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Home My WebLink About1993-07-08 Resolution 78RESOLUTION NO. 78 RESOLUTION OF THE SOUTH BEND REDEVELOPMENT AUTHORITY RATIFYING THE EXECUTION OF A BOND PURCHASE CONTRACT FOR THE SALE OF THE~SOUTH BEND REDEVELOPMENT AUTHORITY TAXABLE LEASE RENTAL ACQUISITION AND REFUNDING REVENUE BONDS OF 1993 (AIRPORT ECONOMIC DEVELOPMENT AREA PUBLIC IMPROVEMENT PROJECT), APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE BETWEEN THE AUTHORITY AND THE REDEVELOPMENT COMMISSION FOR THE AIRPORT ECONOMIC DEVELOPMENT AREA PUBLIC IMPROVEMENT TAXABLE PROJECT AND CERTAIN OTHER RELATED MATTERS WHEREAS, the South Bend Redevelopment Authority (the "Authority") at a meeting on June 29, 1993, adopted Resolution No. 77 (the "Bond Resolution") authorizing the issuance and sale of bonds to be known as the "South Bend Redevelopment Authority Taxable Lease Rental Acquisition and Refunding Revenue Bonds of 1993 (Airport Economic. Development Area Public Improvement • Project)" (the "Bonds") pursuant to IC 36-7-14.5 et se ., in the aggregate principal amount not to exceed Five Million and 00/100 Dollars ($5,000,000), the proceeds of which are to be used to: (i) refund the South Bend Redevelopment Authority Taxable Lease Rental Revenue Bonds (Airport Economic Development Area Public Improvement Project) (the "Refunded Bonds") issued in 1991 to pay the costs of constructing and acquiring certain. land and public improvements located in the Airport Economic Development Area (the "Area"); (ii) acquire additional land and construct certain public improvements in the Area; and (iii) pay the costs of issuance of the Bonds; and WHEREAS, the Authority previously entered into a Lease between the Authority and the South Bend Redevelopment Commission (the "Commission") dated as of August 1, 1990, which was subsequently amended as of January 29, 1991 (collectively, the "Lease"), pursuant to which the Authority is leasing the Taxable • Project 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 payments; and WHEREAS, the Authority authorized the President of the Authority to execute and deliver a Bond Purchase Contract (the "Contract") with City Securities Corporation (the "Underwriter"), the terms and conditions of which will permit the reduction in the annual Lease rental payments; and WHEREAS, the Authority desires to publish notice of the execution and delivery of the Contract for the sale of the Bonds; . and WHEREAS, the Authority intends to send written notice of redemption (the "Notice of Redemption") to Society National Bank, Indiana, as trustee (the "Trustee") of the Refunded Bonds as required by Section 4.02 of that certain Trust Agreement between the Authority and the Trustee, such Agreement dated as of December 1, 1990 (the "Trust Agreement"); NOW, THEREFORE, BE IT RESOLVED, by this South Bend Redevelopment Authority as follows: Section 1. The Authority hereby ratifies and approves the Contract executed and delivered by the President of the Authority to the Underwriter which provides for the sale of the Bonds in the aggregate principal amount as set forth at Exhibit B i• -2- attached hereto and incorporated herein, such Bonds maturing on the • dates and at the principal amounts and bearing interest at the rates also set forth at Exhibit B. Furthermore, the Secretary of the Authority is authorized and directed to publish notice of the execution and delivery of the Contract as provided for by Indiana Code 36-7-14.5-24, in the Tri-County News and the South Bend Tribune on July 9, 1993, in the form as presented to this meeting of the Authority. Section 2. The Addendum attached hereto as Exhibit A is hereby approved and the President or Vice-President and the Secretary-Treasurer are hereby authorized to execute said Addendum. The Lease shall be amended to be effective as of the date when the Authority deposits or causes to be deposited proceeds derived from the sale of the Bonds into an escrow fund to be established by that • certain Irrevocable Escrow Deposit Agreement between the Authority and Society National Bank, Indiana, such Agreement to be dated as of July 1, 1993, to reduce the annual rental payments payable in the semi-annual installments to the amounts contained in 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 July 15, 1993. • -3- Adopted at a meeting of the Authority held on July 8, 1993, at 1308 County-City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. CITY OF SOUTH BEND REDEVELOPMENT AUTHORITY J ep W. Wroblewski, P si ent EST: o-~i~-~~~ ~~ Donald K. Fewell, Secretary- Treasurer \rrrompol\sthbend\airpttax.ref\lubondco.nt;07/06/93 i• -4- ADDENDUM TO LEASE Addendum to Lease Between South Bend Redevelopment Authority, as Lessor, and South Bend Redevelopment Commission, as Lessee (Airport Economic Development Area Public Improvement Project) THIS ADDENDUM, entered .into as of the 9th day of .July, 1993 (the "Addendum"), between the South Bend Redevelopment Authority, a body corporate and politic organized and existing under IC 36-7-14.5 (the "Authority"), and the South Bend Redevelopment Commission (the "Lessee"), WITNESSETH• In consideration of the mutual covenants herein contained, it is agreed that the lease previously entered into between the Authority and the Lessee dated as of August 1, 1990, and as amended by the Addendum to Lease enter1991ntbothtofewhich Authority and Lessee