HomeMy WebLinkAboutResolution No. 3593 (Career Academy Mortgage and Note Subordination 3408 Ardmore)RESOLUTION NO. 3593
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
APPROVING SUBORDINATION OF LOAN, ACCEPTING GUARANTY, AND
AUTHORIZING EXECUTION OF AGREEMENTS
WHEREAS, the South Bend Redevelopment Commission (the "Commission"), governing
body of the South Bend Department of Redevelopment ("Redevelopment"), exists and operates
pursuant to I.C. 36-7-14; and
WHEREAS, the Commission closed on a sale of certain real estate located at 3408
Ardmore Trail, South Bend, Indiana (the "Property"), to the Career Academy of South Bend, Inc.,
an Indiana nonprofit corporation ("Career Academy") on February 18, 2015; and
WHEREAS, as a part of the transaction, the Career Academy executed a mortgage and
promissory note in favor of the Commission, in which the Career Academy would make annual
payments in increasing amounts on the purchase price commencing on or about February 18, 2018,
through February 18, 2031; and
WHEREAS, the Career Academy has been paying the amounts due and owing in a timely
manner; and
WHEREAS, the Career Academy is entering into a financial transaction to issue bonds in
furtherance of its mission and has requested a subordination of the City's mortgage on the Property
and the promissory note in favor of the bond purchaser; and
WHEREAS, the projects to be financed by the bonds will benefit the residents of the City
of South Bend (the "City"); and
WHEREAS, concurrent with the subordination, the Commission will obtain a guaranty
from The Garatoni-Smith Family Foundation for the payment of amounts due and owing under
the note; and
WHEREAS, the Commission desires to support the projects by approving the
subordination transaction, accepting the guaranty, and authorizing the City's Executive Director
of Community Investment to execute the relevant documents once approved by City's Corporation
Counsel.
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT
COMMISSION AS FOLLOWS:
1. The Commission hereby ratifies and approves subordination of its Real Estate
Mortgage and Security Agreement and its Promissory Note to a senior lender pursuant to the
Career Academy's issuance of Educational Facilities Revenue Bonds, Series 2024A and
Educational Facilities Revenue Bonds, Series 2024B.
2. The Commission authorizes the City's Corporation Counsel to negotiate the terms
of the subordination agreement and guaranty on its behalf.
3. The Executive Director of the City's Department of Community Investment is
hereby authorized and instructed to execute the final subordination agreement, as well as any
necessary ancillary documents, and to accept the guaranty on behalf of the Commission.
4. This Resolution will be in full force and effect upon its adoption by the
Commission.
Signature Page Follows
ADOPTED at a meeting of the South Bend Redevelopment Commission held on
February 22, 2024.
SOUTH BEND REDEVELOPMENT
COMMISSION
Marcia I Jones, Presiden
ATTEST:
Vivian G Sallie, Secretary