HomeMy WebLinkAboutNo. 2981 appropriating/transferring TIF revenues from Allocation Area No. 2 fund to the SSDA Allocation Area No. 1 and other related mattersRESOLUTION NO. 2981
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
APPROPRIATING AND TRANSFERRING TAX INCREMENT FINANCING
REVENUES FROM ALLOCATION AREA NO.2 FUND TO THE SOUTH SIDE
DEVELOPMENT AREA ALLOCATION AREA NO. 1 AND OTHER RELATED
MATTERS
WHEREAS, the South Bend Redevelopment Commission (the "Commission "), the
governing body of the Department of Redevelopment of the City of South Bend, Indiana (the "City ")
and the City of South Bend, Indiana, Redevelopment District, exists and operates under the
provisions of Indiana Code § 36 -7 -14, as amended (the "Act "); and
WHEREAS, on November 1, 2002, the Commission adopted Resolution No. 1914 (the
"Declaratory Resolution ") declaring the South Side Development Area (the "Area ") to be an area
needing redevelopment within the meaning of the Act and designated the Area as the South Side
Development Area Allocation Area No. 1 ( "Allocation Area No. I") for purposes of tax increment
financing pursuant to the Act; and
WHEREAS, on November 19, 2002, the Area Plan Commission of St. Joseph County ( "Plan
Commission ") issued its written order approving the Declaratory Resolution by the adoption of Plan
ILI Commission Resolution 142 -02, in accordance with Indiana Code § 36 -7- 14-16; and
WHEREAS, on November 25, 2002, the Common Council of the City approved the order of
the Plan Commission through the adoption of Common Council Resolution No. 3136 -02; and
WHEREAS, on December 20, 2002, the Commission held a duly noticed public hearing, in
accordance with Indiana Code § 36 -7 -14-17 and Indiana Code § 5 -3 -1; and
WHEREAS, following said hearing, the Commission adopted Resolution No. 1928
confirming the Declaratory Resolution; and
WHEREAS, on July 27, 2004, the Commission adopted Resolution 2073 amending the
Declaratory Resolution to create a separate allocation area ( "Allocation Area No. 2 ") within the Area
to allow for certain improvements to occur at the intersection of Ireland and Michigan Streets and for
the purpose accounting for the tax increment revenues directly resulting from such improvements
( "Project Tax Increment Revenues "); and
WHEREAS, on July 27, 2004 and January 20, 2006, the Commission adopted Resolution
No. 2074 and Resolution No. 2225, respectively (collectively, the "District Bond Resolution ")
authorizing the issuance of redevelopment district bonds (the "District Bonds ") in an amount not to
exceed Two Million Eight Hundred Eight Hundred Thousand and 00 /100 Dollars ($2,800,000.00)
payable solely from Project Tax Increment Revenues to provide for certain public improvements to
the intersection of Ireland and Michigan Streets, as more particularly described in said resolutions;
and
WHEREAS, on August 20, 2004, the Commission adopted Resolution No. 2087 (the
"Pledge Resolution ") pledging Project Tax Increment Revenues for the payment of taxable economic
development bonds originally issued in an aggregate principal amount of Three Million Five
Hundred Thousand and 00 /100 Dollars ($3,500,000.00) (the "EDC Bonds" and with the District
Bonds, the "Bonds "), which pledge ranks junior and subordinate the District Bonds, if and when
issued; and
WHEREAS, the District Bonds were issued on February 8, 2006 in an aggregate principal
amount of Two Million Four Hundred Forty Thousand and 00 /100 Dollars ($2,440,000) at a variable
interest rate, with a maximum rate of eight percent (8.0 %); and
WHEREAS, the District Bonds are secured by the Trust Indenture (the "District Bond
Indenture ") between the Commission and The Bank of New York Trust Company, N.A. (the
"District Bond Trustee ") dated February 1, 2006 and by a Letter of Credit issued pursuant to the
Reimbursement Agreement dated February 1, 2006 between Fifth Third Bank and Anchor South
Bend, LLC (collectively, the "Letter of Credit), which Letter of Credit requires the optional
redemption of the District Bonds as set forth in Exhibit A; and
WHEREAS, EDC Bonds were issued on July 13, 2005 at a fixed interest rate of eight
percent (8.0 %) with interest payable on February 1, 2006, and on each February 1 and August 1
thereafter and maturing on February 1, 2025 with mandatory sinking fund payments due on February
1 in the years 2009 through and including 2025, a schedule of which debt service payments is as set
forth at Exhibit B; and
WHEREAS, the Pledge Resolution requires that on January 15 and July 15 of each year all
Project Tax Increment Revenues, to the extent they are available, must be deposited in the Allocation