dated as of January 29, , were recorded in the office of the Recorder of St. Joseph County, Indiana, (recording numbers 9102772 and 9102773 resp shalllbe (hereinafter collectively referred to as the "Lease"), amended as follows: 1. Section 4(b) of the Lease is amended to read as follows: (b) Taxable Project. The first semiannual rental installment in the amount of One Hundred Forty-Two Thousand and 00/100 Dollars ($142,000) shall be due on January 28, 1994. Thereafter such rentals shall be payable in advance in semiannual installments on January 28 and July 28 of each year as provided for in the lease payment schedule attached hereto as Exhibit E. In the case of the Tax-Exempt Project, the Lessee will not take any action or fail to take any action that would result in the loss of the exclusion from gross income for federal tax purposes of interest on the Bonds pursuant to Section 103(a) as tin Internal Revenue Code of 1986, as amended (the "Code"), effect on the date of delivery of the Bonds, nor will the Lessee act in any manner which would adversely affect such exclusion. The Lessee further covenants that it will no er iod thatlany tBond is do any other act or thing during the P Bond to be an outstanding hereunder which would cause any "arbitrage bond" within the meaning of Section 148 of the Code and the regulations thereunder as in effect on the date of delivery of the Bonds. All officers, members, employees and agents of the Lessee are authorized and directed to provide certifications of facts and est the Lesseeaas of the datelthe Bonds are issuedaand expectations of to enter into covenants on behalf of the Lessee evidencing the • Lessee's commitments made herein. 2. The Lease is amended to replace Exhibit E with the following: EXHIBIT E" LEASE PAYMENT SCHEDULE FOR TAXABLE PROJECT Payment Date Amount 01/28/94 $142,000 07/28/94 $192,000 01/28/95 $190,500. 07/28/95 $190,500 01/28/96 $214,000 07/28/96 $214,000 01/28/97 $217,000 07/28/97 $217,000 01/28/98 $234,000 07/28/98 $234,000 01/28/99 $247,000 07/28/99 $247,000 01/28/00 $251,500 • 07/28/00 $251,500 500 $255 01/28/01 07/28/01 , $255,500 01/28/02 $258,500 07/28/02 $258,500 01/28/03 $260.,500 07/28/03 $260,500 01/28/04 $261,500 07/28/04 $261,500 01/28/05 $262,000 07/28/05 $262,000 01/28/06 $264,000 07/28/06 $264,000. 01/28/07 $265,000 07/28/07 $265,000 01/28/08 $264,500 07/28/08 $264,500 01/28/09 $268,000 07/28/09 $268,000 01/28/10 $270,000 07/28/10 $270,000 01/28/11 $271,000 07/28/11 $271,000 01/28/12 $273,000 07/28/12 $273,000 • -2- 3, The parties hereto acknowledge that all remaining . terms, covenants and conditions as set forth in the Lease between .the parties hereto shall remain in full force and effect. 4. This Addendum shall take effect as of the date (the "Deposit Date") when the Authority deposits or causes to be deposited proceeds derived from the sale of its South Bend Redevelopment Authority Taxable Lease Rental Acquisition and Refunding Revenue Bonds of 1993 (Airport Economic Development Area Public Improvement Project) into an escrow fund established pursuant to an Irrevocable Escrow Deposit Agreement, such Agreement to be dated as of July 1, 1993, between the Authority and Society National Bank, Indiana, for the purpose of refunding the South Bend Redevelopment Authority Taxable Lease Rental Revenue ,Bonds (Aidated Economic Development Area Public Improvement Project), January 1, 1991. Such Deposit Date shall be endorsed on this Addendum at the end hereof by the parties hereto as soon as the same can be done after the deposit into the Escrow Fund. and the Addendum shall be recorded as so endorsed. IN WITNESS WHEREOF, the undersigned have caused this Addendum to be executed for and on their behalf on the day and year first hereinabove written. J SOUTH BEND REDEVELOPMENT AUTHORITY, as Lessor B ~E y~ President J eph W. Wroblewski, TTEST: OfA~~ti~ Donald K. Fewell, Secretary-Treasurer By: ATTEST: ~T e F . Sher , Secretary SOUTH BEND REDEVELOPMENT COMMISSION, as Le see ~wr ~ ; Paula N. Auburn, President -3- • STATE OF INDIANA ) SS: COUNTY OF ST. JOSEPH ) Before me, the undersigned,. a Notary Public in and for said State, personally appeared Joseph W. Wroblewski and Donald K. Fewell personally known by me to be the President and Secretary, respectively, of the South Bend Redevelopment Authority -and acknowledged the execution of the foregoing Addendum to Lease for. and on behalf of said Redevelopment Authority. WITNESS my hand and Notarial Seal this ~ day of July, 1993. (SEAL) r ~'~,~~~ ~~ ~~/if%~ , tary Public Residing in ~ % _ ~~-<:- -~- County, Indiana My C mission E--xpires: ~~ -4- STATE OF INDIANA ) • ) SS: COUNTY OF ST. JOSEPH ) Before me, the undersigned, a Notary Public in and for said State, personally appeared Paula N. Auburn and Theo F. Sharp personally known by me to be the President and Secretary, respectively, of the South Bend Redevelopment Commission and acknowledged the execution of the foregoing Addendum to Lease for and on behalf of such Redevelopment Commission. WITNESS my hand and Notarial Seal this ~ ~'~~=day of July, 1993. ~~~ yC !/c_~fJ~~~1, Notary Public Residing in ~ ~-~.r,~-~--~ (SEAL) County, Indiana My Commission Expires: ~~T~~~~- ~ ~ yl>f- This instrument was prepared by Randolph R. Rompola, BAKER & DANIELS, 205 West Jefferson Boulevard, South Bend, Indiana 46601. rrrompola\sthbend\airpttax.ref\addendum.lea;drf;7-14-93 -5-