Loading...
HomeMy WebLinkAbout3B Resolution No. 222 (Lease Rental Revenue Bonds Series 2026) - SignedRESOLUTION NO. 222 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT AUTHORITY AUTHORIZING THE ISSUANCE OF SOUTH BEND REDEVELOPMENT AUTHORITY LEASE RENTAL REVENUE BONDS, SERIES 2026, IN ONE OR MORE SERIES AND ALL MATTERS RELATED THERETO WHEREAS, the South Bend Redevelopment Authority (the "Authority") has been created pursuant to Indiana Code 36-7-14.5 (the "Act") as a separate body corporate and politic serving as an instrumentality of the City of South Bend, Indiana (the "City") to finance local public improvements for lease to the South Bend Redevelopment Commission (the "Commission"); and WHEREAS, the Commission, pursuant to a declaratory resolution previously adopted by the Commission and amended from time to time, has declared a certain area of the City known as the "River West Development Area" (the "Area") as an economic development area and an allocation area under Indiana Code 36-7-14 and approved an economic development plan for the Area; and WHEREAS, the City has determined to undertake certain local public improvement projects in the Area including all or any portion of the following: (i) Coal Line Trail Phase III which consists of the extension of the existing Coal Line Trail from Lincoln Way West to the Martin Luther King Jr. Dream Center, and any related improvements; (ii) College Street streetscape improvements in connection with Phase III of the Coal Line Trail, and any related improvements; (iii) infrastructure improvements consisting of roads, storm water, sewer, and water utility infrastructure improvements along or adjacent to Old Cleveland Road, and any related improvements; (iv) the acquisition, construction, renovation and equipping of a new Rum Village Neighborhood Center, and any related improvements; (v) acquisition of land in the near west side of the City for a new neighborhood park, and any related improvements; (vi) infrastructure improvements to support the redevelopment of the former Drewry's property and improvements to the adjacent Muessel Grove Park, and any related improvements; (vii) acquisition, construction and equipping of a new parking garage structure attached to the Morris Performing Arts Center, and any related improvements; and (viii) all projects related to any of the projects described in clauses (i) through and including (vii) (clauses (i) through and including (viii), collectively, the "Projects"); and WHEREAS, on July 22, 2026, at a duly advertised and noticed public meeting, the Authority did adopt its Resolution No. 220, whereby the Authority indicated its intent to issue its South Bend Redevelopment Authority Lease Rental Revenue Bonds, Series 2026, in one (1) or more series (the "Bonds") to finance all or a portion of the costs of (i) the Projects; (ii) funding a debt service reserve fund or paying the cost of a reserve surety, if necessary, in connection with the issuance of the Bonds; and (iii) issuing the Bonds; and WHEREAS, the Authority now seeks to duly authorize the issuance of the Bonds pursuant to the Act to provide funds for the payment of the costs of funding a portion of the Projects, a reserve fund or paying the cost of a reserve surety, if necessary, and the costs of issuing the Bonds and to authorize and approve such actions as may be necessary to provide for the sale and issuance of the Bonds; NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT AUTHORITY, AS FOLLOWS: SECTION I. In order to pay and finance the costs of the Projects, funding a reserve fund or paying the cost of a reserve surety, if necessary, and the costs of issuing the Bonds, the Authority shall borrow an amount not to exceed Thirty -Three Million Dollars ($33,000,000) through the issuance and sale of its Bonds. The maximum interest rate on any tax-exempt series of the Bonds shall not exceed six and one-half percent (6.50%) per annum and on any taxable series of the Bonds the maximum interest rate shall not exceed eight percent (8.00%) per annum. The Bonds shall mature on February 1 and August 1 of each year, beginning not earlier than February 1, 2027, with a maximum term of not to exceed fifteen (15) years, as finally set forth in the Indenture (as defined herein) at the time of the execution and delivery of the Bonds to the purchaser or purchasers thereof. Interest on the Bonds shall be payable semiannually on February 1 and August I of each year beginning not earlier than February 1, 2027. SECTION 2. The Bonds shall be subject to optional redemption by the Authority prior to maturity on any date no sooner than five (5) years after the date of issuance of the Bonds, on thirty days' notice, in whole or in part, in order of maturity as determined by the Authority, and by lot within a maturity, at face value plus accrued interest to the date fixed for redemption. The Bonds may be subject to mandatory sinking fund redemption if so determined by the winning bidder for the Bonds. The final redemption terms shall be as set forth in the Indenture at the time of the execution and delivery of the Bonds to the purchaser or purchasers thereof. SECTION 3. The Authority hereby appoints Regions Bank to serve as trustee (the "Trustee") for the Bonds to be issued by the Authority. The Trustee shall be charged with and shall by the Indenture undertake the duties and responsibilities customarily associated with such position, as evidenced by the Indenture. SECTION 4. The Bonds shall be issued in accordance with and shall be secured by a Trust Indenture to be dated as of the first day of the month in which the Bonds are issued (the "Indenture"), between the Authority and the Trustee, and the President and/or Vice President and/or the Secretary -Treasurer of the Authority are hereby authorized to approve and execute the form