HomeMy WebLinkAbout1990-12-21 Resolution 29r ~_, ~•
RESOLUTION NO. 29
RESOLUTION OF-THE SOUTH BEND REDEVELOPMENT AUTHORITY
APPROVING AN OFFICIAL STATEMENT RELATING TO THE...
ISSUANCE OF THE SOUTH BEND REDEVELOPMENT AUTHORITY
TAXABLE LEASE RENTAL REVENUE BONDS°(AIRPORT ECONOMIC.
DEVELOPMENT AREA PUBLIC"IMPROVEMENT PROJECT)
AND AUTHORIZING DISTRIBUTION OF INFORMATION
WHEREAS, the South Bend Redevelopment Authority (the
"Authority") at a meeting on December 17, 1990 adopted Resolution
No. 26 (the "Taxable Bond Resolution") authorizing the issuance
and sale of bonds to be known as the "South Bend Redevelopment
Authority Taxable Lease Rental Revenue Bonds (Airport Economic
Development Area Public Improvement Project)" re ate axr nc Baldsum
pursuant to IC 36-7-14.5 et se ., in the agg g P P
of Four Million Two Hundred Thousand Dollars ($4,200,000), the
proceeds of which are to be used to finance certain land and public
improvements (the "Taxable Improvement Project") and to pay the
costs of issuance of the Taxable Bonds; and
WHEREAS, an Official Statement dated December 21, 1990,
(the "Official Statement") relating to the issuance of the Bonds
has been prepared by H. J. Umbaugh & Associates, as financial
advisors to the Authority, and presented to the Authority;
WHEREAS, the Authority desires to publish notice of
intent to sell bonds as provided for in the Taxable Bond
Resolution; and
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND
REDEVELOPMENT AUTHORITY AS FOLLOWS:
1. The Official Statement is hereby approved in the
form presented to the Authority at this meeting, contained therein,
and the .Official Statement in the form presented at this meeting
is hereby deemed final for purposes of the provisions of Rule
15c2-12 of the Securities and Exchange Commission. H. J. Umbaugh
& Associates is hereby authorized and directed to cause to be
distributed such statement substantially in the form presented to
this meeting, with such changes as may be required by amendments
to the Lease between the Redevelopment Authority and the
Redevelopment Commission dated August 1, 1990 which are approved
by the Authority's legal counsel. as H. J. Umbaugh might recommend
to describe adequately the Taxable Bonds and information related
thereto, to all parties who in their judgment may be interested in
bidding on such Taxable Bonds; and the Authority-shall place a
copy of such Official Statement as presented to this meeting with
the minutes of this meeting.
2. The Secretary of the Authority is authorized and
directed to publish notice of intent to sell bonds as provided for
in the Taxable Bond Resolution in the Tri-County News, the South
~~ Bend Tribune, and The Indianapolis Commercial and The Indianapolis
Star on December 21 and December 28, 1990.
3. This Resolution shall be in full force and effect
from and upon compliance with the procedures required by law.
ADOPTED at a meeting of the Authority held on
December 21, 1990, in the offices of the Authority, 1200
County-City Building, 227 West Jefferson Boulevard, South Bend,
Indiana 46601.
CITY OF SOUTH BEND
REDEVELOPMENT AUTHORITY
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By:
J ph roblewski, President
ATTEST:
_-.~~=-
Donald Fewell, Secretary-Treasurer
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South Bend Redevelopment Autharity
South Bend, Indiana
Preliminary Official .Statement
$4,200,000
TA-~~ABLE lease Rental Revenue Bonds
Bond Sale
Time and Date of the Sale
Will be by Notification
120() County-City Building
South Bend, Indiana
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' = y " PRELIMINARY OFFICIAL STATEMENT DATED DECEMBER 21, 1990
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o s ~ -INTEREST ON THE TAXABLE LEASE RENTAL BONDS IS NOT EXCLUDABLE FROM GROSS INCOME OF
_°' THE OWNERS THEREOF FOR FEDERAL INCOME TAX PURPOSES UNDER SECTION 103 OF THE
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' y = = INTERNAL REVENUE CODE OF 1986, AS AMENDED. In the opinion of Baker & Daniels,
o ~ ~ South Bend, Indiana, .interest on the Taxable Lease Rental Bonds is exempt from all
j ~~° ~ present .Indiana taxes, except the Indiana financial institutions tax and the
E'er ~ Indiana inheritance tax. See "TAX MATTERS" herein.
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_u N.Q SOUTH BEND REDEVELOPMENT AUTHORITY
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TAXABLE- LEASE RENTAL REVENUE BONDS.
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aiO'" Original Dater January 1, 1991 Due: August 1st as shown below
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o the "Redevelo ment Authorit ") is issuing
~;~ = The-South Bend Redevelopment Authority ( p Y
"" ° $4 200,000 of Taxable Lease Rental Revenue Bonds (Airport Economic Development
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'3 ~ ~ Area Public Improvement P~.oject) (the .Taxable Lease Rental Bonds ) for the purp s
R o of road construction and. land acquisition. In addition, bondTpaoceoeds will provide
o for .issuance expenses and capitalized interest. The Taxable e~se ental Bonds a
t a a payable from semi-annual lease rental payments to be paid by the Soutn Send
s 3 Redevelopment Commission (the "Commission") directly to Society Bank located in
- ~ South Bend, Indiana, as Trustee (the "Trustee"), under a Trust Agreement, dated as
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• a y ~ of December 1, 1990, between the Redevelopment Authority and the Trustee .(the
e ~ ~ "Trust Indenture") and a lease dated as of August 1, 1990 and restated and amended
y ~ as of December 21, 1990 (the "Lease").between the Redevelopment Authority as Lessor
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" _ ° The Taxable Lease Rental Bonds are being issued pursuant to IC 36-7-14.5. The
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~'~ Taxable Lease Rental- Bonds will be issued in fully registered form in the
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denomination of $5,000 or any .integral .multiple thereof. Interest payable
~'°•°`~ August 1, 1991, and semi-annually thereafter, will be paid by check mailed by the
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~= ~ Trustee to the registered owners at their addresses as shown on the registration,
y books maintained by the Trustee. The Taxable Lease Rental Bonds are subject to
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~_ ` L optional redemption, prior to maturity, beginning August 1, 1992 as more .fully
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described herein.
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_ TAXABLE LEASE RENTAL REVENUE BONDS
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~ ~ ~ ~ Interest Interest
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L ~ ~ Maturity Principal Rate Price Maturity PrinciQal Rate Price
__ _
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R ~ ~ 8/1/96 $ 40,000 ~ ~ 8/1/05 $255,000 $ ~
"~= 8/1/97 50,000 ~ ~ 8/1/06 280,000. $ ~
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°'~ ~ 8/1/98 90,000 ~ ~ 8/1/07 310,000 ~ ~
"'/ " 8/1/99 125,000 ~ ~ 8/1/08 340,000 ~ ~
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~_ ~ 0 8/1/00 145,000 ~ - ~ 8/1/09 380,000 ~ $
° ~°' 8/1/01 165,000 $ ~ 8/1/10 420,000- $ $
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8/1/02 190,000 ~ ~ 8/1/11 460,000 ~ ~
~ ~ R 8/1/03 210,000. ~ ~ 8/1/12 510,000 ~ €
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d ° °' 8/1/04 230 , 000 $ ~
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The Taxable Lease Rental Bonds are being offered for delivery when, as and if
issued and received by the Underwriter and. subject to the approval of legality by
Baker & Daniels, Indianapolis, Indiana, Bond Counsel. The Taxable Lease Rental
Bonds are expected to be available for delivery in Indianapolis, Indiana, on or
about January 31, 199.1.
IN CONNECTION WITH THIS OFFERING: THE UNDERWRITER MAY OVER-ALLOT OR EFFECT
TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE TAXABLE LEASE
RE.*ITAL BONDS OFFERED HEREBY AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN
THE OPEN MARKET, AND SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY
TIME.
No dealer, broker, salesman or .other person has been authorized by the
Redevelopment Authority or the Underwriter to give any information or to make any
representations, other. than those contained in this Official Statement, and if
given or made, such other- information or representations must not be relied upon
as having been authorized by any of the foregoing. This Official Statement does
not constitute an offer to sell or the solicitation of an offer to buv nor shall
there be ary sale of the Taxable Lease Rental Bonds by any person in the State in
which it is unlawful for such person to make such offer, solicitation or sale.
