HomeMy WebLinkAbout6 RESOLUTION NO. 2023-1 MAKING FINDINGS RELATING TO THE FINANCING OF CERTAIN LOCAL PUBLIC IMPROVEMENTS TO SERVE ECONOMIC DEA RESOLUTION OF THE SOUTH BEND ECONOMIC
DEVELOPMENT COMMISSION MAKING FINDINGS
RELATING TO THE FINANCING OF CERTAIN LOCAL
PUBLIC IMPROVEMENTS TO SERVE ECONOMIC
DEVELOPMENT FACILITIES, APPROVING SUCH
FINANCING AND FORM OF LOAN AGREEMENT RELATED
THERETO
RESOLUTION NO. 2023-1
WHEREAS, relieving conditions of unemployment, underemployment and encouraging
economic development of the community through the construction of housing and affordable
housing in or near the City are essential to the health, safety and welfare of the City of South Bend,
Indiana ("City" or "Issuer") and its citizens;
WHEREAS, the City is authorized by IC 36-7-11.9 and -12 (collectively, "Act") to make
direct loans to users or developers for the financing of economic development facilities or
improvements to serve economic development facilities, consisting of the construction of site work
and infrastructure improvements ("Local Public Improvements") needed to serve the
redevelopment and development of: (i) a four-story building containing at least sixty-five thousand
(65,000) square feet which will include the incorporation of the historic masonry features
preserved by the hereinafter defined Redevelopment Commission; and (ii) a minimum of sixty
(60) total apartment units of which no fewer than twenty-three (23) apartment units will be
exclusively available for tenants at fifty percent (50%) or lower of the area median income
("AMI") and no fewer than an additional twenty-three (23) apartment units will be exclusively
available for tenants at eighty percent (80%) or lower of AMI (collectively, "Development"), on
certain real estate acquired by the Borrower at an investment of approximately $13,700,000 for
construction of the Development and Local Public Improvements needed to serve the
Development and creation of approximately 8 full-time jobs, thus strengthening the economic
well-being of the Area and encouraging additional growth by contributing to the revitalization of
housing and affordable housing to the neighborhood by the Borrower, in or physically connected
to the River West Development Area and the River West Development Area Allocation Area No.
1 (collectively, "Area") to be used for the financing of the Local Public Improvements to serve the
Development;
WHEREAS, pursuant to the Act, the financing and inducement of economic development
facilities constitutes a public purpose;
WHEREAS, the Borrower has requested the City issue and fund its Taxable Economic
Development Revenue Note, Series 2023 (Monreaux Project) ("Series 2023 Note") in an amount
not to exceed Two Million Three Hundred Thousand Dollars ($2,300,000) ("Loan");
WHEREAS, the South Bend Economic Development Commission ("Commission") has
studied the Local Public Improvements for the proposed financing of the Local Public
Improvements need to serve the Development and the effects on the health and general welfare of
the City and its citizens;
WHEREAS, the completion of the Local Public Improvements to serve the Development
will result in the diversification of industry, the creation of jobs and the provision of housing and
affordable housing which also creates additional business opportunities in the City, and will be of
public benefit to the health, safety and general welfare of the City and its citizens;
WHEREAS, pursuant to and in accordance with the Act, the City desires to provide funds
necessary to finance a portion of the Local Public Improvements to serve the Development by
issuing the Series 2023 Note pursuant to the Loan Agreement;
WHEREAS, on November 20, 2023 the South Bend Redevelopment Commission adopted
a resolution ("Pledge Resolution") pledging TIF Revenues on hand, junior and subordinate to any
outstanding bonds payable from TIF Revenues and any bonds issued in the future on a parity with
any outstanding bonds (as defined in the Pledge Resolution), to fund the Loan;
WHEREAS, the diversification of industry, the investment of approximately $13,700,000,
the creation of approximately 8 full-time jobs and the promotion of additional economic
development opportunities to be achieved by the construction of the Local Public Improvements
to serve the Development will be of public benefit to the health, safety and general welfare of the
Issuer and its citizens;
WHEREAS, there has been submitted to the Commission for its approval a form of the
loan agreement and the form of the proposed ordinance of the Common Council of the City
("Common Council") with respect to the Local Public Improvements and the Series 2023 Note
("Ordinance");
WHEREAS, pursuant to Indiana Code 36-7-12-24, as amended, the Commission published
notice of a public hearing ("Public Hearing") on the proposed issuance and funding of the Series
2023 Note to finance a portion of costs of financing the Local Public Improvements to serve the
Development;
WHEREAS, on the date hereof the Commission held the Public Hearing on the Local
Public Improvements; and
WHEREAS, no member of the Commission has any pecuniary interest in any employment,
financing agreement or other contract made under the provisions of the Act and related to the
Series 2023 Note authorized herein, which pecuniary interest has not been fully disclosed to the
Commission and no such member has voted on any such matter, all in accordance with the
provisions of Indiana Code 36-7-12-16;
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND ECONOMIC
DEVELOPMENT COMMISSION, THAT:
Section 1. The Commission has conducted a public hearing and considered any and all
evidence and comments provided, and the Commission hereby finds, determines, ratifies and
confirms that the financing of the Local Public Improvements to serve the Development referred
to in the hereinafter defined Loan Agreement; and the issuance and funding of the Series 2023
Note to pay a portion of the costs of the Local Public Improvements to serve the Development: (i)
will result in the diversification of industry, the provision of housing and affordable housing which
also creates additional business opportunities within the jurisdiction of the City; (ii) will serve a
public purpose, and will be of benefit to the health and general welfare of the City; (iii) complies
with the purposes and provisions of the Act and it is in the public interest that the City take such
lawful action as determined to be necessary and desirable to encourage the diversification of
industry, the provision of housing and affordable housing which also creates additional business
opportunities, within the jurisdiction of the City; and (iv) will not have a material adverse
competitive effect on any similar facilities already constructed or operating in or near the City.
