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Home My WebLink About9564-05 Issuance of Bonds to evidence a loan form the Environmental Remediation revolving loan fundORDINANCE No. vssv-os Passed by the Common Council of the City of South Bend, Indiana January 10 -- 20 _Q.3- Attest: Attest: ~ Q_~ City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana Januarv 11 20.g~ City Clerk January 12, 05 Approved and signed by me 20 Mayor ORDINANCE NO. l S b~`^ ~ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AUTHORIZING THE ISSUANCE OF BONDS TO EVIDENCE A LOAN FROM THE ENVIRONMENTAL REMEDIA - TION REVOLVING LOAN FUND ADMINISTERED BY THE INDIANA DEVELOPMENT FINANCE AUTHORITY, PLEDGING A PORTION OF THE CITY'S COUNTY OPTION INCOME TAX REVENUES TO SECURE SUCH BONDS, AND OTHER MATTERS CONNECTED THEREWITH STATEMENT OF PURPOSE AND INTENT Anchor South Bend, LLC or a related entity (the "Company") has proposed undertaking the redevelopment and construction of a retail and commercial center at a site (the "Property") located at or near the southwest corner of the intersection of Ireland and Michigan Streets in the City of South Bend, Indiana (the "City"). The Ireland Road Landfill is located on the Property and the Property is the subject of a Corrective Action Plan ("Corrective Action Plan") approved by the Indiana Department of Environmental Management. Under the terms of the Corrective Action Plan, certain environmental activities must be undertaken at the Property (the "Project") in order to make the property suitable for future redevelopment by the Company. To induce the Company to redevelop the Property, the City has agreed to apply for a loan (the "IDFA Loan") in an amount not to exceed Seven Hundred Fifty Thousand Dollars ($750,000) from the Environmental Remediation Revolving Loan Fund (the "Fund"), administered by the Indiana Development Finance Authority ("IDFA"), and to distribute the proceeds of the IDFA Loan (the "IDFA Loan Amount") to the Company for the purpose of providing funding for the remediation of a "Brownfield site" located on the Property in accordance with the Corrective Action Plan. The City and the Company have agreed that (i) an amount equal to Fifty Percent (50%) of the IDFA Loan Amount will be a loan (the "Company Loan") from the City to the Company (bearing the same interest and amortization as the IDFA Loan), to be evidenced by a loan agreement and related documents to be entered into between the City and the Company (the "Company Loan Documents"); and (ii) an amount equal to Fifty Percent (50%) of the IDFA Loan Amount will be a grant from the City to the Company. The IDFA Loan will be repaid from (i) the payments received by the City from the Company under the Company Loan Documents (the "Company Loan Revenues"), and (ii) the City Revenues (as defined below). The City has submitted an application to IDFA (the "Application") for the IDFA Loan, which Application sets forth the request for the IDFA Loan and the details of the Project. On 200_, IDFA approved making the IDFA Loan to the City in Resolution G -2004 (the "IDFA Resolution"), upon the terms and conditions set forth in the IDFA Resolution and in a Loan, Servicing and Disbursement Agreement to be entered in to between IDFA and the City (the "IDFA Loan Agreement") The St. Joseph County Income Tax Council has imposed a county option income tax ("COIT") pursuant to IC 6-3.5-6 on the adjusted gross income of the County taxpayers. The City shall repay the IDFA Loan (i) from the Company Loan Revenues, and (ii) from then current revenues of the City (the "City Revenues") annually appropriated by the Common Council of the City (the "Common Council") for the purpose of making such IDFA Loan 2 payments, and, to the extent available, COIT revenues (the "COIT Revenues ") allocated to the City (the COIT Revenues, together with the (i) City Revenues, and (ii) the Company Loan Revenues paid to the City, shall be referred to as the "Available Revenues"), it being the expectation of the City that the Company Loan Revenues and any such COIT Revenues shall be used by the City to offset any necessary appropriation of the City Revenues. In the event of the non-receipt of Company Loan Revenues, other Available Revenues will be used to re-pay the IDFA Loan. The bonds which shall evidence the IDFA Loan shall constitute a limited obligation of the City payable solely from Available Revenues, and neither the full faith and credit nor the taxing power of the City is pledged to the payment of the principal of and the interest on the bonds. To the extent that IDFA determines that the IDFA Loan is eligible for partial forgiveness pursuant to I.C. 13-19-5, it is possible for a portion, not to exceed Twenty Percent (20%), of the IDFA Loan to be forgivable by IDFA (the "Forgivable Portion") if the City achieves certain economic development goals set forth in the IDFA Loan Agreement