The information set forth herein has been provided by the Redevelopment Authority
and other. sources which are believed to be reliable but it is not guaranteed as to
accuracy or completeness anti is not to be construed as a representation by, the
underwriter. The information and expressions of .opinion herein are subject to
charge without notice and neither the delivery of phis Official Statement nor any
sale of the securities described herein shall, under any circumstances, create any
implication that there has been no change in the affairs of the Commission since
t:.e date of delivery of the securities described herein to the ir,i;.ial purchaser
thereof.. However, upon delivery of the securities, the Redevelopment Authority
will provide a certificate stating that there have been no material changes in the
information contained in the final Official Statement, since its delivery.
TABLE OF CONTENTS
Introductory Statement. .
Description of the Bonds.
Security for the Bonds..
Bond Rating
Redemption. Provisions
Risk Factors to be Considered by Investors. .
Schedule of Amortization of $4,200,000 Principal Amount of
Taxable Lease Rental Revenue Bonds. .
Estimated Sources and Uses of Funds .
Underwriting .
Opinion of Bond Counsel
Litigation.
Miscellaneous
Appendices as Tabbed:
A Notice of Intent to Sell
B General Information
C Accounting Report
D Lease
E Trust Indenture Excerpts
F Legal Opinion and Tax Matters
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. 1
. 2
2-3
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. 5
. 5
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5-6
. 6
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PRELIMINARY OFFICIAL STATEMENT
$4 , 200 , 000 ~ ~ r 1 '~ ~~~
SOUTH BEND REDEVELOPMENT AUTHORITY
TAXABLE LEASE RENTAL REVENUE BONDS
_ (Airport Economic Development Area
Public Improvement Project) "
INTRODUCTORY STATEMENT
This Official Statement .sets forth certain information concerning the offering
of $4,200,000 of aggregate principal amount of Taxable Lease Rental Bonds by the
South Bend Redevelopment Authority. The Taxable Lease Rental Bonds will be
issued under the provisions of the Indiana Code, Title 36, Article 7, Chapter
14.5 and in accordance with the terms of the Trust Indenture. Under the Trust
Indenture, Society Bank .located in South .Bend, Indiana, has been designated the
Trustee for the Taxable Lease Rental Bonds.
The Redevelopment Authority was organized for the purpose of financing,
acquiring land, constructing and leasing to the Redevelopment Commission. certain
road improvements in or `serving the Redevelopment Area, which is in the
District, (collectively, the "Projects"), under the Trust Indenture and the
Lease. The Lease-Rental is payable from ad valorem property taxes. If the
_. Redevelopment Commission determines that tax increment will be insufficient to
pay the Lease Rental, the Redevelopment Commission must annually levy a tax on
.all taxable property in the District in an amount which., together with tax
increment to be collected, will be sufficient to produce the necessary funds with
which to pay the Lease Rental provided for in the Lease as it becomes due and
payable. The District is coterminous with"the City.
DESCRIPTION OF THE BONDS
General
The Taxable Lease Rental Bonds will be dated the first day of the month in which
they are delivered (anticipated to be January 1, 1991), and mature in the amounts
and on the dates and bear interest at the rates set forth on the cover page of
this Official Statement.
Pavinz Agent
The principal and redemption .price of the Taxable Lease Rental Bonds are payable
at the principal office of Society Bank, located in South Bend, Indiana,. as
Trustee. Interest is payable by check mailed by the Trustee to the registered
owners at their addresses as shown on the registration books maintained by the
Trustee on the fifteenth day of the month immediately preceding the interest
payment date.
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SECURITY FOR THE BONDS
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The Taxable Lease Rental Bonds are being issued by the Redevelopment Authority
and are secured by payments of Lease Rental to be paid by the Redevelopment
Commission directly to the Trustee (for the account of the Redevelopment
Authority) pursuant to the terms of the Lease. The Lease Rental is payable
beginning on the later of the date on which the Projects are complete and ready
and available for use or July 28, 1992. Thereafter, the Lease Rental is payable
semi-annually on each January 28th and July 28th. Capitalized interest in the
amount of $798,216 will be used to pay a portion of the interest on the Taxable
Lease Rental Bonds.
The Lease Rental to be paid by the Redevelopment Commission during the term of
the Lease is required to be in amounts sufficient to pay the principal of and
interest on the Taxable Lease Rental Bonds. Such annual rental is payable from
ad valorem property taxes. The bonds are secured by a pledge of unlimited ad
valorem property taxes levied on all taxable properties in the District. Each
year on July 1st or when the City prepares its budget, the Redevelopment
Commission shall estimate the amount of tax increment expected to be collected in
the subsequent calendar year. To the e:{tent tax increment is not available or is
not expected to be available on the dates on which the Lease Rental is due in the
subsequent year, the Redevelopment Commission shall annually levy a special
benefits tax on all taxable property iP. the District in accordance with IC 36-
7-14-27.
BOND R_yTIVG
;loody's Investors Service, Inc. (Moody's) has assigned a bond rating of
to the Taxable Lease Rental Bonds. Such rating reflects Only the view of Moody's
and any explanation of the significance of such rating may only be obtained from
Moody's.
The rating is not a recommendation to buy, sell or hold the Taxable Lease Rental
Bonds, and such rating may be subject to revision or withdrawal at any time by
Moody's. Any downward revision or withdrawal of the rating may have an adverse
effect upon the market price of the Taxable Lease Rental Bonds.
The Redevelopment Authority did not apply to any other rating service for a
rating on the Taxable Lease Rental Bonds.
REDEMPTION PROVISIONS
The Taxable Lease Rental Bonds due on August 1, 1996, and thereafter are
redeemable. at the option of the Authority on August 1, 1992 or any date
thereafter in order of maturity and by lot within maturities as follows:
Redemttion Dates Redemption Prices
August 1, 1992 or thereafter on or before
July 31, 2000 103$
August 1, 2000 or thereafter on or before
July 31, 2001 102
August 1, 2001 or thereafter on or before
July 31, 2002 101
August 1, 2002 and thereafter prior to maturity _ 100$
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To evidence its intention to exercise the right of redemption,the Redevelopment
Authority shall, not less than 45 days prior to the date selected for
• redemption, file with the Trustee written notice of its intention to redeem,
designating the date fixed -for redemption, and if less than all of the
.outstanding Taxable Lease Rental .Bonds are to be redeemed, stating the aggregate
principal amount of Taxable Lease Rental Bonds which the Redevelopment. Authority
desires to redeem.
Notice of redemption shall be mailed to the address of the registered owners of
the Taxable Lease Rental Bonds to be redeemed as shown on the registration record
of the Trustee not less than 30 days prior to the date fixed for redemption. Any
notice shall specify the date and place of redemption. Interest on the Taxable
Lease Rental Bonds so called for redemption shall cease on the redemption date
fixed in such notice, if sufficient funds. are available at the. place of
redemption to pay the .redemption price, including interest accrued to the
redemption date, on the date so named. Failure to give .such notice by mailing,
or any defect in such notice, with respect to any Taxable Lease Rental Bond shall
not affect the validity of the redemption of any Taxable Lease Rental Bonds.
RISK FACTORS TO BE CONSIDERED BY INVESTORS
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Prospective investors in the Taxable Lease Rental Bonds should be aware of the
following .risk factors:
1. The Taxable Lease Rental Bonds are payable solely from lease rental payments
from the Commission to the Authority and other Pledged Funds as defined in
the Trust Agreement. The Authority has no taxing power. Under the Lease,
the lease payments will not begin until the later of July 28, 1992 or
completion of the' Projects. In the event the Projects are not completed,
the. lease payments would not be made.
2. In reference to the risk described in number 1 above., in-the event there is
excessive delay in completion of the Projects so as to be delayed beyond
July 28, 1992 sufficient revenues may not be available to meet the interest
payment due on August 1, 1992 and subsequent interest and principal
payments.
3. In the event the Projects should ever be totally or substantially
destroyed, the lease rental shall be abated during the .period in which. the
Projects are unfit for .their intended use. However, rental value insurance
will be available to make Bond payments during the time the lease rental is
abated, for a period of up to two years. If either (i) the cost of
reconstruction of the Projects would exceed. the amount. of insurance
proceeds or (ii) such reconstruction cannot be completed within the period
of time covered by rental value insurance, the insurance proceeds will be
applied to the redemption of all outstanding Taxable Lease Rental. Bonds and
the full discharge of all obligations pertaining thereto.
