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HomeMy WebLinkAbout6B4� a (v) �SOOTH BE 11,111 Department of 9 Community Investment Fir.vr', 1865 Memorandum Friday, March 22, 2013 TO: Redevelopment Commission FROM: Don Inks SUBJECT: Century Center Refunding Bonds of 2013 Interest rates have fallen since the bonds were issued in 2008. It is estimated that refinancing now would save $346,000 over the remainder of the bond term, net of new issuance costs. The net present value of these savings is estimated to be $284,000. The bond maturity will stay at the original date of May 2028. It is estimated bond payments will decline by about $25,000 per year. These bonds are being paid by Hotel /Motel tax revenues. Faegre Baker Daniels is our Bond Counsel and will be available at the Redevelopment Commission meeting on 3/28 to provide additional details on bond documentation and answer any questions you may have. 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574 - 235 -9371 1 FAX: 574 - 235 -9021 1 SOUTHBENDIN.GOV RESOLUTION NO. 3133 RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION CONTINUING CERTAIN FUNDS AND ACCOUNTS IN CONNECTION WITH THE LEASE DATED AS OF NOVEMBER 1, 1993, AS AMENDED, BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY FOR THE CENTURY CENTER 2008 PROJECT AND REGARDING RELATED MATTERS WHEREAS, the South Bend Redevelopment Authority (the "Authority ") has been created pursuant to IC 36 -7 -14.5 as a separate body, corporate and politic, and as an instrumentality of the City of South Bend, Indiana, to finance local public improvements for lease to the South Bend Redevelopment Commission (the "Commission "); and WHEREAS, the Authority intends to issue its lease rental revenue refunding bonds in an aggregate principal amount expected not to exceed Five Million One Hundred Thousand and 00 /100 Dollars ($5,100,000.00) pursuant to IC 36 -7- 14.5 -19 and IC 5 -1 -5 (collectively, the "Act') to be known as the "South Bend Redevelopment Authority Lease Rental Revenue Refunding Bonds, Series 2013 (Century Center Project)" (the "Bonds "), the proceeds of which will be used to advance refund the South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2008 (Century Center Project) (the "2008 Bonds "), and to pay the costs of issuance of the Bonds; and WHEREAS, the Authority previously entered into a lease between the Authority and the Commission dated as of November 1, 1993, which lease was amended by the Addendum to Lease dated as of June 3, 1994, and further amended by the Second Addendum to Lease dated as of June 1, 2008, and which Second Addendum to Lease was amended by an Addendum to DMS_US 51727276v1 Lease dated as of November 12, 2008 (collectively, the "Lease "), which Lease was heretofore approved by this Commission, and pursuant to which the Authority leases to the Commission certain local public improvements, including the Century Center and related improvements; and WHEREAS, the St. Joseph County Hotel -Motel Tax Board of Managers (the "Board of Mangers ") adopted a resolution on June 4, 2008, pledging a portion of the Hotel- Motel Tax Revenues (the "Hotel Motel Tax Revenues ") distributed to the Board of Managers annually by the County Treasurer pursuant to Indiana Code 6 -9 -1 -6 to the payment of the rentals due under the Lease; and WHEREAS, the Board of Managers will continue to make distributions of the Hotel -Motel Tax Revenues to be used to pay the rentals due under the Lease; and WHEREAS, the Commission desires to confirm certain funds and accounts for the payments of the rentals owed by the Commission pursuant to the Lease; and WHEREAS, the Commission, by Resolution No. 2525 adopted at a meeting on November 7, 2008, established certain funds and accounts for the payment of the rentals owed by the Commission pursuant to the Lease (the "Pledge Resolution "); and WHEREAS, the Commission anticipates it will be necessary to enter into an addendum to the Lease following the sale of the Bonds to reflect changed rental payments due under the Lease and to make certain other changes to the Lease; and NOW, THEREFORE, BE IT RESOLVED, by this South Bend Redevelopment Commission as follows: Section 1. The -Commission hereby authorizes, approves and ratifies the issuance, sale and delivery of the Bonds by the Authority in a maximum aggregate principal amount not to exceed Five Million One Hundred Thousand and 00 /100 Dollars ($5,100,000.00) DMS US 51727276vl - 2 - at a maximum interest rate not to exceed five percent (5.0 %). The issuance of the Bonds will provide a savings to the Authority and the Commission. Section 2. The Commission hereby covenants and agrees to keep and maintain those funds and accounts created by the Pledge Resolution, such funds and accounts consisting of a Century Center 2008 Lease Principal and Interest Account (the "Lease Account "), and such other accounts as the Commission may from time to time establish to pay the rentals owed by the Commission pursuant to the Lease as the same may be amended. The Commission will deposit into the Lease Account the Hotel -Motel Tax Revenues received by the Commission from the Board of Managers. The Hotel -Motel Tax Revenues deposited into the Lease Account shall be used solely by the Commission solely for the payment of the rentals due under the Lease. Section 3. Following the sale of the Bonds, the President or Vice - President and Secretary of the Commission are hereby authorized to execute and attest, respectively, an addendum to the Lease to reflect the reduced rental payments due under the Lease and make any other changes necessary to reflect the issuance of the Bonds upon the advice of counsel to the Commission. Section 4. This Resolution shall be in full force and effect after its adoption by the Commission. DMS US 51727276v1 - 3 - ADOPTED at a meeting of the South Bend Redevelopment Commission held on March 28, 2013, in Room 1308, County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana, 46601. SOUTH BEND REDEVELOPMENT COMMISSION Marcia I. Jones, President ATTEST: Donald Alford, Sr., Secretary DMS US 517272760 - 4 -