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HomeMy WebLinkAbout5073-24 Resolution Approving a Lease Between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission Relating to the Four Winds Field at Coveleski Stadium RESOLUTION No. 5073-24 Passed by the Common Council of the City of South Bend, Indiana April 8, 24 20 SMAttest: City Clerk Bianca L. Tirado Attest: J CLU �� �� C � 1. President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana 20 24 clAi4S1-49 City Clerk Bianca L. Tirado Approved and signed by me /• I IL 20 T Mayor BILL NO. 24-10 RESOLUTION NO. 5073-24 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING A LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT AUTHORITY AND THE SOUTH BEND REDEVELOPMENT COMMISSION RELATING TO THE FOUR WINDS FIELD AT COVELESKI STADIUM PROJECT AND TAKING OTHER ACTIONS RELATED THERETO WHEREAS, the South Bend Redevelopment Commission (the "Commission"), the governing body of the South Bend Department of Redevelopment and the Redevelopment District of the City of South Bend, Indiana (the "District"), exists and operates under the provisions of Indiana Code 36-7-14, as amended from time to time (the"Act"); and WHEREAS,the South Bend Redevelopment Authority(the"Authority")has been created pursuant to Indiana Code 36-7-14.5 as a separate body corporate and politic, and as an instrumentality of the City of South Bend, Indiana (the "City") to finance local public improvements for lease to the Commission; and WHEREAS,the City has determined to undertake certain improvements to the Four Winds Field at Coveleski Stadium(the"Stadium") consisting of enhancements to the Stadium including, without limitation, modernizing the existing stadium infrastructure, adding a full second level above the existing facility, renovating the primary seating areas and suites, adding a new 20,000 square foot, four-story club and event space building, and a new playground and splash pad with additional improvements including,without limitation,additional restrooms,additional circulation space, updated retail and concessions areas, a new improved entrance, and all projects related to the foregoing projects (collectively, the "Project") for the purpose of increasing the Stadium's capacity and providing for increased future success; and WHEREAS, the Commission has given consideration to (i) financing the cost of all or a portion of the Project; (ii) funding a debt service reserve fund, if necessary in connection with the issuance of the Bonds (defined herein); and (iii) paying costs incurred in connection with the issuance of the Bonds; and WHEREAS,the Commission has determined that it would be beneficial to the District and the City for the Commission to enter into a lease with the Authority pursuant to Section 25.2 of the Act and have the Authority issue its lease rental revenue bonds for a local public improvement pursuant to Indiana Code 36-7-14.5-19; and WHEREAS,the Project is located within the boundaries of the District and will benefit the residents of the City by providing future opportunities for new redevelopment and economic development and job creation; and WHEREAS,at a meeting held on March 28,2024,following a public hearing held pursuant to Section 25.2 of the Act, the Commission did adopt its Resolution No. 3596 (a) finding (i) that the lease rental payments (the "Lease Rentals") to be paid by the Commission to the Authority pursuant to a lease between the Commission and the Authority (the "Lease") are fair and reasonable, (ii) that the terms of the Lease are based upon the value of the leased premises which includes the real estate on which the Project will be located (the"Leased Premises"), and (iii) the use of the Leased Premises throughout the term of the Lease will serve the public purpose of the City and is in the best interests of its residents and (b) approving the Lease in the form presented at the Commission meeting for the purpose of paying the principal of and interest on the South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2024 (Four Winds Field at Coveleski Stadium Project) (the "Bonds") proposed to be issued by the Authority pursuant to Indiana Code 36-7-14.5 to finance the Project; and WHEREAS, at a meeting held on March 27, 2024, the Authority did adopt Resolution No. 216 whereby the Authority (a) indicated its intent to issue the Bonds in one (1) or more series in an aggregate principal amount not to exceed Fifty Million Two Hundred Fifty Thousand Dollars ($50,250,000), to finance all or a portion of(i) the costs of the Project; (ii) a debt service reserve fund, if necessary, in connection with the issuance of the Bonds; and (iii) costs incurred in connection with the issuance of the Bonds; and (b) approved