HomeMy WebLinkAboutNo. 3198 approving $4,000,000 of Qualified Zone Academy Bonds (South Bend Career Academy)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 held on January 16,
2014, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601.
CITY OF SOUTH BEND,
DEPARTMENT OF REDEVELOPMENT
Signature
Marcia I. Jones President
Printed Name and Title
South Bend Redevelopment Commission
ATTEST:
i hire
Tkona 1 ci F. Inks , Secretary
Printed Name an Tit e
South Bend Redevelopment Commission
EXHIBIT A
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. I
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.
Presiding: David Relos, Economic Resources
1. CALL TO ORDER
227 West Jefferson Boulevard
South Bend, Indiana
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
Ya
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.
No written public comments concerning the subject of the foregoing public hearing were received by
the undersigned as Public Hearing Officer.
vid Relos
1