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HomeMy WebLinkAboutResolution No. 2026-01 Authorizing Actions Revenue Bonds - SignedRESOLUTION NO. 2026-1 RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION APPROVING AND AUTHORIZING CERTAIN ACTIONS AND PROCEEDINGS WITH RESPECT TO CERTAIN PROPOSED TAXABLE ECONOMIC DEVELOPMENT REVENUE BONDS AND RELATED MATTERS WHEREAS, the City of South Bend, Indiana (the “City”), is authorized by I.C. 36-7-11.9 and I.C. 36-7-12 (collectively, the “Act”) to issue revenue bonds for the financing of economic development facilities, and to provide the proceeds of the revenue bond issue to another entity to finance the acquisition, construction, renovation, installation and equipping of said facilities; and WHEREAS, the City, the South Bend Redevelopment Commission (the “Redevelopment Commission”) and Colfax Corner ML, LLC (the “Developer”), have entered into an Economic Development Agreement, dated as of December 18, 2025 (the “Development Agreement”); and WHEREAS, the Developer desires to finance a portion of the costs of certain economic development facilities consisting of the acquisition, development, construction, equipping, renovation, and/or reconstruction of space in the former South Bend Tribune building, along with new construction of an adjacent building along Main and Colfax in the City to include approximately 202,000 rentable square feet of flexible workspace and ground-floor retail, as more fully described in the Development Agreement (the “Project”), which Project shall be located in the Lafayette North Allocation Area designated by the Redevelopment Commission (the “Allocation Area”), and in the South Bend Downtown IDD (the “South Bend IDD”), an innovation development district to be designated by the Indiana Economic Development Corporation within the City pursuant to I.C. 36-7-32.5; and WHEREAS, the Developer has consulted with the City, the South Bend Economic Development Commission (the “Economic Development Commission”) and the Redevelopment Commission concerning the Project, and has requested that the City authorize and issue its taxable economic development revenue bonds in an amount not to exceed Thirty Million Eight Hundred Thousand Dollars ($30,800,000) (the “Bonds”) under the Act for the purpose of procuring funds to (a) pay all or a portion of the cost the Project, (b) pay capitalized interest on the Bonds, if necessary, for a period of not to exceed one (1) year following project completion, (c) fund a debt service reserve fund (if necessary) or the costs of a reserve surety (if necessary), and (d) pay all costs relating to the issuance of the Bonds; and WHEREAS, the Bonds will be payable from tax increment revenues derived from the Allocation Area and from certain incremental revenues generated in the South Bend IDD attributable to the Project, and as otherwise provided in the trust indenture and the Ordinance related to the Bonds; and WHEREAS, the Commission has studied the Project and the proposed financing of the Project and its effect on the health and general welfare of the City and its citizens; and WHEREAS, the completion of the Project is expected to result in the further diversification of industry and the creation of approximately 400 new permanent full-time jobs and approximately 2 340 temporary construction jobs and the expansion of further business opportunities in the City; and WHEREAS, pursuant to I.C. § 36-7-12-24, the Commission published notice of a public hearing (the “Public Hearing”) on the proposed issuance of the Bonds to finance the Project; and WHEREAS, on the date hereof the Commission held the Public Hearing on the Project and considered any adverse competitive effect or impact the Project may have on any similar facility or facility of the same kind already constructed or operating in the corporate boundaries of the City; NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION, AS FOLLOWS: SECTION 1. The Commission hereby finds, determines, ratifies and confirms that the diversification of business, the creation of business opportunities and the creation of opportunities for gainful employment within the jurisdiction of the City are desirable, serve a public purpose, and are of benefit to the health and general welfare of the City; and that it is in the public interest that the City take such action as it lawfully may to encourage the diversification of industry, the creation of business opportunities, and the creation of opportunities for gainful employment within the jurisdiction of the City. SECTION 2. In making the findings herein, the Commission has considered any adverse competitive effect or impact the Project may have on any similar facility or facility of the same kind already constructed or operating in the corporate boundaries of the City. SECTION 3. The Commission hereby approves the findings of fact and report of the Commission with respect to the Project presented at this meeting. The Secretary of this Commission shall submit such report to the executive director or chairman of the plan commission of the City and to the superintendent of the school corporation where the Project will be located pursuant to Section 23(b) of the Act. SECTION 4. The Commission finds, determines, ratifies and confirms that the issuance and sale of the Bonds in an amount not to exceed Thirty Million Eight Hundred Thousand Dollars ($30,800,000) and the use of a portion of the proceeds of the Bonds to pay costs related to the issuance of the Bonds, pay capitalized interest on the Bonds, if necessary, for a period of not to exceed one (1) year following project completion, fund a debt service reserve fund (if necessary) or the costs of a reserve surety (if necessary), and to provide (or be deemed to provide) the remaining proceeds of the Bonds to the Developer for the financing of a portion of the cost the Project will be of benefit to the health and general welfare of the City, will serve the public purposes referred to above in accordance with the Act, and will fully comply with the Act. SECTION 5. The financing of a portion of the costs of the Project through the issuance of the Bonds, in one or more series, in an amount not to exceed Thirty Million Eight Hundred Thousand Dollars ($30,800,000), is hereby approved and recommended to the Common Council of the City (the “Common Council”).