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Home My WebLink About6 B(1)� A C 1) O� i;l fi l �O Department of Community Investment 1865 , Memorandum January 16, 2014 TO: Redevelopment Commission FROM: Larry Meteiver SUBJECT: Resolution No. 3198 The South Bend Career Academy is seeking the issuance of $4,000,000 in Qualified Zone Academy Bonds for the Academy. These are tax credit bonds, and in no way the obligation of the City or the Issuer. The Issuer of the Bonds will be the Public Finance Authority, a Wisconsin issuer who is authorized to issue bonds nationwide. One of the requirements for the issuance of the bonds is that a public hearing be held in the local jurisdiction where the project is located. Notice was published in the South Bend Tribune for a meeting that was held Monday, December 30, 2013 at 10 am. The public hearing was convened by David Relos at the appointed time and place. No one appeared. The meeting was adjourned. The South Bend Career Academy project was previously approved by the Commission. The Academy is now asking for the Commission's approval of this bond issuance financing. The staff of the Commission is recommending approval as this financing mechanism will move the project forward and will not financially obligate the Commission or the City. 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574 - 235 -9371 1 FAX: 574 - 235 -9021 1 SOUTHBENDIN.GOV RESOLUTION NO. 3198 RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION APPROVING $4,000,000 OF QUALIFIED ZONE ACADEMY BONDS (DIRECT PAY), SERIES 2011 AND 2013 (SOUTH BEND CAREER ACADEMY, INC.) (the "Bonds ") FOR PURPOSES OF SECTION 147(f) OF THE INTERNAL REVENUE CODE OF 1986 WHEREAS, the South Bend Redevelopment Commission (the "Commission") is the governing body of the City of South Bend Department of Redevelopment (the "Local Jurisdiction ") established under the Redevelopment of Cities and Towns Act of 1953, as amended, being Indiana Code § 36-7 -14-1 et seq. (the "Act "); and WHEREAS, South Bend Career Academy, Inc., an Indiana not - for - profit corporation (whether one or more, the "Borrower "), has requested the Public Finance Authority (the "Authority "), a Wisconsin bond issuing commission created under Sections 66.0301, 66.0302 and 66.0304 of the Wisconsin Statutes (the "Act ") to issue revenue bonds to provide financing for eligible costs of the construction, reconstruction, installation and equipping of a charter school facility, together with the purchase of equipment to be utilized therein (collectively, the "Project "), located in the City of South Bend, County of St. Joseph, State of Indiana in which the Project Site is or is to be located (the "Project Jurisdiction "), as described in the notice of public hearing (the " TEFRA Notice ") attached hereto as EXHIBIT A; and WHEREAS, the issuance of the Bonds must, among other things, be approved by the governmental unit issuing the Bonds and the Local Jurisdiction, in compliance with Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code "); and WHEREAS, the TEFRA Notice was published in the South Bend Tribune not less than 14 days prior to the date of the public hearing; and WHEREAS, on December 30, 2013, a public hearing was held by the Commission on behalf of the Local Jurisdiction at the time and place set forth in the TEFRA Notice with respect to the issuance by the Authority of the above - referenced Bonds for the purpose of providing financing for the Project; and WHEREAS, such public hearing was conducted in a manner that provided a reasonable opportunity to be heard for persons with differing views on both the issuance of the Bonds and the location and the nature of the Project which is to be financed by the Bonds; and WHEREAS, attached hereto as EXHIBIT B are the minutes of the public hearing. NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT COMMISSION AS FOLLOWS: 1. For the purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended, the undersigned, on behalf of the Local Jurisdiction, hereby approves the Project and the financing thereof through the issuance of the Bonds by the Authority in an aggregate principal amount not to exceed the amount set forth in the TEFRA Notice attached hereto as EXHIBIT A. 2. This Resolution shall be in full force and effect after its adoption. ADOPTED at a meeting of the South Bend Redevelopment Commission 1 2014, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indi CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOI Signature Printed Name and Title South Bend Redevelopment Comm ATTEST: Signature Printed Name an Tit e South Bend Redevelopment Commission ID►mIl"ll -l.1 TEFRA Notice EXHIBIT A NOTICE OF PUBLIC HEARING Notice is hereby given that the City of South Bend, Indiana (the "Local Jurisdiction ") and the Public Finance Authority ( "Issuer ") will hold a public hearing on December 30, 2013 at 10:00 a.m. in the office of the South Bend Redevelopment Commission, 227 West Jefferson Blvd., Suite 12005, South Bend, Indiana 46601, regarding a proposal by South Bend Career Academy, Inc. (the "Borrower ") to the Issuer to issue its Qualified Zone Academy Bonds, Series 2011 and 2013 (South Bend Career Academy, Inc.) (the `Bonds ") in an aggregate principal amount not to exceed $4,000,000. The proceeds of the Bonds will be loaned to the Borrower for the purpose of financing (i) the renovation and equipping of existing building structures, all located at 3801 Crescent Circle, South Bend, Indiana, and (ii) the costs of issuance incurred in connection therewith (the "Project "). The Project will be owned and operated by the Borrower as an educational facility. The Bonds are expected to be issued pursuant to Section 66.0304 of the Wisconsin Statutes, as amended, and the proceeds from the sale of the Bonds will be loaned to the Borrower and used to finance the renovation, installation and equipping of the Project. The Bonds will not be in any respect general obligations of the Local Jurisdiction, the Issuer, the State of Indiana, or any political subdivision thereof, but will be special, limited obligations of the Issuer as the principal of, premium, if any, and interest on the Bonds will be payable solely from the revenues and receipts derived from the repayment of the loan by the Borrower. The Bonds will be limited obligations of the Issuer payable solely from the loan repayments to be made by the Borrower to the Issuer, and certain funds and accounts established by the Bond Purchase and Loan Agreement for the Bonds. The Bonds will not be payable in any manner from revenues raised by taxation. The Bonds shall not constitute a debt, liability or obligation of the Issuer, the State of Indiana or any political subdivision thereof, or a pledge of the faith and credit or taxing power of any of them, and shall be payable only as aforesaid. The public hearing is being held pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended, and Indiana Code 4- 4- 11- 17(c). The public is invited to comment on any of the matters herein noted, and all taxpayers, residents or interested parties who appear will be given a reasonable opportunity to express their views, both orally and in writing, on the proposed plan of financing for the Project and other matters relating to the Bonds. Written comments may also be submitted to the Issuer through David Relos, Public Hearing Officer, 227 West Jefferson Blvd., Suite 12005, South Bend, Indiana 466015:00 p.m., December 30, 2013. Notice dated December 16, 2013. South Bend Redevelopment Commission 4845- 9876 -9431, v. 1 EXHIBIT B Minutes of Public Hearing CITY OF SOUTH BEND, INDIANA (Local Jurisdiction) MINUTES OF PUBLIC HEARING Monday, December 30, 2013 10:00 a.m. 227 West Jefferson Boulevard Presiding: David Relos, Economic Resources South Bend, Indiana 1. CALL TO ORDER Mr. Relos called the public hearing to order at 10:00 a.m. The following persons were present: Redevelopment Staff- Legal Counsel: Others Present: 2. PUBLIC HEARING Mr. David Relos Mr. Lawrence J. Meteiver None Mr. Relos announced that the purpose of the public hearing was to hear public comment regarding a proposal by South Bend Career Academy, Inc. to the Public Finance Authority to issue its Qualified Zone Academy Bonds, Series 2011 and 2013 in an aggregate principal amount not to exceed $4,000,000. The proceeds of the Bonds will be loaned to South Bend Career Academy, Inc. for the purpose of financing (i) the renovation and equipping of existing building structures, all located at 3801 Crescent Circle, South Bend, Indiana, and (ii) the costs of issuance incurred in connection therewith. Mr. Relos noted that the public hearing is being conducted pursuant to a notice published on December 16, 2013. Mr. Relos called for any public comment concerning the subject of the public hearing. No members of the public were present. No written comments were submitted prior to the time of the public hearing. Mr. Relos adjourned the public hearing at 10:09 a.m. avid Relos No written public comments concerning the subject of the foregoing public hearing were received by the undersigned as Public Hearing Officer. b vid Relos