4. In the event of delayed billing, collection, or distribution of property
taxes by the .county auditor, sufficient funds may not be available to the
Commission in time t-0 make lease rental payments when due..
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Debt Service
Payment Principal Interest Bond Year
Date Balance Principal Rate Interest Total Total
(In Thousands) (In Dollars)
8/1/91 $4,200
2/1/92 4,200
8/1/92 4,200
2/1/93 4,200
8/1/93 4,200
2/1!94 4,200
8/1/94 4,200
2/1/95 4,200
8/1/95 4,200
2/1/96 4,200
8/1/96 4,200 $ 40
2/1/97 4,160
8/1/97 4,160 50
2/1/98 4,110
8/1/98 4 ,110 90
?/1/99 4,020
8/1/99 4,020 125
2%1/00 3,895
8/1/00 3,895 145
2/1/01 3,750
8/1/01 3,750 165
2/1/02 3,585
8/1/02 3,585 190
2/1/03 3,395
8/1/03 3,395 210
2/1/04 3,185
8/1/04 3,185 230
2/1/05 2,955
8/1/05 2,955 255
2/1/06 2,700
8/1/06 2,700 280
2/1/07 2,420
8/1/07 2,420 310
2/1/08 2,110
8/1/08 2,110 340
Z/1/09 1,770
8/1/09 .1,770 380
2/1/10 1,390
8/1/10 1,390 420
2/1/11 970
8/1/11 970 460
2/1/12 510
8/1/12 510 510
Totals 4 200
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ESTIMATED SOURCES AND USES OF FUNDS
DEC ~. 9 '
The proceeds from the sale of the Taxable Lease Rental .Bonds will be applied to
the costs of constructing the Projects, the- payment of capitalized interest and
the payment of bond .issuance costs. The estimated sources and uses of funds are
summarized below:
Estimated Sources of Funds:
Proposed Taxable Lease Rental Bonds
Estimated Uses of Funds:
Construction and related costs
Allowance for capitalized interest
.Underwriters discount
Bond issuance costs
Less: Capitalized interest fund earnings
$4.,200,000
$3,280,000
798,216
84,000
108,000
(70.216)
Total estimated uses of .funds
UNDERWRITING
U
S4,200,000
The Taxable Lease Rental Bonds are being purchased for reoffering by the
Underwriter, (the "Underwriter") at a
purchase price of $ plus accrued interest .from January 1, 1991.
The Notice of Intent to Sell provides that all of the Taxable Lease Rental Bonds
will be purchased by the Underwriter if any of such Bonds are purchased.
The Underwriter intends to offer the Taxable Lease Rental Bonds to the public at
the offering prices set forth on the .inside •cover page of this Official
Statement. The Underwriter may allow concessions to certain dealers (including
dealers in a selling group of the Underwriter and other dealers depositing the
Taxable Lease Rental Bonds into investment trusts), who may reallow concessions
to other dealers. After the initial public offering, the offering price may be
varied from time to time by the. Underwriter.
OPINION OF BOND COUNSEL
Legal matters incident to the authorization and issuance of the Bonds are subject
to the unqualified approving opinion of Baker & Daniels, Indianapolis, Indiana,
Bond Counsel. .Copies of such .opinion will be made available by the Authority at
the time of the delivery of the Bonds. Bond Counsel has not undertaken to review
the accuracy or completeness of any representation contained in this Official
Statement and expresses no opinion thereon nor assumes any responsibility in
connection therewith. A form of the legal opinion can be found as Appendix F of
this Official Statement.
LITIGATION
At the time of delivery of the .Bonds, the Authority will certify that there is
no litigation or other proceedings pending or, to the knowledge of the
• Authority, threatened in any court., agency or other administrative body
restraining or contesting the issuance of the Bonds or in any way affecting the
validity of any provisions of the Bonds. _
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As of the date of this Official Statement, legal counsel for the Authority, to
the best of-his knowledge, is aware of no meritorious litigation pending against
the Authority wherein an_ unfavorable decision or decisions would result in an
award or awards which would, separately or collectively, adversely affect in a
material manner the financial condition of the Authority.
MISCELLANEOUS
The references, excerpts and summaries of all documents referred to herein do
not purport to be complete statements of the provisions of such documents, and
reference is directed to all such documents for full and complete statements of
all matters of fact- relating to the Taxable Lease Rental Bonds, the security for
the payment of the Bonds and the rights and obligations of the owners thereof.
This Official Statement is submitted in connection with the sale of securities
as referred to herein, and may not be reproduced or be used, in whole or part,
for any other purpose. The delivery of this Official Statement at any time does
not imply that information herein is correct as of any time subsequent to its
date.
*Io dealer, salesman or any other person has been authorized to give any
information or to make any representation. other than. as contained in this
Official Statement and if given or made, such other information or representation
must not be relied upon as having been authorized by any of the foregoing.
T'.:'_s Official Statement does not constitute an offer of any securities other
than described on the inside cover page or an offer to sell or a solicitation of
an offer to buy in any jurisdiction in which. such offer, solicitation or sale
would be unlawful.
Any statements in this Official Statement involving matters of opinion,
projections or estimates, whether or not expressly so stated, are intended as
such and not as representation of fact. This Official Statement is not to be
construed as a contract or agreement between the Authority and the purchasers or
owners of any of the Taxable Lease Rental-Bonds.
The execution of this Official Statement has been duly authorized by the South
Bend Redevelopment Authority.
By:
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President, Redevelopment Authority
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APPENDIX A
(To be provided by Baker & Daniels)
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APPB'NDIX B
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TABL OF CONTENTS
.~ • • ~
Pa e s
l
Project Personnel 3
Project Description
General Physical and Demographic Information 3
Location. 3
History and General Characteristics 3
Population. 4
Government . 4
Transportation. 4
Police and Fire Protection. 4
Education 5
Communication 5
Utilities 5
Health Care 5 - 6
Recreation/Culture/Library.
General Economic and Financial Information 7
Financial Institutions. ;. 7-9
Industry . 9
Large Employers 10
Employment and Labor Force Data ~ 11
:liscellaneous Economic Data ~• '
12
Building Activity
Historical Net Assessed Valuations of the l3
City of South Bend. '
Detail. of Net Assessed Valuations of the 14
City of South Bend. '
Historical Schedule of Total Tax Rate and 15
Detail of City Tax Rate ~ ~ ~ 16
Property Taxes Assessed and Collected ~ ~ 17
Large Taxpayers l8
Schedule of Bonded Indebtedness ~ 19.20
Notes to Bonded Indebtedness . 21
Debt Ratios ~ 22
Pension Liabilities ~ 23.24
Comparative Balance Sheet - All City Funds. .
Comparative Statement of Revenues, Expenditures and
` 25
' Balances .
Changes in Fund
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PROJECT PERSONNEL
Names and positions of officials of the City of South Bend and professionals who
have taken part in the planning of this project are:
Ma..^L°r .
Joseph E. Kernan, Mayor
Common Council
Thomas Zakrzewski, President
Loretta Duda, Vice President
Sean Coleman
Stephen Luecke
Donald Niezgodski
William Soderberg.
Ann Puzzello
Linda Slavinskas
John Voorde ,
Redevelopment Commission
F. Jay Nimtz, President
Paula N. Auburn, Vice President
Roman J. Piasecki, Secretary
Sandy Combs
Michael Donoho
Redevelopment Authority
Joseph W. Wroblewski, President
Donald K. Fewe11, Vice President
George W. McCullough, Jr., Secretary-Treasurer
Department of Economic Development
Jon R. Hunt, Executive Director
.Ann E. Kolata, Deputy Executive Director
Bond Counsel Bond Counsel
Richard L. Hill Richard Starkey
Baker & Daniels Baker & Daniels
205 .West Jefferson Boulevard 300 North Meridian Street
South Bend, Indiana 46601 Suite 2700
Indianapolis, Indiana 4.6244
Financial Advisor
Myron H. Frasier
H. J. Umbaugh & Associates
Certified Public Accountants
Suite 100, 20 East 91st Street
P.0. Box 40458
Indianapolis,. Indiana 46240
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Pro,j„ect Description
The proposed project to be financed by $4,200,000. of Taxable Lease Rental
Revenue Bonds includes extending water and sewer lines, land .acquisition and
constructing streets to development sites within the area.
