HomeMy WebLinkAbout5133-25 Resolution Approving the Issuance of Tax Increment Revenue Bonds for Improvements that Support Residential Housing Developments and All Matters Related Thereto RESOLUTION No . 5133-25
Passed by the Common Council of the City of South Bend, Indiana
May 12, 20 25
Attest: 6ii , City Clerk
Bianca L. Tirado
Attest: — j
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
May 13, 20 25
City Clerk
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Bianca L. Tirado
Approved and signed by me tili 16 20 25
/7 ilit Mayor
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BILL NO. 25-28
RESOLUTION NO. 5133-25
A RESO UTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA,APPROVING THE ISSUANCE OF TAX INCREMENT REVENUE BONDS
OF THE REDEVELOPMENT DISTRICT OF THE CITY FOR THE PURPOSE OF
PROVIDING FUNDS FOR THE COSTS OF CERTAIN LOCAL PUBLIC
IMPROVEMENTS THAT SUPPORT RESIDENTIAL HOUSING DEVELOPMENT
AND ALL MATTERS 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, with the approval of the Common Council (the "Common Council") of the
City of South Bend, Indiana(the"City"), the Commission has previously designated and declared
an area in the City known as the River West Development Area as an economic development area
(the"Area") and designated portions of the Area from time to time as allocation areas pursuant to
Section 39 f the Act (each such allocation area within the Area, excluding the Riverwalk
Allocation ea designated by Resolution No. 3627 adopted by the Commission on January 9,
2025, an "A location Area" and collectively, the"Allocation Areas"); and
WH REAS, the Commission has previously created an allocation fund for each of the
Allocation Areas (each an "Allocation Fund and collectively, the "Allocation Funds"), and has
provided that tax increment revenues derived from each respective Allocation Area(collectively,
the"Tax Increment') shall be deposited into the respective Allocation Fund; and
WH REAS, the Commission has adopted Resolution No. 3637 at a meeting held on April
24, 2025, ( e "Bond Resolution"), determining to issue tax increment revenue bonds of the
District (the "Bonds") for the purpose of financing the cost of certain local public improvements
in or serving the Allocation Areas that support the redevelopment of the Drewrys Site located at
1408 Elwoo' Avenue in the City (the"Project Site") into a new residential housing development,
including w thout 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 conn ction system and(vi)the installation of street lighting,(items(i)through and including
(vi), collect vely, the "Project") and to pay related and incidental expenses to be incurred in
connection t erewith and on account of the issuance of the Bonds; and
WHEREAS, pursuant to the Bond Resolution, the Commission has determined that the
principal of nd interest on the Bonds shall be paid solely out of Tax Increment pledged therefor,
on parity with the 2020 Obligation (as defined in the Bond Resolution) and senior to the payment
of the Junio Obligations (as defined in the Bond Resolution), and any legally available revenues
of the Com ission; and
WH REAS, the Commission may enter into a Residential Housing Infrastructure
Financial A sistance Agreement with the Indiana Finance Authority (the "IFA Program") as part
of its reside tial housing infrastructure assistance program, established and existing pursuant to
Indiana Cod 5-1.2-15.5,which would then permit the Commission to sell the Bonds to the Indiana
Finance Aut ority under the IFA Program; and
WHEREAS, Section 25.1 of the Act requires the approval of the legislative body of the
City before the Bonds may be issued and the Common Council as the legislative body of the City
now desires to approve the issuance of the Bonds; and
NOW,THEREFORE,BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION 1. All of the stated"WHEREAS"clauses are incorporated herein by reference.
SECTION 2. The Common Council hereby approves the issuance of the Bonds to apply
to the costs of the Project,the funding of a debt service reserve to secure the payment of the Bonds,
if necessary, and the incidental expenses in connection therewith and the issuance of the Bonds,
upon the following conditions: (a) the maximum aggregate principal amount of the Bonds shall
not exceed $2,570,000; (b)the final maturity of the Bonds shall not be later than twenty(20)years
from the date of issuance; (c) the maximum interest rate on the Bonds shall not exceed five and
one-half percent (5.5%) per annum; (d) the Bonds may be made redeemable at the option of the
Commission, in whole or in part, in any order of maturities selected by the Commission and by lot
within a maturity, on dates and with premiums, if any, and other terms as determined by the
Commission with the advice of the Commission's municipal advisor, and (e) payment of interest
on the Bonds will not be capitalized. The Bonds are, as to both principal thereof and interest
thereon,obligations of the District,as a special taxing district,payable solely out of Tax Increment
pledged therefor, on parity with the 2020 Obligation and senior to the payment of the Junior
Obligations, and any legally available revenues of the Commission as described in the Bond
Resolution.
SECTION 3. The proper officers of the City are hereby authorized and directed, for and
on behalf of the City, to execute and deliver any contract, agreement, certificate, instrument or
other document and to take any action as such person determines to be necessary or appropriate to
accomplish the purposes of this Resolution, such determination to be conclusively evidenced by
such person's execution of such contract, agreement, certificate, instrument or other document or
such person's taking of such action.
SECTION 4. This Resolution shall be in full force and effect from and after its adoption
by the Common Council and upon compliance with the procedures required by law.
[SIGNATURE PAGE FOLLOWS
PASSED, by the Common Council of the City of South Bend, Indiana, this 12t1i day of
May, 2025.
U'
Canneth J. Lee, Council President
South Bend Common Council
Attest:
d.ieptil")
Bianca L. Tirado, CClerk
Office of the City Clerk
Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the
City of South Bend, Indiana on the 13th day of May , 2025, at 12 o'clock p.m.
Bianca . Tirado, City Cle
Office of the City Clerk
ti
Approved and signed by me on the I. day of J17 , 2025, at 2 o'clock
Jame ueller, Mayor
City of South Bend, Indiana
DMS 47136099v2