HomeMy WebLinkAboutResolution No. 3633 (TIR Bonds Drewrys Site) - SignedSouth Bend Redevelopment Commission
227 West Jefferson Boulevard, Room 1308, South Bend, Indiana
Redevelopment Commission Agenda Item
D ATE : 4/7/2025
FROM: Joe Molnar, Assistant Director of Growth &
Opportunity
SUBJECT: Resolution No. 3633: Tax Increment Revenue
Bonds Supporting Residential Infrastructure
Improvements at the Drewrys Site
Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res.
* Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the
authorization of the expenditure of such funds shall be void and of no effect.
PURPOSE OF REQUEST: Preliminary determination by the Commission to issue bonds for the purpose of
financing infrastructure improvements for the planned Drewrys Site Revitalization residential housing
development
SPECIFICS: In December 2024, the City of South Bend applied for a Residential Infrastructure Fund (RIF) loan in
the amount of $2.57 million through the Indiana Finance Authority (IFA). On January 22, 2025, the City was
informed by IFA that the loan application was approved. Through the RIF program, the funds provided by the IFA
would be made available to the City through IFA’s purchase of Redevelopment District Bonds issued by the
Commission.
The RIF loan provided by the IFA can be used for the continued environmental remediation, installation of public
utilities, and related public infrastructure improvements to support the planned Drewrys Site Revitalization
residential housing development. The RIF loan funds can also be used for legal counsel and municipal advisory
services related to the issuance of the bonds.
If Resolution No. 3633 was to be adopted, then the Commission would take the first action necessary to access
the approved RIF loan funds. Specifically, with the resolution’s adoption, the Commission would:
•Make a preliminary determination to issue bonds for the purpose of financing all or a portion of the
costs associated with the Drewrys Site Revitalization residential housing development; the maximum
principal amount would be $2.57 million with an annual interest rate not to exceed 5.5%; the bonds
would mature not later than 20 years from the date of issuance;
•Authorize bond payments to be made using tax increment and other legally available revenues from the
River West Development Area;
•Authorize the publication of a notice of public hearing on the appropriation of the proceeds of the
bonds and a notice of decision to issue the bonds, both pursuant to Indiana Code; and
•Authorize all actions necessary to carry out the transactions associated with the issuance of the bonds.
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
April 10, 2025
South Bend Redevelopment Commission
227 West Jefferson Boulevard, Room 1308, South Bend, Indiana
If Resolution No. 3633 is adopted, then staff would plan to present for the Commission’s consideration on April
24 the bond resolution and the appropriation resolution. The Commission would hold a public hearing at that
time as well. City staff would then plan to present to the Common Council at its May 12 meeting a resolution
that would approve the issuance of TIF Revenue Bonds.
RESOLUTION NO. 3633
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
PRELIMINARILY DETERMINING TO ISSUE TAX INCREMENT REVENUE BONDS
OF THE REDEVELOPMENT DISTRICT OF THE CITY OF SOUTH BEND, INDIANA
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 Commission has previously designated and declared an area in the City
of South Bend, Indiana (the “City”) known as the River West Development Area as an economic
development area and as an allocation area pursuant to Section 39 of the Act (the “Area”); and;
WHEREAS, the Commission desires to finance the cost of certain local public
improvements in or serving the Area that support the redevelopment of the Drewrys Site located
at 1408 Elwood Avenue in the City (the “Project Site”) into a new residential housing
development, including without limitation (i) continued environmental remediation of the Project
Site, (ii) the construction of new streets, curbs, sidewalks and tree lawns, (iii) the construction of
a storm sewer system, (iv) the installation of sanitary sewer lines, (v) the installation of water main
lines and a lateral connection system and (vi) the installation of street lighting, (items (i) through
and including (vi), collectively, the “Project”); and
WHEREAS, the Commission reasonably expects to fund the costs of the Project with
proceeds of bonds issued by or on behalf of the Commission (the “Bonds”), in the maximum
principal amount of Two Million Five Hundred Seventy Thousand Dollars ($2,570,000); and
WHEREAS, the Bonds will be payable from a pledge of tax increment revenues collected
in the Area (the “Tax Increment”) and any legally available revenues of the Commission; and
WHEREAS, the Commission may enter into one or more Financial Assistance
Agreements, Funding Agreements, Grant Agreements, and/or Financial Aid Agreements, together
with any subsequent amendments thereto, with the Indiana Finance Authority as part of its
residential infrastructure fund program and/or residential housing infrastructure assistance
program, established and existing pursuant to Ind. Code 5-1.2-15.5 (the “IFA Program”),
pertaining to the Project and the financing of the Project if the Bonds are sold to the IFA Program;
NOW, THEREFORE, BE IT RESOLVED BY THIS SOUTH BEND
REDEVELOPMENT COMMISSION AS FOLLOWS:
1.The Commission hereby makes a preliminary determination to issue the Bonds in
one or more series for the purpose of financing all or a portion of the costs of the Project and
paying related costs. The Bonds shall be in the maximum principal amount of Two Million Five
Hundred Seventy Thousand Dollars ($2,570,000), with a final maturity not later than twenty (20)
years from the date of issuance, and shall bear a per annum interest rate not to exceed five and
2
one-half percent (5.5%). The Bonds shall be payable solely from the Tax Increment and any legally
available revenues of the Commission.
2.The Commission hereby finds that the Project does not constitute a “controlled
project” pursuant to Indiana Code 6-1.1-20.
3.The Commission hereby authorizes the publication of a notice of public hearing on
the appropriation of the proceeds of the Bonds pursuant to Indiana Code 5-3-1 and a notice of
decision to issue the Bonds pursuant to 6-1.1-20-5.
4.The President, Vice President, Secretary or any other officer or member of
the Commission is authorized to take all such actions and to execute all such instruments as are
desirable to carry out the transactions contemplated by this Resolution, in such forms as such
officer or member executing the same shall deem proper, to be conclusively evidenced by the
execution thereof.
5.This Resolution shall be in full force and effect immediately from and after its
passage.
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ADOPTED at a meeting of the South Bend Redevelopment Commission held on April 10,
2025 in Room 1308, County-City Building, 227 West Jefferson Boulevard, South Bend, Indiana,
46601.
SOUTH BEND REDEVELOPMENT
COMMISSION
By:
Troy Warner, President
ATTEST:
Eli Wax, Secretary
DMS 46752209v1