The City's Airport 2010 project,. in which this issue is the first phase, is a
major, long-term economic development project which will develop 2,300 acres of
land around the Michiana Regional Airport. The complete project is expected to
result in hundreds of millions of dollars of private investment, including a new
office park, hotel/golf course that will create thousands of jobs in North
Central Indiana.
GENERAL PHYSICAL AND DEMOGRAPHIC INFORMATION
Location
The City of South Bend is located in St. Joseph .County in North Central Indiana,
approximately 140 miles north of Indianapolis .and 90 miles east of Chicago. The.
City borders on the State of Michigan and is commonly known as the "Michiana"
area.
u~storv and General Characteristics
The City of South Bend was incorporated in 1867. In the 1800's Potawatomi
Indians, trappers and missionaries traveled through sections of South Bend on
the banks of the St. Joseph-Kankakee River. The Indians and Frenchmen settled
in the beautiful area surrounding the southern most tip of the St. Joseph River
(to be known as "South Bend"). Through the years many businesses started -in
South Bend including the Studebaker Brothers Manufacturing Company which became
the largest wagon maker in the world. In 1892 the Holy Cross Brothers .founded
Notre Dame University which has grown to over 1,200 acres and 10,000 students.
Notre Dame provides a positive impact on South Bend's economy (estimated at $432
million per year) and on the community.
The South Bend area has a mix of agriculture, manufacturing, commercial and
tourism industries. This diversification provides the city with varied
employment opportunities and provides for a strong economic future.
Population
The population for the City of South Bend and St. Joseph County is provided by
the U.S. Bureau of Census.
City of South Bend St Jose ph County
Percentage Percentage
Increase/ Increase/
Year Population Decrease Population Decrease
1940 101,268 (2.8)~ lb1,823 1.1 ~
1950 115,911 14.4 ~ 205,058 26.7 ~
1960 132,445 14.3 ~ 238,614 16.4 ~
1970 125,580 (5.2)$ 244,827 2.6 ~
•
1980 109,727 (12.6) 241,617 (1.3)~
1988 (est.)* 106,190 (3.2)~ 244,200 1.1 ~
*Estimate as of July 1
-3-
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Government
0 ~ ~ 1 '9 1990
The City government of South Bend is comprised of a Mayor, a nine member Common
Council and City Clerk all elected to four-year terms of office. The Common
Council is composed of six members elected from districts and three members at-
large. Supplemental governing bodies include the Redevelopment Commission,
Board of Public Works, Board of Safety, and Board of Parks and Recreation.
TraP.SDOrtatlOn
Transportation is easily accessible in South Bend with interstates I-80 and I-90
running east and west and U.S. 31, the main North/South route in the City which.
leads travelers to Michigan within minutes and Indianapolis in less than three
hours. In addition, 45 truck lines provide .carrier services. Fire rail
systems provide freight and passenger service and the Chicago South Shore Line
connects with downtown Chicago's "loop". Amtrak provides service to major U.S.
cities also. Bus transportation within the City is provided by the municipal
bus service (Transpo) and STS For the elderly. Three major bus lines provide
travel to many cities in the United States. The Michiana Regional Airport
serves the City with nine passenger lines providing flights to major cities.
Commuter and freight service flights are also available. Chicago's O'Hare
Airport is located approximately 120 miles from South Bend.
?olice and "ire Protectior.
The City of South Bend Police Department provides police protection for
residents of South Bend and consists of 230 officers and 105 vehicles. The
department consists of K-9 patrols, a swat team, metro drug task force and
bicycle and motorcycle patrols.
The South Bend Fire Department includes 212 firefighters with equipment
consisting of pumpers, river rescue boats, ambulances., ladder trucks and
hazardous materials trucks.
Education
The City of South Bend is served by the South Bend Community School Corporation
and the Penn-Harris-Madison School Corporation. The school systems provide a
variety of academic and extracurricular activities. The Penn-Harris-Madison
School Corporation has an enrollment of 7,847 students for the 1990-91 school
year and has a certified staff of 444 and a non-certified staff of 325. The
school system includes one high. school, two middle schools and nine
elementaries. Penn-Harris-Madison School Corporation is finishing a $39.5
million renovation/addition project that begar. in the fall of 1987. Most of
the new construction included a 4,000 seat gymnasium; auditorium, library and
pool.
The South Bend School Corporation includes five high schools, five middle
schools and 25 elementaries with a total enrollment of 20,565. Certified staff
includes 1,489 and non-certified staff includes 1,419 employees.
South-Bend has nine institutions of higher education and/or technical training
including the University of Notre Dame, St. Mary's College, Indiana University
at South Bend, Bethel College, Holy Cross College, a Purdue Program, Indiana
Vocational Technical College, Michiana College and Davenport College. These
educational institutions have a total enrollment of over 20,000 students.
_4-
~-o. -"' 4..~..
~~ .., ~~ ~
Communication Q~w Z ~ !9~
Communications are provided by the daily 'South Bend Tribune and the Tri County
News .provided on a weekly basis. Several AM and FM radio stations within South
Bend and Elkhart, as .well as stations from Chicago, provide news and music to a
variety .of listeners. All major television networks are available to residents
of the City with signals originating in Elkhart and Chicago. Cable television
is also. available throughout most of the City.
Utilities
The City of South Bend receives natural gas from Northern Indiana Public Service
Company (NIPSCO), electric service .from Indiana and Michigan Electric: Company
and telephone .service from Indiana Bell Telephone Company. Water and sewage
.treatment and collection are provided by the City's Municipal Utilities.
Health Care
The City of South Bend and the Michiana area is served by four acute care
hospitals, Memorial Hospital, Michiana Community Hospital, St. Joseph Medical
Center in South Bend and St. Joseph Hospital in Mishawaka.
Memorial Hospital is a 526-bed hospital with 2,100 employees. The hospital is
undergoing extensive growth including a $9.3 million ambulatory care and
outpatient surgery center. The Center will provide six operating rooms, two of
which will-have laser equipment, and admitting and recovery area. This project
is expected to be completed by November, 1991. Additions and renovations. also
include a $1 million Leighton Center for senior resources which •.~ill be
completed in May, 1991, a $1.8 million expansion of the open heart recovery. area
and a renovation of the pediatric intensive care center.
The St. Joseph Medical Center employs 1,685 full and part-time employees and is
licensed for- 339 beds. They opened a $8 million outpatient care facility in
January of 1989. The hospital is also undergoing several internal remodeling
projects and additions, including more operating rooms.
The Michiana Community Hospital employees 450 and is a 107-bed hospital.
Charter .Hospital of South Bend is a psychiatric. care facility with treatment
programs for alcohol and drug abuse. In addition, there are 13 nursing homes in
the City of South Bend.
Recreation/Culture/Librarv
The City of South Bend has a wide-variety of recreational facilities available
to the residents. The City has 71 public parks covering 1,400 total acres which
provide swimming pools, softball and baseball diamonds, tennis courts, 35
supervised playgrounds and a recreational center. -The Parks Department also
provides two 18-hole championship golf courses and one 9-hole course.
The City of South Bend is the home of the South Bend White Sox, a minor league
team of the Chicago White Sox. Coveleski"Re,gional Baseball Stadium, named after
Hall of Famer, Stanley Coveleski, is a new 5,000 seat facility which is rated. as
• one of the best stadiums in minor league baseball and holds sold-out crowds
during the White Sox's season. Last year the team won the Midwest League
Championship and placed third in attendance in comparison to all Class A teams.
-5-
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.~~+~ ~ ~ X90.
Recreation/Culture/Library (Cont'd)
The St. Joseph River flows through the City and provides scenic and- boating
pleasure. The Olympic-class East Race Waterway runs adjacent to the St. Joseph
River and is a 2,000 yard man-made rafting and kayaking course. This waterway
is the only man-made white rapids in the United States. .In the summer,
national and regional competitions are held on the course.
Other attractions include the Morris Civic Auditorium which offers Broadway
plays and the South Bend Symphony, the Studebaker Museum which .houses a
collection of carriages, wagons, cars and trucks, the Potawatomi Zoo and the
Morris Conservatory. Century Center, located on the, riverfront park, has 54,000
square feet of exhibit and convention space available as well as a recital hall,
performance area and theatre.
Activities are also available at the many colleges and universities in the City,.
especially St. Mary's College, Notre Dame University, Bethel College and Indiana
university at South Bend.