of the Indenture containing provisions necessary or appropriate to effectuate these resolutions and to consummate the sale and issuance of the Bonds, said officers' execution and attestation thereof to be conclusive evidence of their approval of such Indenture. Upon its execution, the Secretary -Treasurer is authorized and directed to place a copy of the Indenture in the minute book immediately following the minutes of this meeting and said Indenture is made a part of this Resolution as if the same were fully set forth herein. SECTION 5. The Authority hereby directs Baker Tilly Municipal Advisors, LLC, as municipal advisor to the Authority (the "Municipal Advisor") to prepare an Official Statement for the Bonds (or each series thereof) for distribution to potential bidders on the Bonds (or each series thereof). The President or any other officer of the Authority is hereby authorized to approve the Official Statement and the President or any other officer of the Authority is hereby authorized to deem and determine the Preliminary Official Statement as the Near Final Official Statement with respect to the Bonds (or each series thereof) for purposes of SEC Rule 15c2-12 (the "Rule"), subject to completion in accordance with such Rule and in the manner acceptable to such officer of the Authority, and to place the Preliminary Official Statement into final form as the Final Official Statement (the "Final Official Statement"). The President or any other officer of the V Authority is authorized to sign the Final Official Statement and by such signature approve its distribution. SECTION b. The Authority authorizes the Bonds to be sold by a negotiated sale as provided herein. The Authority hereby authorizes the Controller of the City (the "Controller") to act on behalf of the Authority with respect to all actions necessary to provide for the sale of the Bonds. The Bonds shall be sold through a negotiated sale in the manner and upon the terms and conditions set forth in a bond purchase agreement (the "Bond Purchase Agreement") between the Authority and an underwriter, bank, financial institution or other purchaser to be selected by the Controller on behalf of the Authority, at such prices and on such terms as may be determined at the time of such sale and approved by the Controller on behalf of the Authority. The President or any other officer of the Authority is hereby authorized and directed to execute and deliver the Bond Purchase Agreement in the form approved by the President or any other officer of the Authority in the name and on behalf of the Authority as evidenced by the execution thereof and the Secretary - Treasurer or any other officer of the Authority is hereby authorized and directed to attest such execution. Such Bond Purchase Agreement may set forth the definitive terms and conditions for such sale, but all such terms and conditions must be consistent with the terms and conditions of this Resolution, including without limitation, the interest rate or rates on the Bonds, which shall not exceed the maximum rate of interest for the Bonds authorized pursuant to this Resolution. SECTION 7. Prior to the delivery of the Bonds, the Secretary -Treasurer shall be authorized to obtain a legal opinion as to the validity of the Bonds from Barnes & Thornburg LLP, bond counsel for the Authority, and to furnish such opinion to the purchaser or purchasers of the Bonds. The cost of such opinion shall be considered as part of the costs incidental to the issuance of the Bonds and shall be paid out of proceeds of said Bonds. SECTION 8. If the Controller, with the advice of the Municipal Advisor to the Authority, determines that market conditions at the time of the sale of the Bonds are such that the Authority is able to finance the Projects and related expenses by issuing Bonds in an aggregate principal amount which is less than $33,000,000, then the Controller, on behalf of the Authority, shall provide for the sale of, and the Authority shall issue, such lesser principal amount of Bonds. SECTION 9. The President or any officer of the Authority or the Controller is authorized and directed to take all steps necessary to procure a rating on the Bonds and/or obtain bond insurance and/or a reserve fund policy for the Bonds to the extent such officer determines, with the advice of the Municipal Advisor, that such rating, insurance, and/or reserve fund policy may be in the best interest of the Authority. SECTION 10. Each officer of the Authority and the Controller is hereby authorized and directed to take all such actions and to execute all such instruments as such officer or officers deem necessary or desirable to carry out the transactions contemplated by this Resolution, including executing a Continuing Disclosure Contract with respect to the Bonds in compliance with the Rule, in such forms as the officer or officers executing the same shall deem proper, to be evidenced by the execution thereof. Any such documents heretofore executed and delivered and any such actions heretofore taken be, and the same hereby are, ratified and approved. SECTION I I . This Resolution and the Indenture upon execution shall constitute a contract between the Authority and the holders of the Bonds, and, after the issuance of the Bonds, this 3 Resolution shall not be repealed or amended in any respect which would adversely affect the rights of such holders so long as the Bonds, or the interest thereon remains unpaid. SECTION 12. This Resolution shall be in full force and effect from and after its passage by the Authority. ADOPTED at a meeting of the South Bend Redevelopment Authority held on August 12, 2026, in the City Hall Council Chambers, 3rd Floor, 215 S. Dr. Martin Luther King, Jr., Boulevard, South Bend, Indiana, 46601. ATTEST: Secret DMs 54456121 v2 El SOUTH BEND REDEVE OP ENT 11 A 1 R- ent