Section 2. The City shall fund the Loan to the Borrower in an amount not to exceed
Two Million Three Hundred Thousand Dollars ($2,300,000), payable as set forth in Section 2.2 of
the Loan Agreement. To the extent the representation in Section 2.2 of the Loan Agreement is
met, payment on the Loan shall be forgiven as described therein. The Series 2023 Notes shall
accrue interest at a rate not to exceed five (5.0%) percent per annum. The Series 2023 Note shall
never constitute a general obligation of, an indebtedness of, or charge against the general credit of
the City. The Series 2023 Note shall not be subject to optional redemption prior to maturity.
Section 3. The Commission hereby approves the terms of the following documents in
the form presented at this meeting: (i) a form of Loan Agreement between the City and the
Borrower with respect to the Local Public Improvements (including the form of the Series 2023
Note), dated as of December 1, 2023 ("Loan Agreement"); (ii) the form of ordinance to be
presented to the Common Council ("Ordinance") authorizing the issuance and funding of the
Series 2023 Note and providing for the terms thereof. The forms of Loan Agreement and
Ordinance presented herewith are hereby approved, with any and all such changes as may be
deemed necessary, desirable or appropriate by the Mayor, the Controller or any other officer of the
City.
Section 4. The Commission hereby approves the report with respect to the Local
Public Improvements presented at this meeting. The Secretary of the Commission shall submit
such report to the executive director or chairperson of the South Bend Plan Commission.
Section 5. The Commission hereby finds and determines that the issuance of the Series
2023 Note in an amount not to exceed Two Million Three Hundred Thousand Dollars ($2,300,000)
to the Borrower for the construction of a portion of the Local Public Improvements will each serve
the public purposes referred to above, in accordance with the Act.
Section 6. The economic development facilities will consist of the Local Public
Improvements to be located generally at 505, 507, 511 and 513 S. Michigan Street, South Bend,
Indiana, and served by the Local Public Improvements to serve the Development.
Section 7. It has considered whether the Local Public Improvements will have an
adverse competitive effect on any similar facilities already under construction or in operation in
the City, and now makes the following special findings of fact based upon the evidence presented:
(a) No member of the public or competitor presented any evidence of substantial
probative value establishing that the Local Public Improvements to serve the Development would
have any adverse competitive effect in any respect; and
(b) In the absence of any evidence of substantial probative value of any adverse
competitive effect, the benefits to the public from the new jobs and payroll to be generated by the
Local Public Improvements, demonstrate that the Local Public Improvements should be supported
by the making of the Loan.
Section 8. Any officer of the Commission is hereby authorized and directed, in the
name and on behalf of the Commission, to execute any and all other agreements, documents and
instruments, perform any and all acts, approve any and all matters, and do any and all other things
deemed by him or her necessary or desirable in order to carry out and comply with the intent,
conditions and purpose of this resolution (including the preambles hereto and the documents
mentioned herein), the Local Public Improvements, the Development, the issuance and funding of
the Series 2023 Note, and any such execution, performance, approval or doing of other things
heretofore effected be, and hereby is, ratified and approved.
Section 9. The Secretary of the Commission shall transmit a copy of this resolution,
together with two (2) copies of the forms of Loan Agreement and Ordinance approved by this
resolution, to the Clerk for presentation to the Common Council with the recommendation that the
Common Council adopt the proposed form of Ordinance approving the issuance and funding of
the Series 2023 Note and the Loan Agreement in their substantially final forms as hereby
recommended.
Section 10. The Secretary shall initial and then insert a copy of the forms of documents
approved by this Resolution in the minute book of this Commission.
Adopted this 11th day of December, 2023.
SOUTH BEND ECONOMIC DEVELOPMENT
COMMISSION
By:
President
Attest:
Secretary