The St. Joseph County Library, as well as the Indiana University at South Bend
Library, and the Mishawaka-Penn Library provide a wide range of library services
to residents of the area. The St. Joseph County Library is currently
completing $8 million of renovations and additions to several branches. One
addition to the largest library branch is completed, as is a parking lot
addition at another location. The !0,000 square foot addition to the main
library is expected to be completed by Summer, 1°O1.
-b-
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~r.NERAL ECONOMIC AND FINANCIAL INFORMATION
~l ~ ~ 1 9 jg90
Financial Institutions
The following is a list of financial institutions in the City of South Bend.
t Total resources are reported as of September 30, 1990 as follows:
- Numher of
_ Number of Locations in Reported
Locations South Bend Resources
Standard Federal Bank 114 3 $9,485,000,:000
First Source Bank 27 12 1,193,174,000
Society Bank, Indiana 42 11 1,103,513,000
Ameritrust National Bank, Michiana 26 1 1,061,201,208 (1)
Valley American Bank & Trust Co. 20 8 541,755,000
First Interstate Bank 8 8 259,914,.000 (2)
Sobieski Federal Savings & Loan Assoc. 4 4 62,500,000
Midwest Commerce Bank 16 1 27,026,207
Summit Bank of South .Bend 1 1 19.,153,000
(1) Was formerly known as Pioneer Federal Savings & Loan Association. Was
bought out by Ameritrust May, 1990.
(2) On January 30, 1991 will consolidate into ;lorwest Bank, Indiana.
Industry
• The industries of South Bend manufacture a variety of products including engine
controls, plastic pipes, vinyl .siding, electric switches and garden tractors.
The Michiana area provides varied employment opportunities and for the calendar
year 1989, the average total employment was at an all-time high of 129,890 out
of a total labor force of 135,820., with an unemployment rate of 4.4~. As
reported by the Indiana Department of Employment and Training Services.. The
attraction of new business and the development of four industrial parks has
expanded the economic base during. the last five years.' Total employment for
1989 in the industrial parks was 4,741 with an .annual payroll of $114.2 million.
In early 1990, $4.9 million Redevelopment District bonds were sold and will be
used for the acquisition and demolition of the old industrial corridor that used
to house the Studebaker plant. A new industrial park. is expected to be
developed and will provide for more economic development opportunities in South
Bend.
Bendix Aviation Corporation, initially an automotive brake factory is now a
major part of Allied-Signal Inc., composed of three major businesses:
aerospace, automotive, and engineered materials. Today, Bendix carbon brakes
are used in a number of commercial and military .aircraft and is a world leader
in this field.
Small manufacturing firms (50 employees or less) are a growing force in the
area's economy with 81.3 percent of all St. Joseph County manufacturing firms
. being within this category.
-7-
4.. '{ ' ~~-. ~'
Indus trv ( Cont' d) ~ E ~ 1 ~ 190
Retail and shopping facilities also employ a large work force in the South Bend
area. There are four enclosed malls as well as a Buyers' marketplace and
several shopping centers throughout the County providing consumer .goods to
residents.
The following are excerpts from the South Bend-Mishawaka area Chamber of
Commerce reports on business expansion and new investment activity in St. Joseph
County.
FEDERAL EXPRESS is planning a major expansion of its air cargo operation on
five to six acres of land leased from the Airport authority on the south side of
the Michiana Regional airport. Plans call for construction of a building
enclosing 50,000 square feet along with installing a plane holding ramp and a
taxiway connecting the facility to the airport runways. The proposed expansion
will serve as both an air cargo operation and a trucking center with the
building being used to house and maintain 50 local delivery trucks.- Employment
is expected to increase from its current. figure of 80 people.
FI`JE STAR ENTERPRISES is completing a $1.8 million condominium office building.
The 23,000_ square foot Facility features impressive views of the river from
10 ft. wide open porches constructed on each of the building's three levels.
Portions of she building have beer. sold to Resources Planning Group, Michiana
Veuro Surgery, Professional Employers Service, an accountant and a financial
consultant. Once finished, approximately 50 people are expected to be employed
there.
I/IN KOTE is the latest joint venture by Inland Steel Industries and Nippon •
Steel Corporation now being built adjacent to the completed I/N Tek plant near
New Carlisle. The $450 million addition will add two zinc coating lines - a
400,000 ton electrogalvanizing line, and a 500,000 ton hot-dip galvanizing line
for producing the highest quality .coated steel needed by automobile and
appliance-manufacturers. Construction started a year ago, with completion
planned for the end of 1991. Estimates put employment at 170 people bringing
the total number of workers to 400 at the two plants.
The two plants represent a total investment of $900 million making it the
largest American-Japanese joint venture in the country. It becomes the largest
single building project in the history of St. Joseph County. Three governments
and private agencies are jointly planning construction of $14 million in roads,
sewer lines and a water treatment plant to accommodate the new I/N Kote plant.
LEIGHTON CENTER FOR SENIOR HEALTH will be a two-story, 7,000 square foot
comprehensive senior citizens health center to be built next to Memorial
Hospital. The home-like facility will feature a library, activities rooms and a
demonstration kitchen for dietary education keyed to older adults and care-
givers. Construction began in July and is expected to be completed in May,
1991.
MEIJER. INC. has three sites of approximately 30 acres each under contract in
St. Joseph County. The Grand Rapids, MI firm builds "combination stores" of
approximately 195,000 square feet that specialize in one-stop shopping. Site
preparation for the 27 acre site at Edison Lakes should. begin early next year
and take about. 13 months to build once construction starts. Stores generally
cost at least $10 million and employ 800 to 900 part-time workers.
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Industry (Copt' d) ~~ie 1~ ~ ~~_
.NORTHERN INDIANA HISTORICAL SdCIETY held a'`grand opening .for Cophaholm, the 38-
room Oliver Mansion turned into a house museum, at the corner of West Washington
and South Chapin Streets. Phase one includes remodeling the existing carriage
house into a visitor's center and entrance to the new museum, and construction
of a two-story gallery by late. 1990. Phase two is the building of the museum
itself to be completed by late 1992 or early 1993. The cost of the total
project will be $7 million of which $4.8 million has already been received
.through a County general obligation bond issue.
Large Employers
Below is a list. of South Bend's largest employers. Medical services,
government and educational institutions reported employment includes full and
.part time employees. Reported employment is according to company personnel or
the South Bend-Mishawaka Chamber of Commerce.
Name'
University of Notre Dame
South Berd Community School Corporation
Memorial Hospital
St. Joseph Medical .Center
Allied Signal Divisions
City of South Bend
St. Joseph County
RACO, Inc.
Automatic Molded Plastics
Allied Products Corp.
Michiana Community Hospital
Wheel Horse Products
Reported
f Business Employment
Tv~e o
Higher education 3,300
Public education .?,908
Acute care 'r~ealth facility 2 , 100
Acute care health facility 1,000
Airplane and,auto'parts 1,522*
City government 1,400
County government 900
Electrical switches and boxes 535
Custom injection molders 525
Sheet metal stamping 500
Acute care health facility 450
Lawn and garden equipment 393
*Per South Bend/Mishawaka Chamber of Commerce
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Employment and Labor Force Data ~~ 9 ~~,
~~
Unemployment percentages for St. Joseph County are reported as provided by th'~:
Indiana Employment Security Division and the Indiana Department of Employment and
Training Services.
Unemployment Rate_ St. Joseph County
Year St Joseph County Indiana Labor Force
1981 9.4~ 10.0 123,100
1982 9.9~ 12.0 120,200
1983 9.1~ 11.1 118,800
1984 7.3$ 8.6~ 118,700
1985 6.9~ 7.9~ 125,200
1986 5.9~ 6.7~ 126,500
1987 5.6~ 6.4~ 127,300
1988 4 9~ 5.3~ 130,760
1989 ,~ S~ .4,8~ 133,640
1990, Oct.F 5.1~ N/A~ 132,350
*Is not annually adjusted.
Labor rorce Data
Establishment Fmpiov~ient ( in Thousands)
Cct. 1990 Oct.. 198° x Change
Manufacturing: _
0
15
15.3
(i.9)~
Durables .
6
7 7.8 (2.5)~
Nondurables .
Non-Manufacturing:
4
8
7.2
16.7$
Contract construction .
Transportation, communications 5 1 0~
and utilities 5.1
7
7
0$
Trade - Wholesale
7.7
.
24
6
1.6$
Trade - Resale 25.0
4
6 .