Area No. 2 Fund and further set aside and deposited into the Bond Principal and Interest Account of
the Allocation Area No. 2 in an amount necessary to pay (i) the principal of and interest on the
District Bonds currently or scheduled to be due and expected to be paid from the Project Tax
Increment Revenues for that bond year along with any shortfall from previous bond years with
respect to the District Bonds and (ii) the principal of and interest on the EDC Bonds currently or
scheduled to be due and expected to be paid from the Project Tax Increment Revenues for that bond
year along with any shortfall from previous bond years with respect to the EDC Bonds, and only
thereafter may excess Project Tax Increment Revenues be used for any other purpose set forth in
Section 39 of the Act; and
WHEREAS, the District Bonds were fully paid and discharged on July 2, 2010; and
WHEREAS, the EDC Bonds were fully paid and discharged on January 25, 2011; and
WHEREAS, the funds which are now on deposit in Allocation Area No. 2 Fund are excess
Project Tax Increment Revenues and may now be used for the other purposes set forth in Indiana
Code § 36- 7- 14 -39; and
WHEREAS, the Commission desires to authorize all funds received by the Commission for
Allocation Area No. 2 Fund be transferred to the Allocation Area No. 1 Fund; and
WHEREAS, the proposed appropriation and transfer of funds from Allocation Area No. 2
Fund to Allocation Area No. 1 Fund are not for the operating expenses of the Commission; and
WHEREAS, such appropriations are subject to the provisions of Indiana Code § 6- 1.1 -18-
5; and
WHEREAS, on December 13, 2011, the Commission adopted Resolution 2974 setting a
public hearing on said appropriation and transfer for 4:00 p.m. on January 24, 2012 and authorizing
the Secretary of the Commission to duly publish notice of said hearing; and
WHEREAS, the Secretary of the Commission has caused notice of said hearing on said
appropriation and transfer to be published in accordance with law; and
WHEREAS, such public hearing was held at the Commission's meeting at 4:00 p.m. on
January 24, 2012, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana
46601, at which all taxpayers and interested persons had an opportunity to appear and express their
views as to such appropriation and transfer; and
WHEREAS, the Commission now desires to approve said appropriation and transfer in a
total amount estimated not to exceed One Million Four Hundred Thousand and 00 /100 Dollars
($1,400,000.00);
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND
REDEVELOPMENT COMMISSION AS FOLLOWS:
The Commission hereby finds that there are insufficient funds available or provided
for in the existing budget and tax levy which may be applied to those expenses and expenditures
allowed by Indiana Code § 36- 7- 14 -39.
2. The Commission hereby appropriates and transfers all funds in Allocation Area No. 2
Fund to Allocation Area No. I Fund for further appropriation by the Commission in accordance with
Indiana Code § 36- 7- 14 -39, which amount is not expected to exceed the amount of One Million
Four Hundred Thousand and 00 /100 Dollars ($1,400,000.00).
3. Such appropriations shall be in addition to all the appropriations provided for in the
existing budget and levy and shall continue in effect until the completion of the activities provided
for by such further appropriations from Allocation Area No. 1. Any surplus of such proceeds shall
be credited to the proper fund as provided by law.
4. The President and /or the Secretary of the Commission are hereby authorized and
directed to certify a copy of this Resolution together with such other proceedings and actions as may
be necessary to the St. Joseph County Auditor for certification to the Indiana Department of Local
A
Government Finance for the purpose of obtaining its approval of the appropriation and transfer
herein made.
ADOPTED at a regular meeting of the South Bend Redevelopment Commission held on
January 24, 2012 at 1308 County -City Building, 227 W. Jefferson Boulevard, South Bend, Indiana
46601.
ATTEST:
Signature
Nancy N. King, Secretary
Printed Name and Tide
SOUTH BEND REDEVELOPMENT
OMMISSION
Signature
Marcia I. Jones, President
Printed Name and Tide
EXHIBIT A
SOUTH SIDE DEVELOPMENT AREA #2 (COMMONS) - FUND 431
C2011 BUDGET SUMMARY
Debt Service:
Debt Service Reserve Increase
Debt Service Payments
Total Debt Service
Infrastructure Projects Underway, Not Completed
Total Infrastructure Underway, Not Completed
Other Activities:
Transfer to SSDA #1 (Fund 430)
Total Other Activities
Development Opportunity Reserve:
Infrastructure Planned:
(Could include the following projects)
Total Infrastructure Planned
Total Appropriation
L
2012
Appropriation
1,400,000
1,400,000