HomeMy WebLinkAboutResolution No. 3565 (Approving Execution of Lease COSB 2023 Project Financing)Redevelopment Commission Agenda Item
DATE: Dec. 19, 2022
FROM: Caleb Bauer, Executive Director of DCI
SUBJECT: Resolution Authorizing Execution of Lease with South Bend Redevelopment Authority
Funding Source* (circle one) River West; River East; South Side; Douglas Road; West Washington; RDC General
*Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller,
then the authorization of the expenditure of such funds shall be void and of no effect.
Purpose of Request: Authorization of Proposed Lease with South Bend Redevelopment Authority
for issuance of Tax-Exempt Lease Rental Revenue Bonds, Series A, and Taxable Lease Rental
Revenue Bonds, Series B
Specifics: The proposed lease would initiate the process of issuance of a pair of TIF-funded bonds
to finance a number of Public Improvement Projects in the River West and River East TIF
Districts, including:
River East
•Lasalle Avenue Streetscape Improvements (between MLK and Eddy St)
•Phase I and Phase II of shared-use path to improve bicycle and pedestrian access
between downtown and Notre Dame
•Mishawaka Avenue Streetscape Improvements (Between Longfellow and
Emerson)
•Coquillard Park Splash Pad Upgrades
River West
•Kennedy Park Funding Match for state grant program to make significant
improvements to the park
•Portage-Elwood Sidewalk Project to improve pedestrian safety and activate
storefronts near Portage-Elwood intersection
•Martin Luther King Jr. Dream Center park Improvements, including splashpad,
playground, basketball courts
•Linden Avenue Streetscape Improvements (between College and Birdsell)
•Southeast Park improvements, including splashpad and playground resurfacing
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
12.19.22
X
P age | 2
•River Bridge Connector Pedestrian Bridge to connect trail systems across the St.
Joseph River
•Walker Field and Connection to Rum Village Improvements to enhance the
historic Walker Field pavilion and provide better pedestrian connection to Rum
Village
The Taxable Lease Rental Revenue Bond, Series B would fund the construction of two structured
parking garages and other site preparation work to support the Beacon Integrative Health and
Lifestyle District, which will support more than $350 million in private investment.
If approved, South Bend Common Council will hear resolution authorizing bond issuance.
RESOLUTION NO. 3565
A RESOLUTION OF THE SOUTH BEND
REDEVELOPMENT COMMISSION AUTHORIZING THE EXECUTION
OF A LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT AUTHORITY AND
THE SOUTH BEND REDEVELOPMENT COMMISSION, AND ALL MATTERS
RELATED THERETO
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 Commission, pursuant to declaratory resolutions previously adopted by
the Commission and amended from time to time, the Commission has declared (i) a certain are a
of the City of South Bend (the “City”) known as the “River East Development Area” (the “River
East Area”) as a redevelopment area and an allocation area under the Act and approved a
redevelopment plan for the Area (ii) a certain area of the City of South Bend (the “City”) known
as the “River West Development Area” (the “River West Area”) as an economic development area
and an allocation area under the Act and approved an economic development plan for the Area;
and
WHEREAS, the Commission has given consideration to undertaking local public
improvement projects in the River West Area including all or any portion of the following: (i)
River Bridge Connector (plus Madison) to South Bend-Notre Dame Trail which consists of Phase
3 of the trail project (the “Trail Project”) to construct a pedestrian bridge to connect the trail from
the University of Notre Dame campus to the City’s downtown, and any related improvements; (ii)
Linden improvements which consists of streetscape improvements in coordination with the Martin
Luther King Jr. Dream Center, from College to Birdsell, including improvements for bikes and
pedestrians, and any related improvements; (iii) Kennedy Park improvements which consist of
natural and aquatic improvements to the existing park and any related improvements to increase
accessible recreation resources on the west side of the City; (iv) South East Park improvements
which consist of improvements to the park, including splashpad improvements and playground
resurfacing, and any related improvements; (v) Martin Luther King Jr. Dream Center
improvements which consist of exterior park redevelopment, including without limitation
splashpad, playground, basketball court, other related park amenity improvements, and any related
improvements; (vi) Rum Village Park Plan improvements which consist of enhancements to the
historic pavilion and the Park including exterior restoration and stabilization of the fieldstones,
broad arches, and courtyard, and any related improvements; and (vii) all projects related to any of
the projects described in clauses (i) through and including (vi) (clauses (i) through and including
(vii), collectively, the “River West Improvements”); and
WHEREAS, the Commission has given consideration to undertaking additional local
public improvements in the River West Area to support and provide incentives to foster the
development of the Beacon Integrated Health and Lifestyle District project, said project having
been awarded up to a $11,780,000 Regional Economic Acceleration and Development Initiative
grant by the South Bend-Elkhart Regional Development Authority, which local public
2
improvements include, without limitation, site work, construction of up to two (2) public parking
garages and a skyway improvement, and any projects related to the foregoing (collectively, the
“Beacon District Improvements”); and
WHEREAS, the Commission has given consideration to undertaking local public
improvement projects in the River East Area including all or any portion of the following: (i)
LaSalle Streetscape which consists of a road diet with a focus on bike and pedestrian improvements
from Martin Luther King Boulevard to Eddy Street and any related improvements; (ii) Hill Street
Trail (South Bend Avenue to LaSalle Street) which consists of Phase 2 of the Trail Project to
construct a shared use path and any related improvements to improve bicycle and pedestrian
