HomeMy WebLinkAbout1992-07-16 Resolution 60RESOLUTION NO. 60
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT AUTHORITY
APPROVING THE AWARD OF A REDUCED AGGREGATE PRINCIPAL
AMOUNT OF SOUTH BEND REDEVELOPMENT AUTHORITY LEASE
RENTAL REVENUE BONDS (PARKING FACILITY REFUNDING)
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 April 30, 1992, adopted Resolution
No. 52 (the "Bond Resolution") authorizing the issuance and sale
of bonds to be known as the "South Bend Redevelopment Authority
Lease Rental Revenue Bonds (Parking Facility Refunding)" (the
"Bonds") pursuant to IC 36-7-14.5 et seg., in the aggregate
principal amount not to exceed Four Million Six Hundred Ninety-
Five Thousand Dollars ($4,695,000), the proceeds of which are to
• be used to refund the South Bend Redevelopment Authority Lease
Rental Revenue Bonds (Parking Facility Project) (the "Refunded
Bonds") issued in 1988 to finance the construction of a parking
facility on real estate located at the northwest corner of St.
Joseph Street and Wayne Street in South Bend, Indiana (the
"Facility"), and to pay the costs of issuance of the Bonds; and
WHEREAS, the Authority at a meeting on June 22, 1992,
adopted Resolution No. 57 approving the award of the Bonds to
Prudential Securities, Inc., (on its behalf and on behalf of three
other underwriters) (the "Underwriter") in an aggregate principal
amount of Four Million Six Hundred and Sixty Thousand Dollars
($4,660,000); and
• WHEREAS, following the award of the Bonds, it has become
apparent that additional funds are available under the trust
agreement entered into by the Authority and Norwest Bank Indiana,
N.A. , and dated as of June 1, 1988, for the Refunded Bonds (the
"Refunded Bonds Trust Agreement"); and
WHEREAS, to account for the use of such additional funds
in the refunding of the Refunded Bonds to maximize savings to the
Authority, it has become necessary to negotiate with the
Underwriter to reduce the aggregate principal amount of the Bonds
awarded to an amount equal to Four Million Ninety-Five Thousand
Dollars ($4,095,000.); and
WHEREAS, Evensen Dodge, Inc., financial advisor to the
Authority, has determined the individual principal amounts of the
• Bonds necessary to adequately fund the escrow fund and Coopers &
Lybrand has verified that the individual principal amounts of the
Bonds as determined by the Financial Advisor will provide
sufficient funding of the escrow fund to refund the Refunded Bonds;
and
WHEREAS, the Underwriter has agreed to the award of the
reduced aggregate principal amount of the Bonds and the Authority
desires to approve the award of the Bonds in such reduced aggregate
amount to the Underwriter; and
WHEREAS, the Authority previously entered into a lease
between the Authority and the South Bend Redevelopment Commission
(the "Commission") dated as of June 1, 1988, as amended by an
Addendum to Lease entered into by the Authority and the Commission
-2-
. and dated as of July 29, 1988 (collectively, the "Lease"), pursuant
to which the Authority is leasing the. Facility to the Commission;
and
WHEREAS, the Authority desires to approve and execute an
addendum to the Lease (the "Addendum"), a copy of which is attached
hereto as "Exhibit A" and incorporated herein, reflecting lower
annual lease rental amounts; and
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 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 Four Million Ninety-
Five Thousand Dollars ($4,095,000) and maturing February 1 in the
years at the principal amounts and bearing interest at the rates
as follows:
Amount Years Interest Rate
$ 90,000 1993 3.25%
195,000 1994 4.25%
205,000 1995 4.60%
210,000 1996 4.90%
120,000 1997 5.10%
235,000 1998 5.30%
250,000 1999 5.50%
255,000 2000 5.70%
275,000 2001 5.80%
235,000 2002 6.00%
290,000 2003 6.00%
325,000 2004 6.10%
340,000 2005 6.20%
160,000 2006 6.25%
-3-
390,000 2007
370,000 2008
150,000 2009
6.30%
6.30
6.30%
Section 2. The Addendum attached hereto as Exhibit A is
hereby approved and the President or Vice President and Secretary-
Treasurer are hereby authorized to execute said Addendum. The
Lease shall be amended as of the date (the "Deposit Date") when the
Authority deposits or causes to be deposited a portion of .the
proceeds derived from the sale of the Bonds into an escrow fund
(the "Escrow Fund") to be established by that certain Irrevocable
Escrow Deposit Agreement, such Agreement to be dated as of June 1,
1992, to reduce the annual rental payments payable in semi-annual
installments. 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. This Resolution shall be in full force and
effect after its adoption by the Authority.
-4-
Adopted at a meeting of the Authority held on July 16,
1992, in the offices of the Authority, 1200 County-City Building,
227 West Jefferson Boulevard, South Bend, Indiana 46601.
CITY OF SOUTH BEND
REDEVELOPMENT AUTHORITY
By: I~'e W
Jo ph W. Wroblewski,
President
ATT~ T:
Donald K. Fewell, Secretary-
Treasurer
\rrrompol\sthbend\stjoeway\resoluti\luappadd;tmg;07/14/92
-5-