the proposed form of Lease between the Authority and the Commission for the lease of the Leased Premises; and WHEREAS,the Commission reasonably expects to pay the Lease Rentals during the term of the Lease from certain Professional Sports and Convention Development Area tax revenues to be received by the City (the "PSCDA Revenues") pursuant to Indiana Code 36-7-31.3 (the "PSCDA Act"); however, to assist with the marketing of the Bonds and securing competitive interest rates,the payment of the Lease Rentals also will be secured by the levy of a special benefits tax pursuant to Section 27 of the Act in the event the PSCDA Revenues are ever insufficient; and WHEREAS, the Common Council of the.City (the "Common Council") deems it in the best interest of the City and its citizens and of public utility and benefit for the Commission to utilize the PSCDA Revenues to pay the lease rentals due under the Lease which lease rentals would be used to pay the principal of and interest on the Bonds; and WHEREAS,the annual rentals payable by the Commission under the Lease will be pledged by the Authority to pay the principal of and interest on the Bonds; and WHEREAS,given the use of the lease financing provisions to reduce the cost of borrowing and certain additional requirements set forth in the Act and Indiana Code 36-7-14.5 with respect to the approval by the Common Council of a financing for redevelopment or economic development purposes, the Common Council desires to (i) approve the Lease as required by Section 25.2 of the Act,which provides that any lease approved by a resolution of the Commission must be approved by the fiscal body of the City, (ii) approve the issuance of the Bonds by the Authority as required by Indiana Code 36-7-14.5-19, and (iii) approve and authorize the transfer of the interests in the Leased Premises to the Authority to permit the Authority to lease the Leased Premises to the Commission pursuant to the Lease. NOW,THEREFORE,BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION 1. The Common Council hereby approves of the issuance of the Bonds by the Authority pursuant to Indiana Code 36-7-14.5-19 and the execution and delivery of the Lease, as approved by the Commission, pursuant to Section 25.2 of the Act, in order to provide for the financing of the Project, all upon the following conditions: (a) the maximum aggregate principal amount of the Bonds shall not exceed $50,250,000; (b) the Bonds shall have a final maturity date which is not later than twenty (20) years from the date of their issuance; (c) the maximum annual lease rental payment during the term of the Lease shall not exceed $4,476,000; (d) the maximum interest rate on the Bonds shall not exceed six percent (6.00%) per annum; (e) the Bonds will be subject to optional redemption prior to maturity not earlier than seven (7) years after the date of issuance of the Bonds; (f) the maximum term of the Lease shall not exceed twenty(20)years; and (g)no interest on the Bonds shall be capitalized or paid from the proceeds of the Bonds. SECTION 2. The Common Council hereby finds and determines that the transfer of the Leased Premises from the City to the Authority for no consideration, in connection with the financing of the Project by the Authority and lease of the Leased Premises to the Commission pursuant to the Act, is in the best interests of the City and its citizens. The Common Council approves of the transfer of all of the City's interest to the Leased Premises to the Authority. The appropriate officers of the Board of Park Commissioners and the Mayor, Clerk, and Controller of the City are each hereby authorized to execute or attest, as the case may be, such instruments or documents and to take such other actions that may be necessary to effectuate the transfer of the Leased Premises to the Authority as authorized herein. SECTION 3. The Common Council hereby finds and determines that it is reasonable and appropriate for the Commission to utilize the PSCDA Revenues pursuant to the PSCDA Act to pay the lease rentals due under the Lease and as such, the Council agrees that it will take, or authorize the taking of, such actions as may be necessary from time to time to provide for the use of the PSCDA Revenues by the Commission to pay the lease rentals due under the Lease. Any PSCDA Revenues remaining following the payment of the lease rentals due under the Lease each year during the term of the Lease may be used for any purpose authorized under the PSCDA Act as may be approved by the Common Council from time to time. 2 SECTION 4. This Resolution shall be in full force and effect from and after its adoption by the Common Council. ila,i01,c NI e., td:c_ Sharon .. McBride, Presid t South Bend Common Council 3