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HomeMy WebLinkAboutNo. 0829 approving an addendum to the official statement concerning the City of South Bend redevelopment district tax increment revenue bonds of 1988RESOLUTION NO. 829 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION APPROVING AN ADDENDUM TO THE OFFICIAL STATEMENT CONCERNING THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1988 WHEREAS, on December 30, 1987, the South Bend Redevelopment Com- mission (the "Commission ") adopted a resolution entitled "A RESOLU- TION OF THE SOUTH BEND REDEVELOPMENT COMMISSION RELATING TO THE DIS- TRIBUTION OF INFORMATION AND CONFIRMING RECOMMENDATIONS REGARDING THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1988" (Resolution No. 827); and WHEREAS, Resolution No. 827 approved, among other things, the Official Statement dated January 5, 1988 (the "Official Statement ") prepared by Springsted Incorporated, as financial advisor to the Commission, relating to the issuance of the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1988 (the "Bonds ") which included the Official Notice of Sale and authorized and directed Springsted Incorporated to cause to be distributed such Official Statement to all parties who may be interested in bidding on the Bonds; and WHEREAS, the Official Notice of Sale of the Bonds provided that the date of sale was to be January 19, 1988 (Tuesday) at 12:00 noon, Eastern Standard Time with the sale taking place at the office of the City Controller; and WHEREAS, due to the Official Notice of Sale not being published in the manner as required by law, it was necessary to cancel the scheduled sale of the Bonds and to reschedule the date of the sale of co the Bonds subsequent to publication of the Notice of Sale as required by law; and WHEREAS, it is necessary to modify the Official Statement and Official Notice of Sale to provide for the rescheduled date for the sale of the Bonds of February 8, 1988; and WHEREAS, as a result of the introduction of legislation in the 1988 Session of the Indiana General Assembly, it is also necessary to modify the Official Statement to disclose such legislation and to provide supplemental cash flow and revenue projections; and WHEREAS, an Addendum to the Official Statement dated January 21, 1988 (the "Addendum ") making the required modifications to the Official Statement and the Official Notice of Sale as described herein was prepared by Springsted Incorporated and provided to the Commission, a copy of which Addendum is attached hereto as Exhibit "A" NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT COMMISSION THAT: Section 1: The Addendum is hereby approved in the form presented to the Commission at this meeting, and Springsted Incorporated is hereby authorized and directed to cause to be distributed said Addendum to all parties who in their judgment may be interested in -2- bidding on the Bonds, and the Secretary of the Commission shall place a copy of said Addendum with the minutes of this meeting. Section 2: This resolution shall be in full force and effect from and upon compliance with the procedures required by law. Adopted at a meeting of the Commission held on the 22nd day of January, 1988, in the offices of the Commission located on the Twelfth (12th) Floor of the County -City Building, 227 W. Jefferson Boulevard, South Bend, Indiana, 46601. ATTEST: W - k4at Roman Piasecki, Secretary SOUTH BEND REDEVELOPMENT COMMISSION -3- VA FAA SPRINGSTED PUBLIC FINANCE ADVISORS 251 North Illinois Street, Suite 1510 Indianapolis, Indiana 462041942 317.237.3636 Fax 317.237.3639 TO OFFICIAL STATEMENT DATED JANUARY 5, 1988 $1,800.,000 CITY OF SOUTH BEND, INDIANA REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1988 Rating: AAA /Aaa (AMBAC Indemnity Insured) Sale Date and Time: Due to the failure of a local newspaper to publish the notice of sale in the manner legally required, the sale of this Issue has been rescheduled to: MONDAY, FEBRUARY 8, 1988, AT 12.00 NOON, EASTERN STANDARD TIME All other terms and conditions of sale remain unchanged. Procedures for Property Assessment, Tax Levy and Collection, and Tax Abatement: Since the date of the Official Statement, Senate Bill 320 has been introduced in the 1988 Session of the Indiana General Assembly. Senate Bill 320 establishes a property tax credit for those taxpayers in tax increment finance ( "TIF") allocation areas whose property taxes are allocated to TIF allocation funds. The purpose of the bill is to eliminate the higher net property tax liability that would otherwise apply to such taxpayers as a result of the denial of the property tax replacement credit as described on page 8 of the Official Statement. The credit given to such taxpayers in TIF allocation areas reduces the amount of incremental property taxes payable into TIF allocation funds by an amount up to twenty percent of the property tax increment available. In addition, the bill makes technical corrections in redevelopment statutes. Cash flow and revenue projections which supplement those on pages 17 and 18 of the Official Statement are attached, showing the estimated effect of the reduction in property taxes allocable to the City's Allocation Area Special Fund that would occur if Senate Bill 320 is passed. These projections also include refinements for current interest rate estimates and revenue stream projections. Dated: January 21, 1988 Home Office: 85 East Seventh Place, Suite 100 Saint Paul, Minnesota 55101-2143 612.223.3000 Fax: 612.223.3002 Wisconsin Office: 500 Elm Grove Road, Suite 101 Elm Grove, Wisconsin 53122.0037 414.782.8222 Fax: 414.782.2904 EXHIBIT "A" co d Co 4` 0) ro O N H M O) tO w to q' O Ln M a tO M Ln I­q• w r ` n > 7 .r N Ln 1- Ln W N q• O) O) .