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HomeMy WebLinkAboutNo. 0903 authorizing the issuance of redevelopment district bonds for the purpose of procuring funds to pay for cost of property acquisition and redevelopment in the Studebaker Corridor Development AreaI-I.- -I,. RESOLUTION NO. 903 rw A PRELIMINARY BOND RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF REDEVELOPMENT DISTRICT BONDS FOR THE PURPOSE OF PROCURING FUNDS TO PAY FOR THE COST OF PROPERTY ACQUISITION AND REDEVELOPMENT IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA WHEREAS, the South Bend Redevelopment Commission (the "Commission ") is the governing body of the South Bend, Indiana Department of Redevelopment (the "Department "), and 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, has previously adopted its Resolution No. 762 (the "Declaratory Resolution ") on January 10, 1986, declaring that an area more particularly described on the map attached hereto and incorporated herein as Exhibit "A" designated by the Commission as the Studebaker Corridor 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 the City of South Bend, Indiana (the "City "), is blighted within the meaning of the Act, establishing the Area as an Allocation Area for purposes of tax incremental financing as authorized by IC 36- 7- 14 -39, and determining that it would be of public utility and benefit to -1- acquire such area and redevelop it pursuant to the Studebaker Corridor Development Plan (the "Development Plan "); and WHEREAS, the South Bend Common Council (the "Common Council ") at its regular meeting on January 27, 1986 adopted its Resolution No. 1398 -86 approving the order of the Plan Commission with regard to the Area which was adopted by said Plan Commission in its Resolution No. 87 on January 21, 1986; and WHEREAS, on February 14, 1986, after notice and a public hearing thereon, the Commission in its Resolution No. 764 confirmed the Declaratory Resolution; and WHEREAS, said Declaratory Resolution was subsequently, after approval of the Plan Commission and the Common Council, as described herein, amended by Resolution No. 801 adopted on April 24, 1987 and by Resolution No. 809 adopted on August 28, 1987, with said amending Declaratory Resolutions being confirmed, after notice and a public hearing, by Resolution No. 804 adopted on June 26, 1987 and Resolution No. 816 adopted on October 23, 1987 respectively; and W HEREAS, the aforementioned Resolutions were adopted by the Commission after the Plan Commission adopted Resolution No. 93 on May 19, 1987 and Resolution No. 94 on September 15, 1987, respectively; and WHEREAS, the aforementioned Resolutions were adopted by the Commission after the Common Council adopted its Resolution No. 1511 -87 on May 26, 1987 and Resolution No. 1536 -87 on September 28, 1987, respectively; and -2- WHEREAS, a petition has been filed under the provisions of IC 6- 1.1 -20 -3 by more than fifty (50) owners of real property subject to AW taxation in the Redevelopment District to authorize and issue bonds of the Redevelopment District payable from a special tax levied upon all of the taxable property in the Redevelopment District in one or more series or issues, in an aggregate principal amount not to exceed Four Million Nine Hundred Thousand Dollars ($4,900,000), for the purpose of procuring funds to pay for the cost of property acquisition and redevelopment in the Area, together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the acquisition and redevelopment of the 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 expenses the Commission may be required to pay as "relocation assistance" under IC 8 -13 -18.5, together with the expenses in connection with or on account of the issuance of bonds therefor; and WHEREAS, the Commission finds that in order to provide funds for payment of the cost of property acquisition and redevelopment in the 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 from a special tax levied upon all of the taxable property in the -3- Redevelopment District in an aggregate principal amount not to exceed Four Million Nine Hundred Thousand Dollars ($4,900,000) (the "Bonds ") ; NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: 1. The Commission shall proceed to undertake the acquisition and redevelopment of the Area in accordance with the Declaratory Resolution and the Development Plan. For the purpose of procuring funds to pay for the cost of property acquisition and redevelopment in the Redevelopment District, together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the acquisition and redevelopment of the Area, including the total cost of all the 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 expenses the Commission may be required to pay as "relocation assistance" under IC 8 -13 -18.5, together with the expenses in connection with or on account of the issuance of bonds therefore, all in and with respect to the Area that has been found and declared to be blighted by the Commission pursuant to the Declaratory Resolution of the Commission, which Redevelopment District was the subject of a petition requesting the issuance of bonds by the Commission to procure funds for the above- described activities, filed with the Commission, and which the Commission finds to be sufficient and in compliance with IC -4- 6- 1.1 -20 -3, the Commission shall make a loan in an amount not to exceed Four Million Nine Hundred Thousand Dollars ($4,900,000). In order to procure the 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 a special tax (the "Special Tax ") levied upon all of the taxable property in the Redevelopment District, which district is a special taxing district including all of the territory in the City and deposited in the Redevelopment Special Taxing District Bond Fund, which bonds shall be issued in the name of the Commission, for and on behalf of the Redevelopment District, in an aggregate principal amount not to exceed Four Million Nine Hundred Thousand Dollars ($4,900,000), with a discount not to exceed three percent (3%), and which amount does not exceed the cost of property acquisition and redevelopment in the Area, together with a sum sufficient to pay the estimated cost of all expenses reasonably incurred in connection with the acquisition and redevelopment of the Area, including the total cost of all land and rights of way and other property to be acquired and redeveloped, all necessary architecture, engineering, legal, financing, accounting, advertising, bond discount and supervisory expenses, capitalized interest and expenses the Commission may be required to pay as "relocation assistance" under IC 8 -13 -18.5, together with the expenses in connection with or on account of the issuance of bonds therefore, which estimated cost is Four Million MI: Nine Hundred Thousand Dollars ($4,900,000) all of which will be provided from the proceeds of the bond issue. The Bonds shall not constitute a corporate obligation or indebtedness of the City but shall constitute an obligation and an indebtedness of the Redevelopment District as a special taxing district. The Bonds, together with interest thereon, shall be payable only out of the Special Tax. The Bonds shall mature and be payable in various amounts serially, not to exceed twenty -one (21) annual series beginning 1992. The Bonds shall bear interest at a rate or rates not exceeding twelve percent (12 %) per annum, the exact rate or rates to be determined by bidding. 2. The Secretary of the Commission is hereby directed, as required by law, to cause to be posted and published notice of the filing of the petition requesting the issuance of the Bonds and notice of the determination of the Commission to issue the Bonds. 3. The Secretary of the Commission shall certify a copy of this Resolution to the Clerk of the City. 4. This Resolution shall be in full force and effect after its adoption by the Commission. CUM ADOPTED AND APPROVED at a meeting of the South Bend Redevelopment 400 Commission held on the 27th day of December, 1989, at the office of the Commission located at 1200 County -City Building, 227 West Jefferson Blvd., South Bend, Indiana 46601. A C Roman J. Piasect i, Secretary 12 -26 -89 SOUTH BEND REDEVELOPMENT COMMISSION By: �- F. "-,Jay Nimtz, resident-- - -7-