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HomeMy WebLinkAboutApproving the Issurance Rental Revenue Bonds Coveleski Stadium Project ORDINANCE No. 7882-88 Passed by the Common Council of the City of South Bend, Indiana. June 27, x88 Attest: ''` - s Yom,, . —� City Clerk IRENE K. GAMMON - I Attest: _•: L.'.. President o f Common Council Presented by me to the Mayor of the City of South Bend, Indiana June 28, I 88 City Clerk IRENE K. GAMMON Approved and signed by me 'p „r1 0.9 i9 �" Mayor ORDINANCE NO. 722 -KZ AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, APPROVING THE ISSUANCE OF THE SOUTH BEND REDEVELOPMENT AUTHORITY LEASE RENTAL REVENUE BONDS (COVELESKI STADIUM PROJECT) FOR THE PURCHASE OF THE STANLEY COVELESKI REGIONAL STADIUM STATEMENT OF PURPOSE AND INTENT: WHEREAS, the South Bend Redevelopment Authority (the "Redevelop- ment Authority") intends to issue its South Bend Redevelopment Autho- rity Lease Rental Revenue Bonds (Coveleski Stadium Project) (the "Bonds") in an aggregate principal amount not to exceed Six Million Five Hundred Thousand Dollars ($6,500, 000. 00) , the proceeds of which are to be used to finance the purchase by the Redevelopment Authority of the Stanley Coveleski Regional Stadium (the "Coveleski Stadium") from Security Pacific National Bank, the Lessor under an Agreement for Lease with Purchase Option (the "Lease Agreement") with the Board of Park Commissioners of the Park District of the City of South Bend (the "Park Board") , as Lessee; and WHEREAS, the Coveleski Stadium is a five thousand seat sports facility located at 501 South Street in the City of South Bend, Indiana, Redevelopment District and, in addition to a playing field, consists of public areas, restrooms, administrative office areas, pressbox, locker room and other team areas, concession and souvenir sales areas, maintenance building, storage areas, stadium club area, specialized seating areas and such equipment and appurtenances inci- dental to the operation of a stadium facility; and WHEREAS, the Coveleski Stadium is to be leased by the Redevelop- ment Authority to the South Bend Redevelopment Commission (the "Rede- velopment Commission") pursuant to a Lease between the Redevelopment Authority and the Redevelopment Commission (the "Lease") dated as of June 1, 1988, and it is expected that the Coveleski Stadium will be initially operated by the Park Board; and WHEREAS, the purchase price of the Coveleski Stadium will be determined pursuant to the provisions of the Lease Agreement; and WHEREAS, in addition to the purchase price of the Coveleski Stadium, the Bonds will pay costs incidental to their issuance; and WHEREAS, the Park Board has assigned its option to purchase pur- suant to the Lease Agreement to the Redevelopment Authority and the Redevelopment Authority has accepted the assignment of said option to purchase; and WHEREAS , the Redevelopment Commission,, on April 29, 1988, subsequent to a public hearing at which all interested parties were provided the opportunity to be heard, adopted Resolution No. 842 finding, pursuant to IC 36-7-14.5-14, that the rental payments to be made by the Redevelopment Commission to the Redevelopment Authority pursuant to the Lease, as previously approved by the Redevelopment Authority and Redevelopment Commission, respectively, at a rate not to exceed One Million Dollars ($1, 000, 000 . 00) per year in semi-annual installments through the expiration of the Lease, are fair and reasonable, and finding pursuant to IC 36-7-14- 25.2 that the use of the stadium throughout the term of the Lease will serve the public purpose of the City of South Bend and is in the best interests of its residents; and WHEREAS, the Common Council, on May 9, 1988, adopted Ordinance No. 7873-88, which found that the rental payments, as approved by the Redevelopment Commission, are fair and reasonable, and further found that the use of the Coveleski Stadium throughout the term of the NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: 1. That the Common Council approves the issuance of the "South Bend Redevelopment Authority Lease Rental Revenue Bonds (Coveleski Stadium Project) " in a maximum amount not to exceed Six Million Five Hundred Thousand Dollars ($6,500,000. 00) the proceeds of which are to be used for the purchase of the Coveleski Stadium from Security Pacific National Bank by the Redevelopment Authority. 2. This Ordinance shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Me .er o, the Common Council oUTH \l \\\,,,,,,� City of South Bend �I V i`;,,_ �f►r/j Joseph E. Kernan, Mayor �\\ 6` \ Department of Law Richard A. Nussbaum, II, City Attorney June 7, 1988 Mr. John Voorde, President South Bend Common Council 4th Floor, County-City Building South Bend, Indiana 46601 RE: Stanley Coveleski Regional Stadium Refinancing Dear Mr. Voorde: The Tax Equity and Fiscal Responsibility Act "T.E.F.R.A. " requires that for "Private Activity Bonds" to be tax exempt the fiscal body of the issuing unit shall conduct a public hearing and pass an ordinance approving the issuance of such bonds. Therefore, we are filing with this letter an ordinance approving the issuance of such bonds in order to refinance the lease purchase of the Stanley Coveleski Regional Stadium. While it is unlikely that any transition rule will be passed prior to the proposed September 1, 1988 closing on the stadium refinancing, the adoption of this ordinance will preserve our ability to qualify the refinancing as tax exempt in the event that a transition rule is passed. We wish to thank you as well as the other members of the Common Council for the cooperation we have received throughout this refinancing process. We ask for favorable consideration of this ordinance in order to maximize the savings to the tax payers of the City of South Bend. Thank you for your cooperation. Sincerely, ki)MIL V-Z"4141-4'n-Y4-1 Richard A. Nussbaum, II City Attorney RANII:kls 1400 County-City Building • South Bend, Indiana 46601 • 219/284-9241 Thomas L. Bodnar Sandra A. Boyd David C. Chapleau Marva Leonard-Dent Jenny Pitts Manier Carolyn V. Pfotenhauer Robert C. Rosenfeld