The URL can be used to link to this page

Home My WebLink About2023-02-06 Common Council 2023 TIF Bond PresentationDepartment of Community Investment Department of Administration & Finance February 6, 2023 CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Bill No. 23-02 -Resolution Approving Bond Financing Lease Today’s presenters: •Benjamin Dougherty, Deputy City Controller (Admin & Finance) •Phil Faccenda, Bond Counsel (Barnes & Thornburg) •Emma Adlam, Municipal Advisor (Baker Tilly) CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Bill No. 23-02 -Resolution Approving Bond Financing Lease Projects being financed: •Neighborhood improvement projects ($34.7M) •Beacon Lifestyle District parking garages ($28.9M) Council approvals requested under this Resolution: 1.Transfer of a portion of Portage Ave.by the Board of Public Works to the Redevelopment Authority →“Leased Premises” 2.Execution of the bond financing lease between the Authority and the Redevelopment Commission →“Lease” 3.Issuance of the bonds, which will be payable from TIF revenues paid by the Commission to the Authority under the Lease CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Financing Structure Issuance of bonds to fund projects, not to exceed $69 million Redevelopment Authority Projects (Series A and Series B) Redevelopment Commission TIF Revenues (River East and River West) New Debt Lease Lease payments from the Commission to the Authority in exchange for use of the Leased Premises Debt service payments, not to exceed 20 years CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Financing Structure Issuance of bonds to fund projects, not to exceed $69 million Redevelopment Authority Projects (Series A and Series B) Redevelopment Commission TIF Revenues (River East and River West) New Debt Lease Lease payments from the Commission to the Authority in exchange for use of the Leased Premises Debt service payments, not to exceed 20 years CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Series A Bonds –Neighborhood Improvement Projects River West projects: •$2.5M for Walker Field Improvements and pedestrian connection to Rum Village •$800K for Southeast Park upgrades, including splashpad and playground resurfacing •$5M to match potential $5M grant award for comprehensive Kennedy Park improvements CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Series A Bonds –Neighborhood Improvement Projects River West projects (continued): •$2M for Portage-Elwood sidewalk project •$3M for River Bridge Connecter pedestrian bridge •$2M for Linden Streetscape project •$3M for MLK Dream Center park improvements CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Series A Bonds –Neighborhood Improvement Projects River East projects: •$5M for Lasalle Avenue Streetscape improvements •$3M for Mishawaka Avenue Streetscape improvements •$300K for Coquillard Park splashpad upgrades •$2M for Hill Street trail project •$2M for SB Avenue Improvements CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Financing Structure Issuance of bonds to fund projects, not to exceed $69 million Redevelopment Authority Projects (Series A and Series B) Redevelopment Commission TIF Revenues (River East and River West) New Debt Lease Lease payments from the Commission to the Authority in exchange for use of the Leased Premises Debt service payments, not to exceed 20 years CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Series B Bonds –Beacon Lifestyle District Project Public parking garage construction: •Two parking structures, likely constructed about one year apart •More than 900 public parking spaces •Site preparation •Potential skyway to support the Beacon Integrative Health & Lifestyle District CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Series B Bonds –Beacon Lifestyle District Project Beacon Integrative Health and Lifestyle District: -149 Market-Rate Apartments -92 Income Qualified Apartments -105 bed hotel -50,000 sq. ft. Beacon Health and Fitness Center -35,000 sq. ft. medical office space -927 structured parking spaces -8,500 sq. ft. retail District will include more than $140M in private investment as part of the Lifestyle District and support an additional $232M investment by Beacon Health System in their Memorial Hospital Tower project CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Financing Structure Issuance of bonds to fund projects, not to exceed $69 million Redevelopment Authority Projects (Series A and Series B) Redevelopment Commission TIF Revenues (River East and River West) New Debt Lease Lease payments from the Commission to the Authority in exchange for use of the Leased Premises Debt service payments, not to exceed 20 years CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT $17.57 $17.49 $16.90 $18.27 $18.37 $7.14 $8.64 $8.38 $9.88 $9.95 $2.24 $2.06 $1.89 $1.89 $1.88 $0.37 $0.17 0.17 $0.32 $0.33 $0.29 $0.29 $0.30 $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 2019 2020 2021 2022 2023Revenue in Millions TIF Revenues ($m) River West River East South Side Douglas Road West Washington CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Debt Service Expectations •Bonds will be payable from River West and River East TIF revenues, backed by authorization for a special tax levy (as an assurance to bondholders) •Anticipated coverage ratio is more than 200% (based on an assumption of no growth in TIF revenues) •Maximum annual debt service will be $10.5M, based on maximum bond parameters •Maximum term of 20 years, based on maximum bond parameters CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Bond Issuance Next Steps •With assistance from Barnes & Thornburg and Baker Tilly: •Remaining approval steps (Commission on 2/9; Authority on 2/10) •Selection of underwriter and preparation for bond sales •Series A expected to be issued this spring •Series B issuance dependent on planning with Beacon