6.3 1.6~
Finance/insurance/real estate . 37 1 - 5.1$
Services
39.0
12.9
12.0 ,
7.5$
Government
0
127 3.1
~2 '~
Total ' ~
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1~~'%
Earnings by major employment divisions in 1988 for St. Joseph County are as follows:
Percent of
Earnings
Industry Earnings
Services $ 763,414 27.5
Manufacturing 744,951 26.8
Wholesale/retail trade 490,349 17.7
Government 256,393 9.2~
Contract construction 178,301 6.4$
Transportation, communication
2~
6
and public utilities 173,387 .
Finance, insurance and real estate 149,313 5.4~
7~
Agriculture services, farming 20,241 •
1~
Mining 2.155 •
Total $2,778,504_ 100.0
Miscellaneous Economic Data
The following information concerning the City of Sou th Bend,. St. Joseph County and
the State of Indiana has been obtained `nom Bureau of Census Reports and the Indiar:a
State Library.
St. Joseph
South Bend County Indiana
Per capita personal income in 1987 $ 11,124 $ 11,697 $
628 $
20 11,078
536
20
Median family income in 1980 $ 18,899 $ , ,
Average weekly earnings in
manufacturing (1st qtr. of 1990)
N/A $
552.91 $ 568.43
Population per square mile in 1980
1982
i 3,023
000 $
100
$682 526.4 - 152.8
991,300,000 $25,747,000,000
n
Value added by manufacturing ,
,
Retail sales in 1987:
N/A $
.686,866,000 $33,097,064,000
1
Total retail sales N/A $ ,
6,938 $ 5,985
Sales per capita
Sales per establishment N/A $ 1,073,753 $ 1,000,425
-11-
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Historical Net Assessed Valuations of the City of South Bend
(Per St. Joseph County Auditor's Office)
Personal
Year
Payable Real Estate Utilities Provert~_ Total
-1981 $18,358,130 $112,828.,..582 $409,627,365
653
440
$278
1982 .
,
,
874,483 18,957,970 114,710,976 .413,.543,429
279
1983 ,
282,.619 20,455,950 122,148,057 .422,886,626
280
1984 ,
089,259 20,873,970 114,99.6,397 417,959,626
282
1985 ,
152,034 21,973,060 103,898,740 407,023,834
281
1986 ,
893,744 20,967,360 127,172,176 433,033,280
284
87
19 ,
897,178 20,633,920 123,167,379 429,698,477
285
.
1988 ,
297,209 20,850,010 122,907,516 434.,054,735
290
1989 ,
823,013 20,343,450 121,251,803 434,418,266
292
*
1990 ,
776 20,268,470 131,705,499 646,730,745
756
494
,
.,
279,000 est.-~
607
1991 ,
NOTE:. The real property assessment in Indiana that .was effective March 1,
d
was based upon 1975 costs of land, material .and labor, an
1979
,
applied to 1979 taxes payable in 1980 through 1988 taxes payable in
The real property reassessment effective March 1, 1989 and is
1989
.
based upon 1985 costs of land, material and labor, and will apply to
1989 tares payable in '990 through 1994 taxes payable in 1995.. For
taxing purposes assessments are made at 33 1/3~ ofJtrue tax value. Net
-
less certain
assessed valuations represent the assessed value
deductions, such as deductions for mortgages, veterans, the aged, the
blind and tax-exempt property.
The net assessed valuations also do not include valuation of.the City's
Urban Enterprise Zone,- abated valuations, .and tax incremental assessed
valuation: The personal property assessed value of the Urban Enterprise
Zone totalled $24,468,820 for tax year payable 1990. This valuation is
removed from the tax rolls for a period of ten years which began in
1984. Real and personal property tax abatements reduce the taxable
valuation of property by decreasing amounts over a term of up to ten
848;630
$32
1990
.
,
was
years. The total abated valuation in payable year
The tax incremental assessed valuation which will eventually become part
of the tax base totalled $28,447,694.
* According to the St. Joseph County Auditor's office, appeals have been
filed regarding the property tax values; consequently, the net assessed
value is subject to change.
-13-
...~;,-
,~;
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Detail of Net Assessed Valuation
of the City of South Bend
(Per St. Joseph County Auditor's Office.) D L ~ ~ C ;g~
For the tax year 1989 payable 1990.
Value of land and lots
Value of improvements
Total value of real estate
Less: Mortgage, veterans', age 65 and
other deductions
Tax-exempt property
Net value of real estate
Utilities
Personal Property
Less: Deductions
Net value of personal property
Total net assessed valuation
$107,255,041
596.847,900
704,102,941
(131,457,095)
(77,889,070)
494,756,776
20,268,470
$190,922,383
(59210.884)
_31.705.4UU
5646,730,745
-14-
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Large Taxvavers
The following is a list of large "taxpayers in the City of South Bend as shown by
Commissioners.
rd of Tax
B
the St. Joseph County Auditor's _
oa
office and the State
Net assessed valuations are .for taxes payable in 1990.
Net Assessed
Type of Business Valuation
Tax~ayer
Allied/Bendix Corporation Airplane and auto parts $21,361.,990
Indiana Bell Telephone Co. Telephone utility
9,876,030
Indiana Michigan Power Co. Electric utility
8,228,450
New Energy Company
.Ethanol plant
6,893,900
Hotel 6,324,370
`:arriott
P.:'~ General Corporation Military trucks 3,086,160
Ameritech Communications 4,769,080
5d~aard Rose of Indiana
:_partments and real estate
4,353,410
Northern Indiana Public 600
076
4
Service Co. Gas utility ,
,
• Electrical switches and boxes 4,063.630
RACO, Inc.
575 , 24~ 3620,
Total
The total net assessed valuation of the City of South Bend for the year payable
1990 is $646,730,745. The ten largest taxpayers represent 11.63 of the total
net assessed value.
-17-
Schedule of Bonded Indebtedness ~ 1 ~
The following schedule shows the outstanding bonded indebtedness of the City. of
South Bend and the taxing units overlapping its jurisdiction as of November 28,
1990 as reported by the respective taxing units.
.Percent Amount
Allocable Allocable
to City of to City of
l Debt South Bend South Bend
PYoverty Tax Suy ported Debt Tota
Direct Debt:
Redevelopment
Authority
$20,
660,000
(1) 100 $ 20,660,000
Park District 1, 050,000 (2) 100~a 1,050,000
000
100
5
Redevelopment District
5,
100,000
(3)
L00~
,
,
City of South Bend Capital
5
525
737
(4)
100
5,737,525
Lease Debt ~ , ,
32.547,525
Total Direct Debt
Overlapping Debt:
625,000
6
(5) 44.6 2, 954,750
St. Joseph County
Joseph County Public Library
St ,
1C,299,500 (6) 64.6 6,
7 653,477
442
229
.
South Bend Communit,~ Schools 10,937,128
871
3
6 (7)
(8) 66.1
:~3
2 ,
1, ,
454,733
Penn-Harris-Madison Schools ,
1
60, .
St. Joseph County Airport i
000
o00 (9)
~~.6= 847,400
Authority ,
,
Mishawaka Penn Township 000
500
2 (10) 2.1~s 52.500
Public Library ,
,
19, 192.3Q2
Total Overlapping Debt
Total Direct and Overlapping Indebtedness S 51.739,827
~tevenue Supyorted Debt:
City of South Bend
$13,344,162 (11)
100 S13 , 344 , 162
Additional debt which is not an
obligation of the City includes:
T_a~: incremental Financing Bonds S 7 700;000 (12)
-18-
•
A .,
~ ,
- '
Notes~.to.Bonded Indebtedness ~ ~C a ~ l~a~
(1) Proposed 1990 Taxable Lease Rental Revenue Bonds (Airport
nt Project) 4 200,000
$
Economic Development Area Public Improveme
Bonds (Airport
Proposed 1990 Tax-Exempt Lease .Rental Revenue
ect) 2 355,000
Economic Developm
l(SouthrBendeCentral
d
e
s
Bon
evenue
1990 Lease Rental R
ent Project) 4,895,000
Development Area Public Improvem
Bonds (Parking Garage Facility) 4,500,000
1988 Lease Rental Revenue
ski Stadium)
l 4 710,000
e
1988 Taxable Lease Rental Revenue Bonds (Cove
$20 , 660,_000
Total
Note: Although all the Redevelopment Authority Lease Rental
Revenue bond issues are supported by a property tax
pledge, the Coveleski Stadium Lease Rental Bonds are
the only bonds intended to be, and actually being,
ntal
R
e
paid from a property tax levy.. The other Lease
including this proposed Bond issue
i ,.
ssues,
Revenue bond
e intended to be paid (and those issued actually are
ar
being paid) primarily from tax increment revenues and
other revenues such as parking garage revenues.