--I O .--I to .-+ N .--I f- .-+ CIO O 4- a O. M . tO. M . to M . ll. - . Clt tD O. Q. O. M . q. M . U ro L —m w f-N Mto m:\t771, NtO I,N mw T C r 7 CD Ln M O CO f- O n tb O M f-, .- +q'CO.• -I of N L. tr 7 N N q't0O MIS NtO.•rn Nfl MCO M0)'": I 7 C C W 7 U .--t .--I .--I N N M M q• q- N N t0 co 1 CO ro F- N C7 r N O_ N 000 00 OM fist Ln t1') NN LAM Ln .- -I d 7 ro �•+ •-I ... 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The City Controller will consider award of the Bonds immediately following the opening of bids, subject to approval of the interest rate by the State Board of Tax Commissioners if any interest rate or the net effective rate exceeds eight percent (8%) per annum. If no acceptable bid is received at the time fixed for the sale of the Bonds, then the sale may be continued from day - today for a period not to exceed thirty (30) days without readvertising. During the continuation of the sale, no bid shall be accepted which offers an interest cost which is equal to or higher than the best bid received at the time fixed for the sale in the Bond Sale Notice. The acceptability of a bid is within the sole discretion of the Controller. DETAILS OF THE BONDS The Bonds will be dated February I, 1988, and will bear interest payable on August I, 1988 and Alliftemiannually thereafter on February I and August I of each year. Interest will be computed on the sis of a 360 -day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. The Bonds shall be issued in fully registered form in the denomination of Five Thousand Dollars ($5,000) or in integral multiples thereof (the "Authorized Denominations "). The principal and premium, if any, on the Bonds shall be payable at the principal office of the Paying Agent, and interest on the Bonds shall be paid by check or draft mailed or delivered to the registered owners of the Bonds at the address as it appears on the books for registration and for transfer of the Bonds kept and maintained by the Registrar (the 'Bond Register ") as of the 15th of the month immediately preceding the interest payment date or at any such other address as provided to the Paying Agent in writing by such registered owners. The Bonds shal I mature and be payable on February I st in the amounts and years as follows: $25,000 1993 -1996 $75,000 1997 -1998 $1009000 1999 $150,000 2003 -2004 $125,000 2000 -2002 $775,000 2005 Bonds maturing on or after February 1, 2000 are redeemable in advance of maturity, at the option of the South Bend Redevelopment Commission (the "Commission "), beginning on February I, 1999, in whole or in part (only in Authorized Denominations). If redeemed in whole, the Bonds may be redeemed on February I, 1999 or on any date thereafter. If in part, Bonds may be redeemed in any order of maturity selected by the Commission and within a maturity by lot (in such manner as may be ,,termined by the Registrar) on February 1, 1999 and on any interest payment date thereafter. All Cr shall be at a price of par and accrued interest. In the case of redemption of the Bonds, notice of the call for any such redemption identifying the Bonds, or portions of the Bonds, to be redeemed shall be given by the Registrar on behalf of the Commission by mailing a copy of the redemption notice by registered or certified mail not less than thirty (30) days nor more than sixty (60) days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the Bond Register; provided, however, that failure to give such notice by mailing, or any defect therein, with respect to any such Bond shall not affect the validity of any proceedings for the redemption of other Bonds. SECURITY AND PURPOSE The Bonds do not constitute a corporate obligation or indebtedness of the City, but the same is an obligation of the South Bend Redevelopment District (the "District "), which is a special taxing district having the same boundaries as the City, and is payable solely out of taxes on real property sated in the South Bend Central Allocation Area (South Bend Allocation Area No. IA) (the Allocation Area ") allocated and deposited in the Allocation Area Special Fund (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 I C 36- 7 -14 -22 deposited in the Allocation Fund as required by IC 36 -7- 14-26 (these sources of revenues that will be used for payment of the Bonds shall hereinafter be referred to as the "Tax Increment "). The Bonds are being issued under the provisions of IC 36 -7 -14 in order to provide funds for payment of part of the cost of property acquisition and redevelopment in the Allocation Area. The District has previously