlhill \sthbnd \airport \1u- 945;cl;June 27, 1990; 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 -3- \rlhill \sthbnd \airport \1u- 945;cl;June 27, 1990; 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, -4- \rlhill \sthbnd \airport \1u- 945;cl;June 27, 1990; 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 -5- \rlhill \sthbnd \airport \1u- 945;cl;June 27, 1990; 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 \rlhill \sthbnd \airport \1u- 945;cl;June 27, 1990; ,II) i- j i " it T ,I li \\ I 1\I 1 � r ap A " Area Boun,dar ic d I' I� I II I. I 11 f) to li 1 I , , :e )• - ; t � ".�? — I 1! J I � 1 ��------------ C~ i_-- ' - -� I I ' I I 1� .b 1� 1 ' � I i l I I t 1 1 / 11 - 1 11 1 , ' r `• e, erra 1.. .,auoo P-Ai. 1.. F r_ Will- 11 1 1 .rCw.Y .re.OrLL .I..p.i I DUF Ll Ulfl LUL rctr(ittr n !.. r I I I N L— - - )1 cnr.. ... ]� ' —.--�� . er 11 ; I�,Ip�'aiO�i `4 )I I e I '