HomeMy WebLinkAbout1996-09-11 Resolution 110n ~ ,
RESOLUTION NO.
RESOLUTION OF THE- SOUTH BEND REDEVELOPMENT
AUTHORITY APPROVING AND RATIFYING THE SALE OF
SOUTH BEND REDEVELOPMENT AUTHORITY LEASE RENTAL
REVENUE REFUNDING BONDS SERIES 1996 A (SOUTH BEND
CENTRAL DEVELOPMENT AREA PUBLIC IMPROVEMENT
PROJECT) 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 March 13, 1996, adopted Resolution No. 107 (the "Bond Resolution") authorizing
the issuance and sale of bonds to be known as the "South Bend Redevelopment Authority Lease
Rental Revenue Refunding Bonds, Series 1996 A Bonds (South Bend Central Development Area
Public Improvement Project)" (the "Bonds") pursuant to IC 36-7-14.5 et sec,., in the aggregate
principal amount not to exceed Six Million and 00/100 Dollars ($6,000,000.00), the proceeds of
which are to be used to refund the South Bend Redevelopment Authority Lease Rental Revenue
Bonds (South Bend Central Development Area Public Improvement Project) (the "1990 Bonds")
issued in 1990 to finance the construction of certain public improvements in the South Bend
Central Development Area (the "Project") and certain other lease rental revenue bonds of the
Authority, and to pay the costs of issuance of the Bonds; and
WHEREAS, the Bond Resolution authorized the President to enter into a bond
purchase agreement (the "Bond Purchase Agreement") to provide for the sale of the Bonds to
City Securities Corporation; and
WHEREAS, the financial advisor to the Authority had determined that it is in the
• best interest of the Authority to refund only a portion of the 1990 Bonds at the present time; and
w
WHEREAS, as part of the sale of the Bonds, the redemption terms provided in the
• Bond Resolution have been modified and the Authority desires to amend Section 3 of the Bond
Resolution to provide for the new redemption terms; and
WHEREAS, the President of the Authority has executed a Bond Purchase
Agreement providing for the refunding of those 1990 Bonds maturing on February 1 in the years
2004 to and including 2012 in an aggregate principal amount of $3,790,000 (the "Refunded
Bonds"); and
WHEREAS, the Authority previously entered into a lease between the Authority
and the South Bend Redevelopment Commission (the "Commission") dated as of November 1,
1989, as amended by an Addendum to Lease entered into by the Authority and the Commission
and dated as of April 6, 1990 (collectively, the "Lease"), pursuant to which the Authority is
leasing the 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 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 1990 Bonds (the
"Trustee") for the Refunded Bonds as required by Section 4.02 of the trust agreement entered into
by the Authority and the Trustee and dated as of November 1, 1989;
NOW, THEREFORE, BE IT RESOLVED, by this South Bend Redevelopment
Authority as follows:
• -2-
Section 1. The Authority hereby approves and ratifies the execution of the
• Bond Purchase Agreement providing for the sale of the Bonds in an aggregate principal amount
of Three Million Seven Hundred Ninety Thousand and 00/100 Dollars ($3,790,000.00) to refund
the Refunded Bonds.
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 September 1, 1996, 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. Section 3 of the Bond Resolution is amended and replaced with the
following:
Section 3. The Bonds may be redeemed prior to maturity,
at the option of the Authority in whole or in part, in whole multiples of
$5,000 on February 1, 2006, or any date thereafter from any moneys made
available for that purpose, at a redemption price expressed as a percentage
of the principal amount of each Bond to be redeemed in accordance with
the following schedule, plus interest accrued on the Bonds so redeemed to
the date fixed for redemption:
. -3-
• Redemption Date Optional Redemption Price
February 1, 2006, or thereafter on or
before January 31, 2007
February 1, 2007, or thereafter on or
before January 31, 2008
February 1, 2008, and thereafter prior
to maturity
101%
105.5%
100%
Section 5. This Resolution shall be in full force and effect after its adoption
by the Authority.
Adopted at a meeting of the Authority held on September 11, 1996, in Room 1308,
County-City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601.
C7
CITY OF SOUTH BEND
REDEVELOPMENT AUTHORITY
Gli. ICJ ~--~
By:
osep W. Wroblewski,
President
ATTEST:
Mar O. Ferlic, ecretary-Treasurer
J:\WPDOCS\RRROMPOL~STHBENDWUTHREF.96~LESOLUTI.ONS\RALEASE.ADD
• -4-