S 1.050..000
(2) 1982 ?ark District Bonds.
(3) 1990 Redevelopment District Bonds .(Studebaker Corridor $ ,~ 900,000
Project) 200,000
.1972 Redevelopment District Bonds
$ 5.100,000
Total
$ 3,673,636.
(4) Century Center Civic. Center Lease 255,207
Studebaker Museum Land Contract 1,129,947
Master Equipment Lease 395,945
Police, Fire, EMS CAD Computer System 181,748
Leaf Loaders 101,042
Fire Rescue Unit and Ambulance
$ 5,737,525
Total
(5)
St. Joseph County Capital Improvement Bonds $ 4,800,000
625,000`
St. Joseph County Park Bonds 1 200,000
Jail Renovation Bonds of 1979
$ 6,625,000
Total
*Will pay off on 12/30/90
~J
The County Auditor's office stated that $1,825,-000 of additional
debt will be issued in December, 1990 with a one year payout.
2,455,000
(6) South Bend Library Leasing Corporation $ (5.500) $ 2,449,500
Less cash and investments 3,900,000
G.O. Bonds - Series, 1988 3 950.000
G.O. Bonds - Series, 1989
Total
-19-
$10,299,500
(7)
G.O. .Bonds of 1988
South Bend Middle School-Building
Corporation
Less cash and investments
Common School Fund Loans
Judgement Funding Bonds of 1990
School Bus Loans
$ 5,355,000
(3,252)
Total
2,545,000
(8) Bittersweet School Building .Corporation $ (681.681)
Less cash and investments
PH.M School Building Corporation Refunding
(private)
Elm Road School Building Corporation Bonds '86
(private)
Penn High School Building Corporation
Participation Certificates of 1987
Brick Road School Building Corporation Bonds
of 1988 (private)
Common School Fund L oars
Veterans Memorial Loan
Total
Zn addition the School Corporation anticipates. $1,500,000
of additional Common School Funds Debt payable in 1992 for
20 years at 5~.~
(9) St. Joseph County Airport Authority
G.O. Bonds - 1977
G.O. Bonds - 1985
Total
(10) 1987 General Obligation Refunding Bonds
(11) 1989 Sewage Works Revenue Bonds
Capital Lease Debt:
Sale. Leaseback of Off-Street Parking Facility
Clay Utilities
Solid Waste Equipment
Total
(12) 1985 Tax Increment Financing Bonds
198E Tax Increment Financing Bonds
1988 Tax Increment Financing Bonds
Total
a+.•.t.
~ ~ Y '. y
^ ..I
wTotes to Bonded Indebtedness (font' d) ~~~ ~ ~ j~gp
$ 3,550,000
5,351,748
1,283,002
400,000
352.378
S10,937,128
$ 1,863,319
8,370,000
4,615,000
37,694,309
5,962,831
1,802,912
305.500
S60.613.871
$ 900,000
1.000.000
S 1.900.000
S 2,500.000
$ 9,500,000
3,040,000
625,000
179 162
S13,344,162
$ 4,150,000
1,750,000
1,800,000
•
S 7,700
-20-
~ `.~' ~' ..
~C
T'TQ
i '
Debt Ratios ~ ~,~,~
- ,
.. ~ .
The following schedule presents the ratios relative to the property tax
supported and property-tax secured indebtedness of -the taxing units overlapping
the City of South Bend as of November 28, 1990.
Allocable Total
Direct Debt Portion Direct and
Including of All Other Overlapping
Proposed Tax-.Supported Supported
Issue Debt Debt
$32,547,525 $19,192.302 $51..739.827
Per capita (1) $306.50. $180.74 $487.24
Percent of net assessed
03
5
97 8.00
2
valuation (2) . .
Percent of assumed market
value (3) 1.68 .99~ 2.67
(1) Based upon 1988 census: data, the populati on of the City of South Bend is
estimated at 106,190.
. (2) The net assessed valuation of the City of South Bend for taxes payable in
'
1990 is $64b,730,745 according to the St. J s office.
oseph County Auditor
(3) Assumes that the net assessed valuation is 33 1/3~ of fair market value.
•
-21-
APPENDIX C
H..J. UMBAUGH ~ ASSOCIATES
eczfCficd ~u~ltc o4ecounEanEs
~ SUITE 100, 9100 MERIDIAN SQUARE PLYMOUTH OFFICE
MYRON h. FRASIER. C. P. A. 12191 935-5178
ROGER L.UMBAUGH.C.P.A. 20.EAST 91=+T STREET
~~ EDWARD W. GUNTZ. C. P. A. P. O. BOX 40458
GERALDG.MALONE.C.P.A. INDIANAPOLIS, INDIANA 46240-045 8
CHARLES A. DALTON. C. P. A. TEL'cPHONE 13171 844-7288
OAVIO C. FREDERICK, C. P. A.
TELECOPIER 13171 848'3604
riERSCtIELI J. UMBAUGii. C. P. A.
11915-1 9 8 91
December 18, 1990
South Bend Redevelopment Authority
City of South Bend
1200 County-City Building
South Bend, Indiana 46601
Re: $4,200,000 TAXABLE Lease Rental Revenue Bonds
Members of the Redevelopment Authority:
_ In connection with the issuance of $4,200,000 principal amount of Taxable Lease
Rental Revenue Bonds, we have, at your request, compiled this special purpose.
report including the following schedules:
Pa e s
2_3 General Comments
4 Summary of Estimated Project Costs and Funding
5 Schedule of Amortization of $4,200,000 Proposed Taxable
Lease Rental Bonds
6 Maximum Zease Payment Schedule
7 Analysis of Debt Service and Estimated Tax Increment
g Bond Year Schedule
Zn the preparation of these schedules, assumptions were made. as noted regarding
certain future events. As 'is the case with such assumptions regarding future
events and transactions, some or all may not occur as expected and the resulting
differences could be material. We have not examined the underlying assumptions
nor have we audited the historical data. Consequently, we express no opinion
thereon nor do we have a responsibility to prepare subsequent reports.
~ ,,
, ~ ..~ a-,
SOUTH BEND (INDIANA) REDEVELOPMENT AUTHORITY ~ tC 2 g ~~~J
GENERAL COMMENTS
~ he Redevelopment Authority of the City of South Bend, Indiana (the "Authority")
T
a is issuing $4,200,000 of Taxable Lease Rental Revenue Bonds (the "Taxable ease
Rental Bonds".) Proceeds from the sale of the Taxable Lease Rental Bonds,. after
payment of issuance expenses, will be used for constructing roads and acquiring
land (collectively, the "Projects") in support of the City of South Bend's
- Airport 2010 project.
A lease dated as of August 1,1990 and restated and amended on December 21, 1990
{the "Lease") has been executed between the Authority and the South Bend
Redevelopment Commission (the "Commission".) The Lease provides, among other
i things, for the Commission to make semi-annual lease. payments to the Authoyi~yo
after completion of the Projects in amounts that will enable the Authorit
pay the principal, interest and fiscal agency fees on the Bonds. In order to
~ have funds to make the lease payments, the Commission will levy a sufficient
debt service property tax rate on all taxable property within its taxing
- boundaries which are coterminous with the corporate boundaries of the City of
-~_ South Bend. However, the Commission anticipates the tax increment within the
tax allocation area to be sufficient to provide funds to make the lease payments
without a tax levy being imposed.
- Summary of Estimated Pro"ect Costs and rundin - Page 4
This schedule presents known and estimated project costs.
- The Taxable Lease Rental Bonds will be the source of funding for the proposed
Projects.
Schedule of Amortization of 4 200 000 Taxable Lease Rental Bonds - Pa e 5
The amortization of the $4,200,000 Taxable Lease Rental Bonds is presented in
- this schedule. The bonds will mature serially over a period of approximately
twenty-one years and seven months with the final bonds due August 1, 2012. The
~ bonds are amortized based at an assumed interest rate of 10 1/Z~. Actual
! interest rates will be determined by competitive bidding.