facilities between the University of Notre Dame campus and the City’s downtown; (iii) South Bend
Avenue (Hill Street to Notre Dame Avenue) and Hill Street Intersection which consists of Phase
1 of the Trail Project to construct a shared use path and any related improvements to improve
bicycle and pedestrian facilities between the University of Notre Dame campus and the City’s
downtown; (iv) Mishawaka Avenue Streetscape Improvements which consist of a road diet and
improved parking from Longfellow Street to Emerson Street, storm sewer separation, and any
related improvements; (v) Coquillard Splashpad which consists of upgrading the splashpad at
Coquillard Park to modern health, safety, and experiential standards, and any related
improvements; and (vi) all projects related to any of the projects described in clauses (i) through
and including (v) (clauses (i) through and including (vi), collectively (collectively, the “River East
Projects” and collectively with the River West Projects and the Beacon District Improvements, the
“Projects”); and
WHEREAS, the South Bend Redevelopment Authority (the “Authority”) has been
established pursuant to the applicable provisions of Indiana Code 36-7-14 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, on December 8, 2022, the Commission at a duly advertised and noticed public
meeting, adopted its Resolution No. 3564 approving a proposed form of lease (the “Lease”) with
the Authority, as Lessor, for all or a portion of Portage Avenue in the City from its intersection
with Cleveland Road to its intersection with Angela Boulevard (the “Leased Premises”) in order
to provide increased redevelopment and economic development and job creation opportunities for
the residents of the City and the Commission scheduled a public hearing regarding the Lease to be
held on December 19, 2022, at 9:30 a.m. (local time), in Room 1308 of the County-City Building
located at 227 West Jefferson Boulevard, South Bend, Indiana, and published notice of such public
hearing on the Lease in accordance with applicable Indiana law; and
WHEREAS, on this date said public hearing has been held, and all interested parties have
been provided the opportunity to be heard at the hearing; and
WHEREAS, the Commission intends to pay rent to the Authority (the “Rental Payments”)
pursuant to the terms of the Lease, at a rate not to exceed Ten Million Five Hundred Thousand
Dollars ($10,500,000.00) per year, in semiannual installments, with a term no longer than Twenty
(20) 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 (20) years after such date of acquisition by
the Authority; and
3
WHEREAS, the Commission expects the Authority to consider the issuance of lease rental
revenue bonds in one (1) or more series for the purpose of (i) financing the cost of funding all or
any portion of the costs of the Projects and related expenses; (ii) funding a debt service reser ve
fund, if necessary in connection with the issuance of bonds to finance the costs of the Projects or
purchasing a surety bond to satisfy a reserve requirement; and (iii) pay costs incurred in connection
with the issuance of said bonds and which bonds will be payable from the Rental Payments; and
WHEREAS, the Commission seeks to authorize execution of the Lease and authorize the
publication, in accordance with Indiana Code. 36-7-14-25.2 and Indiana 6-1.1-20-5, of a Notice of
Execution and Approval of Lease;
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND
REDEVELOPMENT COMMISSION, AS FOLLOWS:
SECTION 1. The Commission hereby finds and determines that (i) the terms of the Lease
are based upon the value of the Leased Premises, and the Rental Payments to be paid by the
Commission, pursuant to the terms of the Lease, at a rate not to exceed Ten Million Five Hundred
Thousand Dollars ($10,500,000.00) per year, in semiannual installments, with a term no longer
than twenty (20) 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 (20) years (the “Term”) after
such date of acquisition by the Authority, are fair and reasonable, (ii) the use of the Leased
Premises throughout the term of the Lease will serve the public purpose of the City and is in the
best interests of its residents, and (iii) the execution and delivery of the Lease is needed.
SECTION 2. The President or Vice-President and the Secretary of this Commission are
hereby authorized and directed, on behalf of the City, and subject to obtaining approval from the
Common Council of the City (the “Common Council”), to execute, attest, and deliver the Lease in
substantially the form presented at this public meeting with such changes in form or substance as
the President or Vice-President of this Commission shall approve, such approval to be conclusively
evidenced by the execution thereof; provided that the Rental Payments and the Term shall not
exceed the amounts set forth in Section 1 hereof.
SECTION 3. The Secretary of the Commission is hereby directed to transmit to the
Common Council a copy of this Resolution and the Lease and to request the Common Council to
adopt a Resolution approving the Lease and its execution by the Commission and the Authority,
prior to the execution of the Lease.
SECTION 4. The Commission hereby authorizes the publication, in accordance with
Indiana Code 5-3-1 and 36-7-14-25.2, of the Notice of Execution and Approval of Lease, following
execution of the lease by the Commission.
SECTION 5. The President, Vice-President and Secretary of this Commission, and each
of them, is hereby authorized and directed to take all such further actions and to execu te all such
documents or instruments as are desirable to carry out the transactions contemplated by this
Resolution, in such forms as the President, Vice-President or Secretary executing the same shall
deem proper, such desirability to be conclusively evidenced by the execution thereof.
SECTION 6. This Resolution shall be in full force and effect from and after its adoption
4
by the Commission.
ADOPTED at a meeting of the South Bend Redevelopment Commission held on December
19, 2019, in Room 1308, County-City Building, 227 West Jefferson Boulevard, South Bend,
Indiana, 46601.
SOUTH BEND REDEVELOPMENT COMMISSION
By:
Marcia I. Jones, President
ATTEST:
Troy Warner, Secretary
DMS 24515743v1