HomeMy WebLinkAboutResolution No. 3665 (Taxable ED Revenue Bonds, Series 2026) - SignedRESOLUTION NO. 3665
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
PLEDGING CERTAIN TAX INCREMENT REVENUES TO THE PAYMENT OF
CERTAIN TAXABLE ECONOMIC DEVELOPMENT REVENUE BONDS OF THE
CITY OF SOUTH BEND FOR THE COLFAX CORNER ML, LLC PROJECT
WHEREAS, the South Bend Redevelopment Commission (the “Commission”), the
governing body of the City of South Bend, Indiana, Department of Redevelopment (the
“Department”) 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 heretofore adopted a declaratory resolution (as
subsequently confirmed and amended from time to time, the “Declaratory Resolution”)
designating an area known as the River West Development Area (the “Area”) as an economic
development area pursuant to the Act, designating portions of the Area as allocation areas pursuant
to Section 39 of the Act for purposes of capturing ad valorem property taxes levied and collected
on all taxable real property from the incremental assessed value, and approving an economic
development plan for the Area (the “Plan”); and
WHEREAS, the Commission on December 18, 2025, approved and adopted its Resolution
No. 3661 for the purpose of making additional amendments to the Area and the Plan including to
designate a portion of the Area as a separate allocation area pursuant to Section 39 of the Act to
be known as the Lafayette North Allocation Area (the “Lafayette North Allocation Area”) for
purposes of capturing ad valorem property taxes levied and collected on all taxable real property
from the incremental assessed value located in the Lafayette North Allocation Area; and
WHEREAS, the City of South Bend, Indiana (the “City”), the Commission and Colfax
Corner ML, LLC (the “Developer”), have entered into a Development Agreement, dated as of
December 18, 2025 (the “Development Agreement”), whereby the Developer has agreed that the
Developer will undertake 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 to be located in the
Lafayette North Allocation Area, as more fully described in the Development Agreement (the
“Project”); and
WHEREAS, the City is considering the issuance of its City of South Bend, Indiana,
Taxable Economic Development Revenue Bonds, Series 2026 (Colfax Corner ML, LLC Project)
(with such further series, different series or one or more subseries designation as determined to be
necessary or appropriate), in a maximum aggregate principal amount not exceeding Thirty Million
Eight Hundred Thousand Dollars ($30,800,000) (the “Bonds”), a portion of the net proceeds of
such Bonds to be used for the purpose of financing, refinancing or reimbursing a portion of the
costs of the Project, capitalized interest on the Bonds, if necessary, a debt service reserve fund
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from proceeds of the Bonds or the cost of a reserve surety, if necessary, and costs relating to the
issuance of the Bonds; and
WHEREAS, as an inducement to the Developer to undertake the Project, the Commission
desires to pledge a portion of the Net Project TIF Revenues (as defined herein) to the payment of
the principal of and interest on the Bonds; and
WHEREAS, prior to the issuance of the Bonds, the Indiana Economic Development
Corporpation will take such actions and enter into such agreements necessary to pledge or
otherwise obligate the Pledged IDD Revenues (as defined in the Development Agreement) to the
payment of the principal of and interest on the Bonds; and
WHEREAS, the Commission has determined that the undertaking of the Project, the
issuance of the Bonds by the City and the pledge of the Pledged TIF Revenues (as defined herein)
in the manner set forth herein will further the purposes of the Declaratory Resolution and the Plan,
each as amended;
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment
Commission, as follows:
1. All terms defined herein and all pronouns used in this Resolution shall be deemed
to apply equally to the singular and plural and to all genders. All terms defined elsewhere in this
Resolution shall have the meaning given in such definition. In this Resolution, unless a different
meaning clearly appears from the context:
“Net Project TIF Revenues” shall mean all real property tax proceeds attributable to the
assessed valuation of the parcels comprising the Project Site (as defined in the Development
Agreement) and located in the Lafayette North Allocation Area as of each assessment date in
excess of the base assessed value as described in Indiana Code 36-7-14-39(b)(1) received by the
Commission, less RDC/City Direct Costs.
“Pledged TIF Revenues” shall mean eighty-eight percent (88%) of the Net Project TIF
Revenues.
“RDC/City Direct Costs” shall mean all costs of the Commission and the City to pay annual
fees of the Trustee with respect to the Bonds, if any, and any fees or reasonable costs incurred in
monitoring the Pledged TIF Revenues and the Pledged IDD Revenues in the amount of $3,000
semiannually for the Bonds.
“Trustee” means the trustee for the Bonds.
2. The Commission hereby pledges, pursuant to Sections 39(b)(4)(D) of the Act, the
Pledged TIF Revenues to the payment of the principal of and interest on the Bonds for a term of
years not less than the lesser of the term of the Bonds or twenty-five (25) years from the date of
issuance of the Bonds, all pursuant to the terms of the Pledge Agreement (as defined herein) and
the trust indenture for the Bonds (the “Indenture”).
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3. The pledge of the Pledged TIF Revenues made herein shall be effective as set forth
in Indiana Code 5-1-14-4 without the recording of this Resolution other than in the records of the
Commission or the filing of any other instrument. Notwithstanding the foregoing, in the event that
the Pledged TIF Revenues are in excess of the amount necessary to make scheduled principal and
interest payments on the Bonds when due and to pay any outstanding amounts due and owing on
the Bonds due to shortfalls in Pledged TIF Revenues in previous years (the “Excess TIF
Revenues”), the Commission shall first apply such Excess TIF Revenues to the payment of any
portion of the principal or interest due on the Bonds that remains unpaid and secondly shall retain
any remaining Excess TIF Revenues received and may use such Excess TIF Revenues for any
purpose under the Act as provided in the Pledge Agreement and/or the Indenture.
4. The President and Secretary of the Commission are hereby authorized and directed
to enter into a pledge agreement on behalf of the Commission (the “Pledge Agreement”) providing
that the Pledged TIF Revenues are pledged as described herein and containing such other terms
consistent with this Resolution to evidence the intent of the Commission to secure the Bonds with
the Pledged TIF Revenues as described herein.
5. The Commission hereby authorizes and approves the execution by the Commission
of one or more taxpayer agreements (collectively, the “Taxpayer Agreements”) with the Developer
in connection with the issuance of the Bonds by the City in the event it is determined that such a
taxpayer agreement is necessary in connection with the issuance and sale of the Bonds. On behalf
of the Commission, each of the President or Vice President of the Commission is authorized to
execute and deliver, and the Secretary of the Commission is authorized to attest, one or more
Taxpayer Agreements in such form as they may find acceptable, with the advice of counsel and
consistent with the terms and provisions of this Resolution and the Development Agreement. Any
payments received by the Commission under any such Taxpayer Agreements are hereby pledged
to the payment of the Bonds if and to the extent such Bonds are so secured by the Taxpayer
Agreements under the Indenture.
6. Any officer of the Commission is hereby authorized to take such further actions
and execute on behalf of the Commission such further documents or agreements as any such officer
deems necessary or appropriate to effectuate the purposes of this Resolution.
7. This Resolution shall be deemed to take effect immediately upon adoption by the
Commission. The provisions of this Resolution shall constitute a contract binding between the
Commission and the holder or holders of the Bonds and after the issuance of said Bonds, this
Resolution shall not be repealed or amended in any respect which would adversely affect the right
of such holder or holders of said Bonds.
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ADOPTED AND APPROVED at a meeting of the South Bend Redevelopment
Commission held on the 12th day of February, 2026.
SOUTH BEND
REDEVELOPMENT COMMISSION
By:
President
ATTEST:
Secretary
DMS 50673493