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HomeMy WebLinkAboutResolution No. 3678 (Final Bond for Backup Lease Payment) - SignedSouth Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Redevelopment Commission Agenda Item D ATE : 8/7/2026 FROM: Joseph Molnar Deputy Director, Department of Community Investment SUBJECT: Resolution No. 3678 Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res. *Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the authorization of the expenditure of such funds shall be void and of no effect. PURPOSE OF REQUEST: Approval of Resolution No. 3678 SPECIFICS: The proposed resolution would be the final public approval to finalize the issuance of a pay of TIF-funded bonds to support a number of Public Improvement Projects in the River West TIF District. The Redevelopment Authority and the Common Council have approved their portions of the approval process. The projects supported by the proposed bonds include: •Coal Line Phase III Installation - Extension of the existing Coal Line Trail from Lincoln Way West to the Martin Luther King Jr. Dream Center •College Street Streetscape Improvements - Connection with Phase III of the Coal Line Trail •Infrastructure improvements: Consisting of roads, storm water, sewer, and water utility infrastructure improvements along or adjacent to Old Cleveland Road •New Rum Village Neighborhood Community Center - Construction, renovation and equipping of a new Rum Village Neighborhood Center •Near Westside Neighborhood Park – Acquisition costs •Former Drewry’s Brewery Infrastructure -Infrastructure improvements to support the redevelopment of the former Drewry’s property •Muessel Grove Park Improvements -Improvements to Muessel Grove Park immediately adjacent to the former Drewrys Brewery These projects will improve infrastructure, expand access to parks, trails, and community facilities, and strengthen neighborhood connectivity, directly enhancing quality of life for South Bend residents. Staff recommends approval. ______________ ___________Pres/V-Pres ATTEST: __________ _______ _ Date: _____________ _______ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION August 13, 2026 ✓ RESOLUTION NO. 3678 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION ESTABLISHING CERTAIN FUNDS AND ACCOUNTS IN CONNECTION WITH THE LEASE DATED AS OF JULY 1, 2026, BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY AND OTHER RELATED MATTERS 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, 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 of South Bend (the “City”) known as the “River West Development Area” (the “Area”) as an economic development area and an allocation area under the Act and approved an economic development plan for the Area; and WHEREAS, the Commission has given consideration to undertaking 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, the South Bend Redevelopment Authority (the “Authority”) has been created pursuant to the provisions of Indiana Code 36-7-14.5 as a separate body corporate and politic, and as an instrumentality of the City to finance local public improvements for lease to the Commission; and WHEREAS, the Authority intends to lease all or a portion of certain roads in the City consisting of (i) Chapin Street from its intersection with Lincoln Way West to its intersection with Sample Street, (ii) Sample Street from its intersection with Chapin Street to its intersection with 2 Mayflower Road, (iii) Colfax Avenue/Orange Street from its intersection with South Dr. Martin Luther King, Jr. Boulevard to its intersection with Meade Street, (iv) Washington Street/Orange Street from its intersection with Meade Street to its intersection with Kenwood Avenue, (v) Kenwood Avenue from its intersection with Orange Street to its terminus west of Meade Street, and (vi) Meade Street/Bertrand Street from its intersection with Kenwood Avenue to its intersection with Eclipse Place (collectively, the “Leased Premises”) to the Commission pursuant to a lease dated as of July 1, 2026 (the “Lease”), which form of Lease was heretofore approved by this Commission, the Authority and the Common Council of the City in order to provide for the financing of all or any portion of the Projects; and WHEREAS, the Authority and the Commission have given consideration to (i) financing the cost of funding all or any portion of the costs of 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 (defined herein); and (iii) paying costs incurred in connection with the issuance of the Bonds; and WHEREAS, the Authority intends to issue bonds pursuant to IC 36-7-14.5-19 and a trust indenture (the “Trust Indenture”) between the Authority and Regions Bank, as trustee (the “Trustee”), to be known as the “South Bend Redevelopment Authority Lease Rental Revenue Bonds, Series 2026” in one (1) or more series in an aggregate principal amount not to exceed Thirty-Three Million Dollars ($33,000,000) (the “Bonds”), the proceeds of which are to be used to finance all or any 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 Commission intends to pay rent to the Authority pursuant to the terms of the Lease, at a rate not to exceed Five Million Dollars ($5,000,000.00) per year, in semiannual installments, with a term no longer than nineteen (19) years beginning on the date the Authority acquires an interest in the Leased Premises, and ending on the day prior to a date not later than nineteen (19) years after such date of acquisition by the Authority (such rent payments being referred to herein as the “Lease Rental Payments”); and WHEREAS, it is necessary for the Commission to establish certain funds and accounts for the payment of the Lease Rental Payments owed by the Commission pursuant to the Lease; and WHEREAS, the Commission anticipates that sufficient funds will be available to the Commission to make the required Lease Rental Payments with such funds being derived from available tax increment revenues (the “TIF Revenues”) allocated to the Commission from the Area; and WHEREAS, because the Commission anticipates that sufficient TIF Revenues will be available to make the Lease Rental Payments, each of the Projects does not constitute a “controlled project” as such term is defined by Indiana Code 6-1.1-20-1.1; NOW, THEREFORE, BE IT RESOLVED, BY THIS SOUTH BEND REDEVELOPMENT COMMISSION AS FOLLOWS: 3 SECTION 1. The Commission hereby determines that, because the TIF Revenues are expected to be sufficient to pay the Lease Rental Payments, each of the Projects does not constitute a “controlled project” as such term is defined by Indiana Code 6-1.1-20-1.1. SECTION 2. The Commission agrees that it shall levy in each calendar year pursuant to Section 27 of the Act during the term of the Lease a special tax upon all of the taxable property in the District in a total amount necessary, together with all other funds (other than special taxes), including, without limitation, the TIF Revenues then on deposit in the Lease Fund (as defined herein) as of August 1 of such calendar year, to pay all Lease Rental Payments payable in the 12- month period beginning on July 1 of the year following such calendar year pursuant to Section 2 of the Lease. The Controller of the City (the “Controller”) is hereby authorized to create a fund (the “Lease Fund”) for the purpose of depositing such taxes into and such taxes and any other funds deposited in the Lease Fund shall be irrevocably pledged for the purposes set forth in this Resolution, such pledge being effective as set forth in IC 5-1-14-4 without the necessity of filing or recording this resolution or any instrument except in the records of the Commission. In addition to any amounts then on deposit in the Lease Fund, if any, the Commission may also take into account when determining whether it is necessary to levy the special tax as described herein, cash amounts available in the debt service reserve fund which may be established under the Trust Indenture to provide additional security for the Bonds, all based upon the advice and recommendation of the Controller. Notwithstanding the foregoing, the Commission expects that the TIF Revenues will be sufficient to pay the Lease Rental Payments when due without the need for the special tax described herein. SECTION 3. The Commission hereby authorizes and directs the President, Vice President and the Secretary of the Commission to take any and all necessary actions and execute any and all necessary documents to carry out the purpose of this Resolution. This Resolution shall be in full force and effect after its adoption by the Commission. ADOPTED at a meeting of the South Bend Redevelopment Commission held on August 13, 2026, in the City Hall Council Chambers, 3rd Floor, 215 S. Dr. Martin Luther King, Jr., Boulevard, South Bend, Indiana, 46601. SOUTH BEND REDEVELOPMENT COMMISSION By: David Relos, President ATTEST: Eli Wax, Secretary DMS 54455437v1