HomeMy WebLinkAboutResolution No. 3277 Funding of the 2015 Bonds and Creation of Funds and AccountsRESOLUTION NO. 3277
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
COMMISSION ESTABLISHING CERTAIN FUNDS AND ACCOUNTS IN
CONNECTION WITH THE LEASE DATED AS OF FEBRUARY 1, 2015,
BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION
AND THE SOUTH BEND REDEVELOPMENT AUTHORITY
WHEREAS, the South Bend Redevelopment Commission (the "Commission"), 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 "Redevelopment District"),
exists and operates under the provisions of the Redevelopment of Cities and Towns Act of 1953
which has been codified in Indiana Code 36-7-14 et seq., as amended from time to time (the "Act");
and
WHEREAS, the City of South Bend Redevelopment Authority (the "Authority") has been
created pursuant to Indiana Code 36-7-14.5 as a separate body corporate and politic, and as an
instrumentality of the City of South Bend, Indiana (the "City"), to finance local public
improvements for lease to the Commission pursuant to Section 25.2 of the Act and Indiana Code
36-7-14.5; and
WHEREAS, the Commission has previously designated and declared an area in the City,
known as the River West Development Area to be an economic development area and an allocation
area (collectively, the "Area") for the purpose of collecting tax increment finance revenues (the
"TIF Revenues"), adopted an Economic Development Plan, and established an allocation fund for
said Area; and
WHEREAS, the Authority intends to issue its lease rental revenue bonds in the aggregate
principal amount not to exceed Twenty-five Million and 00/100 Dollars ($25,000,000.00),
pursuant to Indiana Code 36-7-14.5-19 and a trust agreement (the "Trust Agreement") to be entered
into by the Authority and a trustee to be selected by the Authority, to be known as the "South Bend
Redevelopment Authority Lease Rental Revenue Bonds of 2015" (the "Bonds"), the proceeds of
which are to be used to finance the acquisition, construction and installation of certain local public
improvements as part of the City’s Smart Streets initiative and Westside Main Streets
Revitalization Plan which local public improvements shall consist of all or any portion of the
acquisition, construction and installation of the following: pavement, streetscape, and sidewalk
improvements, bulb-out installation, street signage and markings, installation of bicycle facilities,
road widening, intersection and traffic signal interconnection improvements, utility relocation,
utility and sidewalk improvements, and installation of lighting and right-of-way improvements, all
of which local public improvements are to be located along the following stretches of road:
(i) Bartlett Street between Lafayette Blvd and Riverside Drive; (ii) Michigan Street between
Riverside Drive and Barbie Street; (iii) Main Street between Park Lane and Barbie Street; (iv) St.
Joseph Street between LaSalle Avenue and Western Avenue; (v) Lafayette Blvd between Park
Lane and Indiana Avenue; (vi) Western Avenue between Michigan Street and Mayflower Road;
(vii) Lincolnway West between West LaSalle Avenue and the City limits (Woodland Avenue);
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Resolution No. 3277
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(viii) Marion and Madison Streets between Michigan Street and Lincolnway West; and (ix) any
cross streets related to the foregoing stretches and various expenses related thereto (collectively,
the "Project") and to pay the cost of issuance of the Bonds; and
WHEREAS, the Authority intends to lease the Project to the Commission pursuant to a
lease dated as of February 1, 2015, as may be amended from time to time (the "Lease"), which
Lease was heretofore approved by this Commission; and
WHEREAS, in order for the Authority to proceed with the issuance of its Bonds, it is
necessary for the Commission to establish certain funds and accounts for the payment of the rentals
owed by the Commission pursuant to said Lease;
NOW, THEREFORE, BE IT RESOLVED, by the South Bend Redevelopment
Commission as follows:
1. The Commission hereby creates and establishes a River West Development Area
Project Principal and Interest Account (the "Lease Account") in the Redevelopment District Bond
Fund, previously created by the Commission, to pay the rentals owed by the Commission pursuant
to the Lease as the same may be amended by an Addendum.
2. The Commission shall levy in each calendar year beginning in the year prior to the
first calendar year in which the Commission is required to pay lease rentals pursuant to the Lease,
a special tax upon all of the taxable property in the Redevelopment District in a total amount
sufficient, together with all other funds (other than special taxes) including, without limitation, the
TIF Revenues deposited in the Lease Account during the previous 12 calendar months prior to
August 1 of such calendar year (in determining whether such levy is necessary, the Commission
may also take into account any funds on deposit in any reserve fund established by the Authority
in the Trust Agreement with respect to the Bonds), to pay all lease rental payments payable in the
12-month period beginning on July 1 of the following calendar year pursuant to Section 4 of the
Lease. The proceeds of such special tax shall be deposited in the Lease Account, and such taxes
and any other funds, including, without limitation, the TIF Revenues deposited in the Lease
Account shall be irrevocably pledged for the purposes set forth in this Resolution. It is the
expectation of the Commission that sufficient TIF Revenues will be available to make such lease
rental payments under the Lease when due, without having to resort to the levy of the special tax
provided herein.
3. This Resolution shall be in full force and effect after its adoption by the
Commission.
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Resolution No. 3277
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ADOPTED AND APPROVED at a meeting of the South Bend Redevelopment
Commission held on the 26th day of February, 2015.
CITY OF SOUTH BEND,
DEPARTMENT OF REDEVELOPMENT
______________________________
Signature
______________________________
Printed Name and Title
South Bend Redevelopment Commission
ATTEST:
______________________________
Signature
______________________________
Printed Name and Title
South Bend Redevelopment Commission
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