HomeMy WebLinkAbout1998-11-16 Resolution 131RESOLUTION NO. 131
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
AUTHORITY APPROVING THE AWARD OF THE SOUTH BEND
REDEVELOPMENT AUTHORITY LEASE RENTAL REVENUE
REFUNDING BONDS OF 1998 (BLACKTHORN GOLF COURSE
PROJECT) AND APPROVING THE EXECUTION OF AN ADDENDUM
TO THE LEASE BETWEEN THE AUTHORITY AND THE SOUTH
BEND REDEVELOPMENT COMMISSION AND OTHER RELATED
MATTERS
WHEREAS, the South Bend Redevelopment Authority (the "Authority") at a meeting
on October 19, 1998, adopted Resolution No. 130 (the "Bond Resolution") authorizing the issuance
and sale of bonds to be known as the "South Bend Redevelopment Authority Lease Rental Revenue
Refunding Bonds of 1998 (Blackthorn Golf Course Project) (the "Bonds") pursuant to IC 36-7-14.5-
• 19 and IC 5-1-5 et se ., in the aggregate principal amount not to exceed Seven Million and 00/100
Dollars ($7,000,000), the proceeds of which are to be used to refund the South Bend Redevelopment
Authority Lease Rental Revenue Bonds (Blackthorn Golf Course Project) issued in 1992 (the
"Refunded Bonds") to finance the construction of a public golf course (the "Project") and to pay the
costs of issuance of the Bonds; and
WHEREAS, the Bond Resolution authorized the publication of a notice of intent to
sell bonds-(the "Notice") which Notice was published on October 23, 1998, and October 30, 1998,
in the South Bend Tribune, the Tri-Coun News and the Court and Commercial Record; and
WHEREAS, the Notice provided that the Authority reserved the right to increase or
decrease the individual principal amounts of the Bonds maturing in the years 1999 through 2013 by
an amount not to exceed One Hundred Thousand and 00/100 Dollars ($100,000.00) per maturity for
r~
LJ
purposes of providing sufficient funding of the escrow fund .(the "Escrow Fund") that will be
•
established to advance refund the Refunded Bonds; and
WHEREAS, three (3) bids for the purchase of the Bonds were received on behalf of
the Authority on November 10, 1998, and City Securities Corporation was the lowest bidder based
upon the criteria set forth in the Bond Resolution and the Notice; and
WHEREAS, Crowe, Chizek and Company LLP, financial advisor to the Authority
(the "Financial Advisor"), has determined that the various maturities of the Bonds may be reduced
in certain instances in accordance with the terms of the Notice such that the aggregate principal
amount of the Bonds sold to City Securities Corporation will be Six Million One Hundred Thirty-
five Thousand and 00/100 Dollars ($6,135,000); and
WHEREAS, the Financial Advisor has determined the individual principal amounts
of the Bonds as finally determined will adequately fund the Escrow Fund necessary to advance
•
refund the Refunded Bonds; and
WHEREAS, the Authority previously entered into a lease between the Authority and
the South Bend Redevelopment Commission (the "Commission") dated as of July 1, 1992, as
amended by an Addendum to Lease entered into by the Authority and the Commission and dated as
of October 2, 1992 (collectively, the "Lease"), pursuant to which the Authority is leasing the Project
to the Commission; and
WHEREAS, the Authority desires to approve and execute an addendum to the Lease
(the "Addendum") in the form presented to the Authority at this meeting, reflecting lower annual
lease rental amounts for the Project; and
•
-2-
::ODMA\I'CDOCS\SBDOCS 1 \26373\ I
WHEREAS, the Authority intends to send written notice of redemption (the "Notice
•
of Redemption") to Norwest Bank Indiana, N.A., trustee of the Refunded Bonds (the "Trustee") as
required by Section 4.02 of the Trust Agreement dated as of October 1, 1992 between the Authority
and the Trustee (the "Refunded Bonds Trust Agreement");
NOW, THEREFORE, BE IT RESOLVED, by this South Bend Redevelopment
Authority as follows:
Section 1. The Authority hereby approves the award of the bonds in an aggregate
principal amount of Six Million One Hundred Thirty-five Thousand and 00/100 Dollars
($6,135,000.00) and maturing serially on March 1 in the years and in the principal amounts and
bearing interest at the rates as follows:
Year Principal Amount Interest Rate
1999 $ 120,000 3.25%
•
2000 155,000 3.65%
2001 205,000 3.90%
2002 270,000 4.00%
2003 330,000 4.10%
2004 395,000 4.20%
2005 430,000 4.30%
2006 445,000 4.35%
2007 465,000 4.40%
2008 485,000 4.50%
2009 520,000 4.60%
2010 540,000 4.70%
2011 565,000 4.75%
2012 590,000 4.80%
2013 620,000 4.80%
Section 2. The Addendum is hereby approved in the form presented to this meeting
and the President and Secretary-Treasurer are hereby authorized to execute and attest, respectively,
said Addendum. The Lease shall be amended as of the date (the "Deposit Date") when the
•
-3-
::ODMA\PCDOCS\SBDOCS 1\26373\ 1
• Authority deposits or causes to be deposited a portion of the proceeds derived from the sale of the
Bonds into the Escrow Fund. The Deposit Date shall be recorded as an endorsement to the
Addendum.
Section 3. The Authority hereby authorizes and directs the President of the
Authority to execute and deliver the Notice of Redemption to the Trustee on the Deposit Date.
Section 4. The Financial Advisor is hereby authorized to enter into a subscription
agreement on behalf of the Authority for the purchase of the Treasury Securities -State and Local
Government Series to be deposited into the Escrow Fund for purposes of advance refunding the
Refunded Bonds.
Section 5. This Resolution shall be in full force and effect after its adoption by the
Authority.
• Adopted at a meeting of the Authority held on November 16, 1998, in Room 1308,
County-City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601.
ATTEST:
f ,.
Josf lvarez, Secretary- reasurer
•
SOUTH BEND REDEVELOPMENT AUTHORITY
a
R
By ~ ~ --~.
Carolyn V. e aue , si nt
-4-
:ODMA\PCDOCS\SBDOCS 1 \263730