HomeMy WebLinkAboutResolution No. 3546 (Amending Special Tax SB Morris Project)RESOLUTION NO. 3546
A RESOLUTION OF THE SOUTH BEND
REDEVELOPMENT COMMISSION AMENDING RESOLUTION NO. 3545
DETERMINING TO PROVIDE FOR A SPECIAL TAX IF NECESSARY TO PAY
LEASE RENTALS IN CONNECTION WITH THE LEASE DATED AS OF
DECEMBER 1, 2021, BETWEEN THE
SOUTH BEND REDEVELOPMENT COMMISSION AND
THE SOUTH BEND REDEVELOPMENT AUTHORITY
RELATING TO THE MORRIS PERFORMING ARTS CENTER PROJECT
AND OTHER RELATED MATTERS
WHEREAS, the South Bend Redevelopment Commission (the “Commission”), the
governing body of the South Bend Department of Redevelopment and the Redevelopment District
of the City of South Bend, Indiana (the “District”), exists and operates under the provisions of
Indiana Code 36-7-14, as amended from time to time (the “Act”); and
WHEREAS, the City of South Bend, Indiana (the “City”) has determined to undertake
certain improvements to the Morris Performing Arts Center (the “Performing Arts Center”)
consisting of certain energy savings improvements, renovations of the floor and seating, and
certain other improvements at the Performing Arts Center (collectively, the “Project”); and
WHEREAS, the Commission has given consideration to (i) financing the cost of all or a
portion of the Project; (ii) funding a debt service reserve fund, if necessary in connection with the
issuance of the Bonds (defined herein); and (iii) paying costs incurred in connection with the
issuance of the Bonds; and
WHEREAS, the South Bend Redevelopment Authority (the “Authority”) has been created
pursuant to IC 36-7-14.5 as a separate body, corporate and politic, and as an instrumentality of the
City, to finance local public improvements for lease to the Commission; and
WHEREAS, the Authority intends to lease the Performing Arts Center (the “Leased
Premises”) to the Commission pursuant to a lease dated as of December 1, 2021 (the “Lease”),
which form of Lease was heretofore approved by this Commission, the Authority and the Common
Council of the City in order to provide for the financing of the Project; and
WHEREAS, the Authority and the Commission have given consideration to (i) financing
the cost of funding a portion of the cost of the Project; (ii) funding a debt service reserve fund, if
necessary in connection with the issuance of the Bonds (defined herein); and (iii) paying costs
incurred in connection with the issuance of the Bonds; and
WHEREAS, the Authority intends to issue bonds pursuant to 1C 36-7-14.5-19 and a trust
agreement (the “Trust Agreement”) between the Authority and U.S. Bank National Association,
as trustee (the “Trustee”), to be known as the “South Bend Redevelopment Authority Lease Rental
Revenue Bonds of 2022 (Morris Performing Arts Center Project)” in an aggregate principal
amount not to exceed Seven Million Two Hundred Fifty Thousand Dollars ($7,250,000) (the
“Bonds”), the proceeds of which are to be used to finance all or any portion of the costs of (i) a
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portion of the Project; (ii) funding a debt service reserve fund, if necessary, in connection with the
issuance of the Bonds; and (iii) issuing the Bonds; and
WHEREAS, the Commission intends to pay rent to the Authority pursuant to the terms of
the Lease, at a rate not to exceed Four Hundred Twenty Thousand Dollars ($420,000) per year, in
semiannual installments, with a term no longer than twenty-five (25) years beginning on the date
the Authority acquires an interest in the Leased Premises, and ending on the day prior to a date not
later than twenty-five (25) years after such date of acquisition by the Authority (the “Lease Rental
Payments”); and
WHEREAS, the Commission anticipates that sufficient funds will be available to the
Commission to make the required Lease Rental Payments with such funds being derived from the
St. Joseph County hotel-motel tax revenues (the “Morris Hotel-Motel Tax Revenues”) deposited
into the Morris Performing Arts Center Fund (the “Morris Hotel-Motel Tax Fund”) established
