HomeMy WebLinkAboutNo. 0752 amending Section 6 of Res. No. 747 of the COSBRCRESOLUTION NO. 752
A RESOLUTION AMENDING SECTION 6 OF RESOLUTION NO. 747
OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION
WHEREAS, on August 23, 1985, the South Bend Redevelopment
Commission adopted Resolution No. 747, authorizing the issuance of
tax increment bonds in the amount of Four Million Two Hundred
Thousand Dollars ($4,200,000.00) to finance property acquisition
and redevelopment in the South Bend Central Development Area, which
has boundaries co- terminous with the South Bend Allocation Area No.
1A; and
WHEREAS, certain amendments are necessary to adjust
requirements concerning parity bond provisions in Section 6 of
Resolution No. 747.
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND
REDEVELOPMENT COMMISSION, as follows:
SECTION I. Section 6 of Resolution No. 747 shall be
deleted in its entirety and a new Section 6 shall be and hereby is
adopted to read in its entirety as follows:
SECTION 6. The Redevelopment District reserves the right
to authorize and issue additional bonds ( "Parity Bonds "), payable
out of the Tax Increment, ranking on a parity with the Bonds
authorized by this Resolution for the purpose of raising money for
future property acquisition or redevelopment in the Allocation
Area. In the event any Parity Bonds are issued pursuant to this
Section 6, the term "Bonds" in this Resolution shall be deemed to
refer to the bonds authorized to be issued by this Resolution and
such Parity Bonds. The authorization and issuance of Parity Bonds
shall be subject to the following conditions precedent:
(a) All interest and principal payments with respect to
all bonds payable from the Tax Increment shall be
current to date in accordance with the terms thereof
with no payment in arrears.
(b) The balance in the Reserve Account shall equal the
Debt Service Reserve Requirement.
(c) The Commission shall have received a certificate
prepared by an independent certified public
accountant or an independent financial consultant
( "Certifier ") certifying that the Tax Increment
estimated to be received in each succeeding year,
adjusted as provided below, is estimated to be equal
to at least 150% of the principal and interest
requirements for each respective year during the term
of the Bonds with respect to the bonds and the Parity
Bonds. In estimating the Tax Increment to be
received in any future year, the Certifier shall base
his calculation on assessed valuation actually
assessed or to be assessed as of the assessment date
immediately preceding the issuance of the Parity
Bonds; provided, however, the Certifier shall adjust
such assessed values for the current and future
reductions of real property tax abatements granted to
property owners in the Allocation Area. No increase
in the Tax Increment to be received in any future
year shall be assumed which results from projected
inflation in property values or projected increases
in property tax rates.
The Commission shall approve and confirm the findings
and estimates set forth in the above - described certificate in any
supplemental resolution authorizing the issuance of the Parity
Bonds.
SECTION II. Resolution No. 747 shall .remain in all
other respects as adopted on August 23, 1985.
Approved this 18th day of November, 1985, at a Special
Meeting of the South Bend Redevelopment Commission.
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SOUTH BEND REDEVELOPMENT COMMISSION
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