HomeMy WebLinkAboutNo. 0756 amending Section 5 of and adding Section 21 to Res. No. 747 of the COSBRCRESOLUTION NO. 756
A RESOLUTION AMENDING SECTION 5 OF
AND ADDING SECTION 21 TO
RESOLUTION NO. 747 OF THE
CITY OF SOUTH BEND REDEVELOPMENT COMMISSION
WHEREAS, on August 23, 1985, the South Bend Redevelop-
ment Commission (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, on November 18, 1985, the Commission adopted
Resolution No. 752, amending Section 6 of Resolution No.
747; and
WHEREAS, on November 22, 1985, the Commission adopted
Resolution No. 715, amending Section 19 and adding Section 20
to Resolution No. 747;
WHEREAS, certain additional amendments to Resolution
No. 747 are necessary.
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND
REDEVELOPMENT COMMISSION, as follows:
SECTION I. Section 5 of Resolution No. 747 shall
be deleted in its entirety and a new Section 5 shall be and
hereby is adopted to read in its entirety as follows:
"SECTION 5. There are hereby created and established
a Tax Increment Revenue Account, to which all Tax Increments
received shall be deposited, a Bond Principal and Interest
Account, a Reserve Account and a General Account in the Allo-
cation Fund (each of which the Controller, the Commission
and the Department hereby covenants and agrees to cause to
be kept and maintained). On the date of original issuance
the Bonds and on January 15, 1987 and each January 15th
thereafter, all moneys in the Tax Increment Revenue Account
shall be set aside in the following respective special accounts
within the Allocation Fund, in the following order of priority:
(1) Bond Principal and Interest Account.
(2) Reserve Account.
(3) General Account.
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All money in each of the accounts in the Allocation Fund
shall be held in trust for the benefit of the holders of the
Bonds and shall be applied, used and withdrawn only for the
purposes authorized in this Section 5. The proceeds of the
Allocation Fund shall be deposited with a legally qualified
depositor or depositories for funds of the City as now provided
by law and shall be segregated and kept separate and apart
from all other funds of the City and may be invested in
Qualified Investments, as such term is defined below.
(a) Bond Principal and Interest Account.
There shall be set aside within the Allocation
Fund and deposited in the Bond Principal and Interest
Account from the Tax Increment Revenue Account an
amount of money which, together with any money
contained therein, is equal to the aggregate amount
of the interest becoming due that calendar year
payable on all outstanding Bonds and the aggregate
principal amount of the outstanding Bonds becoming
due and payable on the next principal payment date,
except that for the deposit into this Account to
be made on the original date of issuance of the
Bond shall be for interest becoming due in 1986.
No deposit need be made into the Bond Principal
and Interest Account if the amount,contained therein
is at least equal to the aggregate amount of the
interest becoming due and payable on all outstanding
Bonds during that calendar year and the aggregate
principal amount of the outstanding Bonds maturing
by their terms on the next succeeding principal
payment date. All money in the Bond Principal and
Interest Account shall be used and withdrawn solely
for the purpose of paying the interest on and the
principal of the Bonds as it shall become due and
payable to the extent it is required therefor
(including accrued interest on any Bonds purchased
or redeemed prior to maturity).
(b) Reserve Account. There shall be set
aside from the Allocation Fund and deposited in
the Reserve Account from the Tax Increment Revenue
Account an amount of money that shall be required
to maintain the Reserve Account in the full amount
of the Debt Service Reserve Requirement (as defined
below). No deposit need be made in the Reserve
Account so long as there shall be on deposit therein
a sum equal to the lesser of fifteen percent (15 %)
OL of the original issuance price of the Bonds or the
average annual principal and interest payments
(which shall be calculated as payments due on August 1
and the following February 1) on the outstanding
Bonds (the "Debt Service Reserve Requirement ").
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All money in the Reserve Account shall be used and
withdrawn by the City solely for the purpose of
making deposits into the Bond Principal and Interest
Account, in the event of any deficiency at any
time in such account, or for the purpose of paying
the interest on or principal of or redemption premiums,
if any, on -the Bonds in the event that no other
money is lawfully available therefor, except that
so long as there is no default hereunder any amount
in the Reserve Account in excess of the Debt Service
Reserve Requirement shall be withdrawn from the
Reserve Account and deposited in the General Account.
Money in the Reserve Account shall also be available
to make the final payments of interest and principal
on the Bonds.
