HomeMy WebLinkAboutRedeem the 1992 SB Redev Authority Taxable Lease/Rental Revenue Bonds (Palais Royale)ORDINANCE No.
9385-02
Passed by the Contnton Council of the Ciry of South Bend, Indiana
December 9,
Attest:
Attest: ~` ~l~-~%
20 02
Presented by me to the Mayor of the City of Soutlt Bend, Indiana
December 11
20 02
City Clerk
President cf Common Council
City Clerk
December 12, ~2
Approved and signed by me 20
~°~ ,~ ~-
Mayor
ORDINANCE NO. ` ~ ~ ~ ~ ~--
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, TO REDEEM THE 1992 SOUTH BEND REDEVELOPMENT AUTHORITY
TAXABLE LEASE/RENTAL, REVENUE BONDS (PALAIS ROYALE); TO
APPROPRIATE $34,314.63 FROM FUND #328 FOR BOND REDEMPTION PURPOSES;
TO TRANSFER $260,686.37 FROM FUND #328 TO FUND #420 (SOUTH BEND
CENTRAL DEVELOPMENT AREA T.I.F.); AND TO CLOSE FUND #328 DUE TO
FULFILLMENT OF THE FUND'S PURPOSE
STATEMENT OF PURPOSE AND INTENT
In 1992 the City of South Bend through the South Bend Redevelopment Authority issued
Taxable Lease/Rental Revenue Bonds in the total aggregate sum of $1,410,000 in order to acquire
the Palais Royale building from private owners. Said Bonds were to be retired February 1, 2004,
and the City wishes to redeem them on December 27, 2002. As of December 27, 2002 the total
principal balance due the bondholders is $345,000 plus $10,180.46 in accrued interest, for a total due
of $355,180.46. Early payment and retirement of the 1992 Palais Royale Bonds will result in
savings of future interest payment
Fund #328 known as "Redevelopment Bond/Palais Royale" Fund was established as the debt
service reserve fund for the Palais Royale Bonds and said Fund has a present balance of $295,000.
The City has learned from the Bond Trustee Wells Fargo Bank that the sum of $320,865.83 is also
on deposit with Wells Fargo in a sinking fund, and in an operation and reserve fund specifically
designated for these bonds. Accordingly, after crediting the City with funds on deposit at Wells
Fargo, it will be necessary to appropriate $34,314.63 from Fund #328 for bond redemption purposes.
The balance in that Fund of $260,686.37 will then be transferred to Fund #420 -South Bend Central
Development Area Tax Incremental Fund.
Because Fund #328 was specifically established as a debt reserve fund for the Palais Royale
Bonds, and because that purpose has been fully satisfied, this Ordinance will also close Fund #328.
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South
Bend as follows:
Section I. The sum of $34,314.63 be and hereby is appropriated within Fund Number
#328(Redevelopment Bond/Palais Royale) in order to redeem on December 27, 2002 the 1992
South Bend Redevelopment Authority Taxable Lease/Rental Revenue Bonds (Palais Royale),
hereafter referred to as the ("Palais Royale Bonds").
Section II. The sum remaining in Fund #328 after the appropriation in Section I of
$260,686.37 shall be transferred to Fund #420 South Bend Central Development Area Tax
Incremental Fund.
Section III. Upon appropriation and payment of $34,314.63 to the bond holders from Fund
#328 and transfer of the remaining balance in Fund #328 to Fund #420 (the sum of $260,686.37),
Fund #328 shall be closed, its purpose having been fully effectuated.
Section IV. The City of South Bend Controller is authorized to do any and all things
necessary to effectuate redemption of said Palais Royale Bonds on or before December 27, 2002.
Section V. This Ordinance shall be in full force and effect from and after its passage by the
Common Council and approval by the Mayor.
Member, South Bend Comm Council
1 st READING (~- 2 ~-~ Z
PUBLIC HEARING ~ Z.'~1~ Q'2,
3 rd READING ~L ~ _ Q ~„
NOT APPROVED
REFERRED
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COMMITTEE REPORT
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
100-02 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, TO REDEEM THE 1992 SOUTH BEND
REDEVELOPMENT AUTHORITY TAXABLE LEASE/RENTAL,
REVENUE BONDS (PALAIS ROYALE); TO APPROPRIATE
$34,314.63 FROM FUND #328 FOR BOND REDEMPTION
PURPOSES; TO TRANSFER $260,686.37 FROM FUND #328 TO
FUND #420 (SOUTH BEND CENTRAL DEVELOPMENT AREA
T.I.F.); AND TO CLOSE FUND #328 DUE TO FULFILLMENT OF
THE FUND'S PURPOSE
Respectfully report that they have examined the matter and that in their opinion, this bill is
being recommended to the full Council with a favorable recommendation.
Karl King
Chairman
C.OUIJIY-CtCY BUILDING
SOUTH BEND, INDIANA 46601-1830
PHONE 574/ 235-921 G
Fnx 574/235-9928
TDD 574! 235-5567
CITY OF SOUTH BEND ST'EPHEN,J. LUECKE, MAYOR
DEPARTMENT OF ADMINISTRATION AND FINANCE
November 20, 2002
Mr. Roland Kelly
President
South Bend Common Council
41h Floor -County-City Building
South Bend, IN 46601
FREDERICK B. OLLET"I', III
C,ANTROLLER
Subject: Redemption of 1992 South Bend Redevelopment Authority Taxable/Rental,
Revenue Bonds (Palais Royale)
Dear Mr. Kelly:
In 1992 the City of South Bend through the South Bend Redevelopment Authority issued these
bonds ($1,400,000) to acquire the Palais Royale building from private owners.
We wish to retire these bonds as of December 27, 2002 rather than continuing to pay interest at
7.3% per year while earning 1.21% on the funds in the debt reserve fund.
In addition to the $320,865.83, $34,314.63 from Fund #328 (Redevelopment Bond/Palais
Royale) is requested for appropriation to redeem the bonds and the outstanding interest through
December 27, 2002. The remaining balance in Fund #328 will be transferred to Fund #420
(South Bend Central Redevelopment Area Tax Incremental Fund). Fund #328 will be closed
since its stated purpose of Palais Royale repayment will have been fulfilled.
We request your approval of this ordinance.
Sincerely,
~~o~j
n~
Frederick B. Ollett, III
Controller
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CATHERINEA. HUBBARD-SHEAR LIZ ROWS THOMAS SKARBEK SUSAN WALLACE ROBERT ALLEN
DIRECTOR DIRECTOR DIRECTOR MANAGER DIRECTOR
HUMAN RESOURCES CITY FINANCE BUDGETING & FINANCIAL REPORTING BENEFITS INFORMATION TECHNOLOGY