issued $4,200,000 Tax Increment Revenue Bonds of 1985 (the "1985 Bonds ") and $1,750,000 Tax Increment Revenue Bonds of 1986 (the "1986 Bonds ") with the 1986 Bonds being on a parity with the 1985 Bonds. Both bond issues remain outstanding in their entirety as of February 2, 1988. The authorizing bond resolutions provide the District the right to issue additional bonds (the "Parity Bonds ") payable from the Tax Increment, ranking on a parity with the 1985 Bonds and the 1986 Bonds. The Commission has approved and confirmed that the conditions precedent required in the 1985 and 1986 bond resolutions pertaining to the issuance of said Parity Bonds have been met and has authorized the issuance of the Bonds described herein. The District reserves the right to authorize and issue additional Parity Bonds, payable from Tax Increment, ranking on a parity with the Bonds, the 1985 Bonds, and the 1986 Bonds, under certain CP nditions as specified in the 1988 bond resolution adopted by the Commission on November 12, 1987. TYPE OF BID A sealed bid for not less than $1,755,000.00 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior to the time set for bid opening, a certified or cashier's check in the amount of $18,000 payable to the order of the South Bend Redevelopment District shall have been filed with the City Controller or with SPRINGSTED Incorporated, the City's Financial Advisor, at the home office of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, (612) 223 -3000. No bid will be considered for which said check has not been filed. The checks of unsuccessful bidders will be returned immediately following the award of the Bonds. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the check of the Purchaser, the amount of which will be deducted at settlement. Bidders for the Bonds shall be required to name the rate or rates of interest which the Bonds are to bear, not exceeding twelve percent (12 %) per annum and such interest rate or rates shal I be in multiples of 1/8 or 1/20 of one percent (I %). Bids specifying more than one interest rate shall also specify the maturities of the Bonds bearing each rate and all Bonds maturing on the same date shall bear the some rate. No rate for any maturity shall be more than one percent (1%) lower than any prior rate. No conditional bid will be considered. Although not a term of sale, it is requested that each bid show the net dollar interest cost to final maturity and the net effective average terest rate on the entire Issue. MUNICIPAL BOND INSURANCE An application for a municipal bond guaranty insurance policy for this issue has been made. If a bond guaranty insurance policy is issued, it will unconditionally and irrevocably guarantee payment of the principal of and interest on the Bonds. The premium for such policy, if issued, will be paid by the District. No such municipal bond guaranty issuance has yet been obtained for the Bonds. Bidders are advised to contact the City Controller at Room 1400, County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601, (219) 284 -9742, or SPRINGSTED Incorporated, the District's Financial Advisor, at 251 North Illinois Street, Suite 1510, Indianapolis, Indiana 46204 -1942, (317) 237 -3636 in order to obtain information related to bond guaranty insurance. AWARD Cubject to provisions contained herein, the Controller shall award the Bonds to the bidder offering the lowest interest cost to be determined by computing the total interest on all of the Bonds from the date thereof to the date of their maturities and deducting therefrom the premium bid, if any or adding thereto the amount of any discount, if any. The Controller will reserve the right to: (i) waive non - substantive informalities of any bid or of matters relating to the receipt of bids and the award of the Bonds, (ii) reject all bids without cause, and, (iii) reject any bid which he determines to have failed to substantially comply with the terms herein. PAYMENT AGENT AND REGISTRAR The Paying Agent and Registrar shall be Bank One, Indianapolis, National Association, in Indianapolis, Indiana. CUSIP NUMBER If the Bonds qualify for assignment of CUSIP numbers, such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the Purchaser to accept delivery of the Bonds. The CUSIP Ap%ervice Bureau charge for the assignment of CUSIP identification numbers shall be paid by the urchaser. SETTLEMENT Unless otherwise agreed to by and between the City Controller and the Purchaser, the Bonds will be delivered without cost to the Purchaser within 40 days following the date of the award, at a place mutually satisfactory to the City Controller and the Purchaser. The Bonds may be delivered in temporary form at settlement which Bonds may be exchanged for definitive Bonds without delay. On the date of settlement, payment for the Bonds shall be made in immediately available funds in lawful money of the United States of America, which shall be received by the City Controller not later than 1:00 P.M., Eastern Standard Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the Commission, the City Controller or their agents, the Purchaser shall be liable for any loss suffered