(c) The remaining amounts in the Tax Increment
Revenue Account shall be deposited into the General
Account of the Allocation Fund and be available
to:
(1) Pay the principal of and interest
on any obligations (including the Bonds) payable
solely from allocated tax proceeds which are
incurred by the Redevelopment District for
the purpose of financing or refinancing the
redevelopment of that Allocation Area;
(2) Restore the debt service reserve
for bonds (including the Bonds) payable solely
or in part from allocated tax proceeds in the
Allocation Area;
(3) Pay the principal of and interest
on bonds payable from allocated tax proceeds
in the Allocation Area and from the special
tax levied under IC 36- 7- 14 -27; or
(4) Pay the principal of and interest
on bonds issued by the City to pay for local
public improvements in the Allocation Area,
to reimburse the City for expenditures made
by City for local public improvements (which
include buildings, parking facilities, and
other items described in IC 36- 7- 14- 25.1(a))
within the Allocation Area, or for rentals
paid by City for a building or parking facility
within that Allocation Area under any lease
entered into IC 36 -1 -10.
provided however, that if further uses of property
tax proceeds allocated to the Allocation Fund are
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authorized or permitted by amendment to the Act,
including IC 36- 7- 14 -39, those uses shall also be
authorized or permitted for property tax proceeds
allocated to the Allocation Fund; and
(d) When the money in the Allocation Fund is
sufficient to pay when due all principal and interest
on bonds described in subdivisions (1), (3) and
(4) of subsection (c), and is not needed for the
other purposes described in subsection (c), money
in the Allocation Fund in excess of that amount
(the "Excess Funds ") shall be paid to the Controller
and presented to the County Treasurer who shall,
during the time a part of the Allocation Area is
located in an enterprise zone created under
IC 4- 4 -6.1, deposit such Excess Funds in a special
fund created for the enterprise zone and when no
part of the Allocation Area is located in an enter-
prise zone then the Excess Funds shall be deposited
in the funds for the respective taxing units entitled
thereto.
The Tax Increment, other than the Excess Funds, shall be
irrevocably pledged for the purposes set forth in this
Section 5.
The term "Qualified Investments" means any of the
following that are also permitted under IC 5 -13 -1:
(a) direct obligations of (including obligations
issued or held in book entry form on the books of the
Department of the Treasury of the United States of America),
or obligations the principal of and interest on which
are unconditionally guaranteed by the United States of
America;
(b) bonds, debentures or notes or other evidence
of indebtedness payable in cash issued by any one or a
combination of any of the following federal agencies
whose obligations represent full faith and credit of
the United States of America: Export Import Bank of
the United States, Federal Financing Bank, Farmer's
Home Administration, Federal Housing Administration,
Maritime Administration, Public Housing Authority,
Government National Mortgage Association.
(c) certificates of deposit properly secured at
all times, by collateral security described in (a) and
(b) above. Such agreements are only acceptable with
commercial banks, savings and loans associations, and
mutual savings banks.
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(d) the following investments fully insured by
the Federal Deposit Insurance Corporation, the Federal
Savings and Loan Insurance Corporation: (a) certificates
of deposit, (b) savings accounts, (c) deposit accounts,
or (d) depository receipts of a bank, savings and loan
associations, and mutual savings banks.
(e) Investments Agreements approved by AMBAC
Indemnity Corporation.
The value of the above investments shall be determined
as provided in value below.
If more than one provision of this definition of
"value" shall apply at any time to any particular investment,
the value thereof at such time shall be determined in accordance
with the provision establishing the lowest value for such
investment.
SECTION II. A new Section 21 shall be added to
Resolution No. 747 and shall read as follows:
"Section 21. Defeasance. In the event that the
principal and redemption price, if applicable, and interest
due on the Bonds shall be paid by AMBAC Indemnity Corporation
pursuant to AMBAC's Municipal Bond Insurance Policy, the
assignment and pledge of the Tax Increment and all covenants,
agreements and other obligations of the Issuer to the Bond-
holders shall continue to exist and AMBAC Indemnity Corporation
shall be subrogated to the rights of such Bondholders ".
SECTION III. Resolution Nos. 747, 752 and 755
shall remain in all other respects as adopted on August 23,
1985, November 18, 1985 and November 22, 1985, respectively.
Approved this 20th day of December, 1985, at a
regular meeting of the South Bend Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
F. Jay Nimt President
ATTEST:
Roman Piasecki, Secretary
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