which evidences the IDFA Loan. NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AS FOLLOWS: Section 1. The Common Council hereby authorizes revenue bonds of the City (the "Bonds") to be issued upon the terms and conditions set forth herein in the form of the IDFA Loan pursuant to I.C. 36-4-6-19 (the "Act") for the purpose of financing all or a portion of the Project. The City shall distribute the IDFA Loan Amount to the Company for the purposes of the 3 Project in accordance with the terms to be set forth in the IDFA Loan Agreement and the Company Loan Documents. Section 2. The Bonds to be issued by the City and evidenced by the IDFA Loan shall be payable from the Available Revenues, and the Bonds shall constitute a limited obligation of the City payable solely from the Available Revenues and neither the full faith and credit or the taxing power of the City is pledged to the payment of and interest on the Bonds. Furthermore, the Available Revenues shall be subject to annual appropriation by the Common Council. Section 3. The Common Council hereby authorizes the issuance of the Bonds in the form of the IDFA Loan in an aggregate principal amount not to exceed the amount of the IDFA Loan Amount, all in accordance with the Act and the IDFA Loan Agreement. The Bonds shall be designated as the "City of South Bend, Indiana Taxable Revenue Bonds of 2005 (Ireland Road Landfill Environmental Remediation Project), Series _" (with the blank to be completed with the letter which shall correspond to the applicable series of the Bonds). If it is determined that the IDFA Loan is eligible for partial forgiveness, the IDFA Loan Amount shall be evidenced by two Bonds of the City, the Bond evidencing the non-forgivable portion of the Loan being designated as "City of South Bend, Indiana Taxable Revenue Bonds of 2005 (Ireland Road Landfill Environmental Remediation Project), Series A", and the Bond evidencing Forgivable Portion of the Loan being designated as "City of South Bend, Indiana Taxable Revenue Bonds of 2005 (Ireland Road Landfill Environmental Remediation Project), Series B" (if it is determined that the IDFA Loan is not eligible for partial forgiveness, the IDFA Loan Amount shall be evidenced by a single Bond of the City, designated as "City of South Bend, Indiana Taxable Revenue Bonds of 2005 (Ireland Road Landfill Environmental Remediation Project), Series A"). 4 Section 4. The Bonds will be sold to IDFA pursuant to a negotiated sale, in accordance with I.C. 6-3.5-6-25, for par value as provided in the IDFA Loan Agreement. The Bonds shall be dated and have an original issuance date as of the date of the IDFA Loan. The Bonds shall mature on a date not later than one hundred nineteen (119) months from the date of original issuance thereof and shall bear interest at a rate not to exceed two and one-half percent (2.5%) per annum. Each series of the Bonds may be prepaid by the City at par on any date and shall be negotiable without registration. Section 5. Consistent with the terms of this Ordinance, the Mayor and the City Controller are hereby authorized to negotiate the terms of the IDFA Loan Agreement and the Bonds with IDFA, and the Company Loan Documents with the Company. The Mayor and the Clerk of the City are hereby authorized and directed to execute and deliver and the Clerk is hereby authorized to affix the seal on, when and if appropriate, the IDFA Loan Agreement, the Bonds, the Company Loan Documents, together with any documents, instruments, or certificates they deem necessary or appropriate upon the advice of counsel to complete the transactions contemplated herein. Section 6. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. COMMON COUNCIL OF THE CITY OF SOUTH BEND By: Member of the Common ouncil ATTEST: r ity erk 5 Presented by me to the Mayor of the City of South Bend, Indiana, on the !1 day of J h , 200,x, at 3' ~~ o'clock ~_.m. r City Clerk -rz Approved and signed by me on the /2 day of ~ , 200,, ~at /~ /d o'clock ~.m. .~ Mayor, ity of ut Bend, Indiana SBDS02 ABF 307787v9 11 ,~.~ A 1st READING ~Z-13-4` aS Su~S~~"~~ PUBLIC HEARING ~~~~ ~os QS S ~(as-~-4,~t~A...±~ 3 rd READING NOT APPROVED ~ 'l 0-®~ Ay t u .~54,-~~-~.;E~:~ '!~ REFERRED ~` ~ PASSED '^~p.~S` C4.S Su~S`M~;~ 6 Filed in Clerl~'~ office DEC 1 0 2004 JOHN VOORDE CRY CLERK, S0. BEND, IN. TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 93-04 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AUTHORIZING THE ISSUANCE OF BONDS TO EVIDENCE A LOAN FROM THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT BROWNSFIELDS . CLEANUP REVOLVING LOAN FUND ADMINISTERED BY THE INDIANA DEVELOPMENT FINANCE AUTHORITY, PLEDGING A PORTION OF THE CITY'S COUNTY OPTION INCOME TAX REVENUES TO SECURE SUCH BONDS, AND OTHER MATTERS CONNECTED THEREWITH Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation as substituted (See stricken copy attached). Roland Kelly Chairman