pursuant to Indiana Code 6-9-1-6.4 and pledged for such purpose pursuant to a resolution adopted
on November 4, 2021 (the “Pledge Resolution”) by the St. Joseph County Hotel-Motel Tax Board
of Managers (the “Board of Managers”); and
WHEREAS, pursuant to the Pledge Resolution, the Board of Managers will pay sufficient
Morris Hotel-Motel Tax Revenues to the Trustee as payment of the Lease Rental Payments when
due under the Lease; and
WHEREAS, because the Commission anticipates that sufficient Morris Hotel-Motel Tax
Revenues will be available to make the Lease Rental Payments, the Project does not constitute a
“controlled project” as such term is defined by Indiana Code 6-1.1-20-1.1; and
WHEREAS, the Commission adopted Resolution No. 3545 on January 27, 2021
(“Resolution No. 3545”) determining to provide for the levy of a special tax pursuant to Section
27 of the Act (the “Special Tax”) in the event it becomes necessary to levy the Special Tax for the
payment of the Lease Rental Payments owed by the Commission pursuant to the Lease and to
authorize the establishment of certain funds and accounts in connection thereto; and
WHEREAS, the Commission desires to amend Resolution No. 3545 to provide that, in
considering revenues available to the Commission in order to avoid the need to levy the Special
Tax, the Commission will take into account only cash amounts on deposit in the debt service
reserve fund established in the Trust Indenture;
NOW, THEREFORE, BE IT RESOLVED, BY THIS SOUTH BEND
REDEVELOPMENT COMMISSION AS FOLLOWS:
SECTION 1. The Commission hereby amends and restates Section 2 of Resolution No.
3544 in its entirety as follows:
SECTION 2. The Commission agrees that it shall levy in each calendar year
pursuant to Section 27 of the Act during the term of the Lease the Special Tax upon
all of the taxable property in the District in a total amount necessary, together with
all other funds (other than special taxes), including, without limitation, the Morris
Hotel-Motel Tax Revenues then on deposit in the Morris Hotel-Motel Tax Fund as
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of August 1 of such calendar year, to pay all Lease Rental Payments payable in the
12-month period beginning on July 1 of the year following such calendar year
pursuant to Section 4 of the Lease. The Controller of the City (the “Controller”) is
hereby authorized to create a fund (the “Lease Fund”) for the purpose of depositing
such taxes into and such taxes and any other funds deposited in the Lease Fund
shall be irrevocably pledged for the purposes set forth in this Resolution, such
pledge being effective as set forth in IC 5-1-14-4 without the necessity of filing or
recording this resolution or any instrument except in the records of the Commission.
In addition to any amounts then on deposit in the Lease Fund, if any, and in the
Morris Hotel-Motel Tax Fund, the Commission may also take into account when
determining whether it is necessary to levy the Special Tax as described herein,
cash amounts available in the debt service reserve fund which may be established
under the Trust Agreement to provide additional security for the Bonds, all based
upon the advice and recommendation of the Controller. Notwithstanding the
foregoing, the Commission expects that the Morris Hotel-Motel Tax Revenues will
be sufficient to pay the Lease Rental Payments when due without the need for the
Special Tax.
SECTION 2. Except as amended herein, Resolution No. 3545 is hereby ratified and
confirmed and shall remain in full force and effect.
SECTION 3. This Resolution shall be in full force and effect after its adoption by the
Commission.
ADOPTED at a meeting of the South Bend Redevelopment Commission held on February
10, 2022, as authorized by Executive Order 20-09 issued by the Governor of the State of Indiana,
as subsequently renewed.
SOUTH BEND REDEVELOPMENT
COMMISSION
By:
Marcia I. Jones, President
ATTEST:
Troy Warner, Secretary
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