HomeMy WebLinkAboutApproving of the Issuance of Lease Rental Revenue Refunding Bonds for the Purpose of Advance Refunding (Eddy St. Commons Project)Attest:
RESOLUTION
4473 -15
Passed by the Common Council of the City of South Bend, Indiana
July 13,
15
20 __.
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
July 14 20 15
H 1
Approved and signed by me v j I � 20 S
City Clerk
RESOLUTION NO. 13—� S
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY
OF SOUTH BEND, INDIANA, APPROVING OF THE ISSUANCE
OF LEASE RENTAL REVENUE REFUNDING BONDS BY THE
SOUTH BEND REDEVELOPMENT AUTHORITY FOR THE
PURPOSE OF ADVANCE REFUNDING THE REDEVELOPMENT
AUTHORITY'S LEASE RENTAL REVENUE BONDS OF 2008
(EDDY STREET COMMONS PROJECT) AND REGARDING
CERTAIN RELATED MATTERS
WHEREAS, the Common Council ( "Common Council ") of the City of South
Bend, Indiana (the "City ") at its meeting on December 10, 2007, adopted Ordinance No. 9814-
07, approving a lease (the "Lease ") between the South Bend Redevelopment Authority (the
"Authority ") and the South Bend Redevelopment Commission (the "Commission ") for certain
local public improvements now located in the River East Development Area (formerly known as
the Northeast Neighborhood Development Area) including, without limitation: (i) a parking
garage structure; the reconstruction and/or the extension of Eddy, Burns, Georgiana, Duey, and
Napoleon Streets; the upgrading and replacement of water mains, sanitary and storm sewers and
site preparation; the extension and upgrading of electrical, telephone and high speed internet
services; other related services including, without limitation, engineering and geotechnical
testing; and related improvements (collectively, the "Project "); and
WHEREAS, the Authority previously issued its Lease Rental Revenue Bonds of
2008 (Eddy Street Commons Project) in the aggregate principal amount of Thirty-six Million
and 00 /100 Dollars ($36,000,000.00) (the 'Prior Bonds "), for the purpose of financing a portion
of the costs of the Project and the costs of issuance of the Prior Bonds; and
WHEREAS, the Authority has adopted Resolution No. 195 at a meeting held on
June 26, 2015, determining to proceed with the advance refunding of the Prior Bonds with the
issuance of its lease rental revenue refunding bonds (the "Refunding Bonds ") for the purpose of
reducing rental payments paid by the Commission under the Lease to effect a savings, subject to
approval of the issuance of the Refunding Bonds by this Common Council; and
WHEREAS, the Commission has adopted Resolution No. 3298 at a meeting held
on June 25, 2015, approving of the issuance of the Refunding Bonds by the Authority and
determining to maintain the funds and accounts previously created for the payment of the rental
payments due under the Lease; and
WHEREAS, in conjunction with the issuance of the Refunding Bonds, the
Authority and the Commission would enter into an addendum to the Lease (the "Addendum ") in
order to reduce rental payments paid by the Commission under the Lease to correspond to the
savings achieved through the issuance of Refunding Bonds; and
US.57683762.01
WHEREAS, the Common Council desires to approve the Authority proceeding to
issue the Refunding Bonds and the Authority and the Commission entering into the Addendum,
pursuant to Indiana Code 36 -7- 14.5 -13, for the purpose of reducing the lease rentals payable
under the Lease following the issuance of the Refunding Bonds;
THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby approves the issuance by the
Authority of the Refunding Bonds in the aggregate principal amount not to exceed $37,350,000
for the purpose of advance refunding the Prior Bonds in order to reduce the amount of the lease
rentals payable under the Lease by the Commission, provided that the Authority shall issue the
Refunding Bonds only in the event that the refunding results in a net present value savings of at
least One Million and 00 /100 Dollars ($1,000,000.00). The maximum interest rate on the
Refunding Bonds shall not exceed five percent (5.0 %) and the final payment on the Refunding
Bonds shall be not later than February 15, 2033 (the same final payment date of the Prior
Bonds). The Refunding Bonds shall be subject to optional and mandatory sinking fund
redemption as set forth in the Bond Resolution.
SECTION II. The Common Council hereby approves of the Authority and the
Commission entering into the Addendum, pursuant to Indiana Code 36 -7- 14.5 -13, following the
sale of the Refunding Bonds for the purpose of reducing the rentals due under the Lease.
SECTION III. This Resolution shall be in full force and effect from and after the
time it has been adopted by the Common Council, approved by the Mayor, and otherwise
executed and delivered in accordance with any and all laws pertaining thereto.
PRtStNIED x--13
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COMMON COUNCIL OF THE
O H BEND, INDIANA
Member of t e ommon Council
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Filed",vat
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CITY CLERIC, SOUTH BEND, IN
227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601 -1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY INVESTMENT
SCOTT FORD, EXECUTIVE DIRECTOR
June 30, 2015
Mr. Tim Scott, President
South Bend Common Council
41h Floor County -City Building
South Bend, IN 46601
RE: Eddy Street Commons Bond Refunding
Dear President Scott:
PHONE: 574/235.9371
FAX: 574/235-9021
Attached for the Common Council's consideration is a Resolution to approve an
addendum to the Original Lease between the Redevelopment Authority and Redevelopment
Commission for the 2008 Eddy Street Commons Project Bonds, which financed the City's local
public improvements for the Eddy Street Commons project, including the parking garage,
reconstruction of certain streets and alleys, utility upgrades, etc.
Pursuing a refunding of the 2008 Eddy Street Bonds under current rates anticipates an
approximate savings of $3,000,000 over the 18 year life of the bonds. The estimated bond
refinance rate is anticipated at 3.34 %.
The Bonds current interest rate is 5.796 %. The bond refunding will only occur if a savings of at
least $1,000,000 dollars can be achieved. Current interest rates would have to increase 70 basis
points between now and the expected closing the end of August to cancel the proposed bond
refunding.
The Redevelopment Commission approved the bond refunding with Resolution No. 3298, the
Redevelopment Authority approved the bond refunding with Resolution No. 195. Council
approval of this Resolution will allow the issuance, sale, and delivery of the Refunding Bonds, a
Supplemental Trust Agreement with US Bank, and other necessary documents upon advice of
legal counsel that will be necessary for the bond refunding.
Thank u� / I
Brock Zeeb
Director of Economic Resources
Department of Community Investment
City of South Bend.
PLANNING NEICHRORHOOD ENGAGEMENT BUSINESS DEVELOPMENT
JITIN KAIN PAMELA C. MEYER CHRIS FIELDING
Filed In €�'. `+e ('s Off!CQ
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JOHas ye ;i'if
CITY CLERK, 60i —t" i _3IEND, IN
ECONOMIC RESOURCES
BROCK ZEES
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TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
15 -61 A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, APPROVING OF THE
ISSUANCE OF LEASE RENTAL REVENUE REFUNDING
BONDS BY THE SOUTH BEND REDEVELOPMENT
AUTHORITY FOR THE PURPOSE OF ADVANCE
REFUNDING THE REDEVELOPMENT AUTHORITY'S
LEASE RENTAL REVENUE BONDS OF 2008 EDDY
STREET COMMONS PROJECT AND REGARDING
CERTAIN RELATED MATTERS
Respectfully report that they have examined the matter and that in their opinion,
this bill is being recommended to the full Council with a favorable
recommendation.
This bill was heard by the Community Investment Committee.
Karen L. White
Chairperson, Committee of the Whole