Maximum Lease Payment Schedule - Pase 6
The Lease provides for a maximum first semi-annual lease rental amount of
$600,000 which shall be due on the day the Projects are completed or July 28,
1992 whichever is later. If the Projects are completed later than July 29,
1992, the first installment will be pro-rated. However, after the sale of the
bonds, each semi-annual lease rental amount is to be reduced to an amount. which
will be equal to the principal and interest payments in any bond year, rounded
upward to the next $1,000 plus $4,000 for payment of fiscal agency charges, and
divided by two, as provided in the Lease.
A maximum lease payment schedule is provided on page 6.
(Continued on next page)
-2-
~,. .
SOUTH. BEND (INDIANA) REDEVELOPMENT AUTHORITY
GENERAL COMMENTS
Analysis of Debt Service and Estimated-Tax Increment - Page 7
(Cont'd)
The Redevelopment Commission anticipates that tax increment revenues will be
sufficient to meet the debt service payments when due. Capitalized interest in
the amount of $798,.216 will be available to augment the tax increment revenue in
the early years, so that the two sources combined will be sufficient to meet the
debt service. Estimated annual. tax increment revenues and capitalized interest
will provide a bond coverage ratio ranging from 1.00 to 1.11. To the extent
that tax increment revenues and capitalized interest are available to make debt
payments, no debt service tax levy will be required. It should be noted,
however, if none of the projected tax increment revenue were received, a debt
service tax levy would be required resulting in a ma:{imam debt service tax rate
of $.14 per $100 of net assessed value assuming a net assessed value of
$406,763,605 for the South Bend Redevelopment District.
Bond Year Schedule - Pa~e~8
The calculation of the bond years for the Lease Rental Bonds is presented in
this schedule. It is assumed that the Bonds will be dated January 1, 1991.
-3-
~.,~~~~ ~~~°1919
SOUTH BEND (INDIANA) REDEVELOPMENT AUTHORITY
SUMMARY OF ESTIMATED PROJECT COSTS AND FUNDING
i
Project Costs:
Land, construction, related costs and contingencies
Bond issuance costs
Underwriters discount
Capitalized interest
.Less interest earnings
Total estimated project costs
Project Funding:
Proposed Lease Rental Revenue Bonds
$3,280,000
108,000
34,000
798,216
(70,21b)
$4,200.D00
$~.?00,000
(Subject to the comments in the accompanying report
dated December 18, 1990 of H. J. Umbaugh & Associates.)
-4-
~ s_ ~y
f ~ j
"•:
' ~~C 1 9 X990
SOUTH BEND (INDIANA) REDEVELOPMENT AUTHORITY
SCHEDULE OF AMORTIZATION OF
REVENUE PBONDS
OO
;~ AMOUNT OF PROPOSED TAXABLE
Principal payable TAL
SE R
annually on August 1st
Interest pay able semi-annually, February 1 and Augus t 1
A ssumed interest rate of 10.5$.
Assumed dating of bonds, January 1, 1991.
Deb t Service
Bond Year
Ending
Principal Interest
t T
otal
August 1st Balance Principal Rate Interes
(-----__In.Dollars-------)
(---In Thou sands---)
1991 ~
$4,00 0
$ 10.50 $ 257,250 (1) $
000
441 257,250
441,000
- 1992 4,200 0
0 10.50
50~
1C ,
441,000 441,000
1993 ~
-x,200 0 .
50
10 441,000 .441,000
- 1994 4,200
~'
0 .
50
10 441,000 441,000
_~ 1995 4,200 40 .
50
10 41,000 481,000
1996 4,200
50 .
10.50 436,800 4$6,800
= 1997 4,160 90 50
10 431,550 521,550
- 1998 4,110
125 .
10.50 422,100 547,100
1999 4,020
145
10.50 ~
408,9,5 553,975
2000
2001 3,895
750
3
165
i0.50~ 393,750 558,750
„
,425
5
, 190 10.50€ 376,425 00
- 2002 3,585 210 10.50 356,475 566,475
• 2003 3,39.5
230
10.50
334,425 564,425
' 2004 3.,185
255
10.50
310,275 565,275
2005 2,955
280
10.50
283,500 56.3,500
~ 200b 2,700 310 10.50 254,100
_ 2007 2,420
340
10.50
2'21,550 561,550
_ 2008 2,110 380 10.50$ 185,.850 565,850
~ 2009 1,770 42
0 10.50 145,950 .565,950
2010 1,390 .
460
'S0~
10
101,850 561,850
2011 970
510
510 .
10.50
53,_550 563,550
-
I 2012
l $~00 $7,179,375 511.379,375
~ Tota s
I
(1) Includes seven month's interest..
to the .comments in the accompanying report
(Subject
dated December 18, 1990 of H. J. Umbaugh & Associates.)
i
-s-
~xr. ,i, zt 4
L' E C 1 9 ~99t)
SOUTH BEND (INDIANA) REDEVELOPMENT AUTHORITY
MAXIMUM LEASE PAYMENT SCHEDULE
(Assumes 10 1/2$ interest rate)
(Subject to the comments in the accompanying report
dated December 18, 199.0 of H. J. Umbaugh & Associates.)
-6-
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i
SOUTH .BEND (INDIANA) REDEVELOPMENT AUTHORITY
; $4,200,000 TA%ABLE LEASE REN
- TAL BONDS
. -
,I BOND_YEAR_SCHEDULE
_~~ Bond Year
Bond Years
From
Bond
Cumulative
-
,_
_ g
Endin
August_Ist
Retirement
__1/1/91__ -_-Years__ Bond Years
___________
96
19
$40,000
5.5833
5833
6
223.3333
329.1667
223.3333
552.5000
1997
1998 50,000
9:0,000 .
7.5833
33 682.5000
9167
072
1 1,235.0000
2,307.9167
1999
2000 125,000
145,000 8.58
9.5833 .
,
1,389.5833
2500
746
1 3,697.5000
443.7500
5
2001 165,000
000
190 10.5833
11.5833 .
,
2,200.8333 ,
7,644.5833
2002
2003 ,
210,000 12.5833
5833
13 2,042.5000
124.1667
3 1:0,287:0833
13,411.2500
2004
2005 230,000
255,000 .
14.5833
33 ,
3,718.7500
3333
363
4 17,130.0000
493.3333
21
2006
2007 280,000
310,000 15.58
16.5833
833 .
,
5,140.8331
333
978
5 ,
36;hi~.5000
`
'~~ 2008 ..340,000
0
00
380 1?.5
18.5833 .
,
7,061.6667 39,574.1667
~ 2009
2010 .
,
420,000 19.5833
5833
20 8,225.0000
468.3333
9 47,899.1667
57,367.5000
'
` 2011
2012 4160,000
510,000 .
21.5833 ,
11,007.5000 68,375.0000
- Totals: $4,200,000
~- 68,375.0000
68,375.0000
z Total bond years
Times interest at 10.5 (Assumed rate) $105.00
___________
$7,179,375
Total Interest ~~
34,187.50
Interest 1/20 of 1~ 68,375.00
Interest 1/10 of 1$ 85,468.75
! Interest 1/8 of 1~ -170,937.50
Interest 1/4 of 1~ 341,875.00
Interest 1/2 of ig 683,750.00
Interest
16.2798
Average Maturity
(Subject to the comments in the accompanying report
dated December 18, 1990 of H. J. Umbaugh & Associates.)
-8-
APPENDIX D
(Amended Lease to be provided by Baker & Daniels)
-~ `
t
APPENDIX E
(New Trust Agreement to be provided by Baker & Daniels)
~ 1
_~
"~
APPENDIX F
(proposed Form of Legal Opinion
to be provided by 5aker & Daniels)
.. lR : a T. R•.. ~..
TAX MATTERS
In the opinion of Baker & Daniels, South Bend, Indiana, Bond Counsel,
interest on the Taxable Lease Rental Bonds is exempt from taxation in
the State .of Indiana for all purposes except the Zndiana financial
institutions tax -and the Indiana inheritance tax.
INTEREST ON THE TAXABLE LEASE RENTAL BONDS IS NOT EXCLUDABLE FROM GROSS
-- INCOME OF THE OWNERS THEREOF FOR FEDERAL INCOME TAX PURPOSES UNDER
SECTION 103 OF THE INTERNAL REVENUE. CODE OF 1986, AS AMENDED.
_ The foregoing does not purport to be a comprehensive discussion of the
tax consequences of owning the Taxable Lease Rental Bonds. Prospective
owners of the Bonds should consult-their own tax advisors with respect
to the foregoing and other tax consequences of owning the Taxable Lease
Rental Bonds.