by the District by reason of the Purchaser's non- compliance with said terms for payment. At the time of delivery of the Bonds the approving opinion of Baker and Daniels, bond counsel, of Indianapolis, Indiana, as to the validity of the Bonds, together with a transcript of Bond proceedings, the printed Bonds with such legal opinion printed thereon, and closing certificates in the customary form showing no litigation, will be furnished to the successful bidder at the expense of the District. In addition, unless bond counsel is able, on the date of delivery, to render an opinion to the effect Qat, as of such date, under existing law, the interest on the Bonds is excluded from gross income for deral income tax purposes and all present taxes of the State of Indiana, except the state inheritance tax, the successful bidder shall have the right to rescind the sale, and in such event the good faith deposit will be immediately returned. On request of the District the successful bidder shall furnish to the District simultaneously with or before delivery of the Bonds, a certificate in form satisfactory to the District as to the initial public offering price of the Bonds. At settlement the Purchaser will be furnished with a certificate, signed by appropriate officers of the City, to the effect that the Official Statement did not as of the date of the Official Statement, and does not as of the date of settlement, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. OFFICIAL STATEMENT underwriters may obtain a copy of the Official Statement by request to the City Controller or the City's Financial Advisor prior to the bid opening. The Purchaser will be provided with 20 copies of the Official Statement. For further information regarding the Bonds contact the City Controller at Room 1400, County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601, (219) 284 -9742, or SPRINGSTED Incorporated at 251 North Illinois Street, Suite 1510, Indianapolis, Indiana 46204 -1942, (317) 237 -3636. Dated: January 20, 1988 THE SOUTH BEND REDEVELOPMENT COMMISSION By Roman Piasecki Secretary of the South Bend Redevelopment Commission OFFICIAL BID FORM TO: Ms. S. Katherine Humphreys, Controller City of South Bend 1400 County -City Building South Bend, Indiana 46601 RE: $1,800,000 Tax Increment Revenue Bonds of 1988 SALE DATE: February 8, 1988 For the Bonds of this Issue which shall mature and bear interest at the respective annual rates, as follow, we offer a price of $ (Note: This amount may not be less than $1,755,000) and accrued interest to the date of delivery. % 1993 % 1994 % 1995 % 1996 % 1997 % 1998 % 1999 % 2000 % 2001 % 2002 % 2003 % 2004 % 2005 In making this offer we accept all of the terms and conditions of the Official Notice of Sale published in the Addendum to the Official Statement dated January 21, 1988. In the event of failure to deliver these Bonds in accordance with the 0 icia1 Notice of Sale as printed in the Addendum to the Official Statement and made a part hereof, we reserve the right to withdraw our offer, ereupon the deposit accompanying it will be immediately returned. All blank spaces of this offer ''re intentional and are not to be construed as an omission. Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the following computations: NET INTEREST COST: $ NET EFFECTIVE RATE: % Account Members BY: Account Manager ............ ........... regoing offer is hereby accepted by the Issuer on7the date of the offer by the following officer i�efo Askuly authorized and empowered to make such acceptance. S. Katherine Humphreys, Controller Received good faith check for return to bidder. By OFFICIAL BID FORM TO: Ms. S. Katherine Humphreys, Controller City of South Bend 1400 County -City Building South Bend, Indiana 46601 RE: $1,800,000 Tax Increment Revenue Bonds of 1988 SALE DATE: February 8, 1988 For the Bonds of this Issue which shall mature and bear interest at the respective annual rates, as follow, we offer a price of $ (Note: This amount may not be less than $1,755,000) and accrued interest to the date of delivery. % 1993 % 1994 % 1995 % 1996 % 1997 % 1998 % 1999 % 2000 % 2001 % 2002 % 2003 % 2004 % 2005 In making this offer we accept all of the terms and conditions of the Official Notice of Sale published in the Addendum to the Official Statement dated January 21, 1988. In the event of failure to deliver these Bonds in accordance with the Official Notice of Sale as printed in the Addendum to the Official Statement and made a part hereof, we reserve the right to withdraw our offer, AplVhereupon the deposit accompanying it will be immediately returned. All blank spaces of this offer e intentional and are not to be construed as an omission. Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the following computations: NET INTEREST COST: $ NET EFFECTIVE RATE: % Account Members Account Manager BY: ... ............................... . ... .. ... .......... h' e foregoing offer is he accepted by the Issuer on the date of the offer by the following officer my authorized and empowered to make such acceptance. S. Katherine Humphreys, Controller Received good faith check for return to bidder. By