HomeMy WebLinkAbout6. H (2) Res 2555N ( � )
RESOLUTION NO. 2555
A RESOLUTION OF THE SOUTH BEND
REDEVELOPMENT COMMISSION PLEDGING CERTAIN
TAX INCREMENT REVENUES TO THE PAYMENT OF
THE MISHAWAKA GRAPE ROAD TIF LOAN
AND THE REIMBURSEMENT OF
THE SOUTH BEND MAJOR MOVES FUND
(DOUGLAS ROAD WIDENING PROJECT)
WHEREAS, the South Bend Redevelopment Commission (the "Commission "),
the governing body of the City of South Bend, Indiana, Redevelopment District (the "District ")
and the City of South Bend, Indiana, Department of Redevelopment, exists and operates under
the provisions of Ind. Code §36 -7 -14, as amended from time to time (the "Act "); and
WHEREAS, the Commission has previously (i) designated and declared an area
in the City of South Bend, Indiana (the "City "), known as the Douglas Road Economic
Development Area (the "Area ") to be an economic development area within the meaning of Ind.
Code §36 -7 -14; (ii) established the Area as the Douglas Road Economic Development Area
Allocation Area (the "Allocation Area ") to be an allocation area for the purpose of separately
accounting for the tax increment revenues derived from the Area; and (iii) created an allocation
fund for the Area (the "Allocation Fund ") for purpose of tax increment financing; and
WHEREAS, the City intends to borrow $1,150,000 from the City of Mishawaka,
Grape Road TIF (the "Mishawaka Loan ") and to appropriate $1,000,000 from the South Bend
Major Moves Fund (the "Major Moves Money "); and
WHEREAS, the proceeds of both will be used to finance a portion of the costs of
any of the following: (i) Engineering Expenses, (ii) Right of Way Acquisition, (iii) Construction
Costs and Contingency and (iv) Metronet Reimbursement (collectively, the "Improvements ")
which will facilitate the development and construction of the Douglas Road Widening Project
between South Bend Avenue (SR23) and the South Bend / Mishawaka city limits (the "Project ");
and
WHEREAS, the Commission desires to pledge tax increment revenues allocated
to the Commission and resulting solely from the increase in the assessed value of real property
and improvements thereon located in the Area and deposited into the Allocation Fund, as
required by Ind. Code §36- 7- 14 -26, as a result of the Project (the "Project Tax Increment
Revenues ") to the monthly payment of principal of, plus interest on, the Mishawaka Loan first
and secondly to the monthly reimbursement of principal of, plus interest on, the Major Moves
Money; and
WHEREAS, the Commission anticipates that sufficient Project Tax Increment
Revenues will be available to the Commission to pay the principal of, plus interest on, both the
Mishawaka Loan and the Major Moves Money over the duration of twenty (20) years; and
WHEREAS, neither the City nor the Commission shall have any obligation with
respect to the payment of principal of or interest on the Mishawaka Loan or reimbursement of
principal of or interest on the Major Moves Money other than the use of the Project Tax
Increment Revenues toward the payment or reimbursement thereof,
NOW THEREFORE, BE IT RESOLVED, by the City of South Bend, Indiana,
Redevelopment Commission as follows:
1. The Commission hereby pledges the Project Tax Increment Revenues,
projected in EXHIBIT A, to the payment of the principal of and interest on the Mishawaka Loan
and reimbursement of the principal of, plus interest on, the Major Moves Money (collectively,
the "Pledge Payments "). Such pledge shall remain in effect for a period of up to, but not
exceeding twenty (20) years from the date of receipt of proceeds of the Mishawaka Loan. Such
Pledge shall terminate at the earliest of the final Pledge Payment or the conclusion of said twenty
(20) year period.
2. There is hereby created and established a Douglas Road Widening Project
Principal and Interest Account of the Allocation Fund (the "Principal and Interest Account ").
3. Project Tax Increment Revenues, received by the Commission, shall be
deposited into the Principal and Interest Account and shall be appropriated for the Pledge
Payments. Project Tax Increment Revenues received in excess of the amount necessary (i) to
pay the Pledge Payments currently due and (ii) to pay any amount of Pledge Payments not
previously paid when due or interest accruing thereon as a result of an insufficiency in Project
Tax Increment Revenues in a prior year or years, do not remain pledged and may be used by the
Commission for any purpose set forth in Section 39 of the Act (IC 36- 7- 14 -39); provided
however, that the Commission may only use such excess Project Tax Increment Revenues to the
extent that the balance of the Principal and Interest Account exceeds the amount necessary to
satisfy all principal and interest payments on the Mishawaka Loan and on the Major Moves
Money that are currently due or past due.
4. This Resolution shall be in full force and effect after its adoption by the
Commission, shall be subject to completion of all actions necessary to create the obligations
referred to herein and shall not be repealed or amended in any manner which would serve to
adversely affect the pledge of the Project Tax Increment Revenues contained herein.
(Signature page follows)
2
ADOPTED at a meeting of the South Bend Redevelopment Commission held on
January 16, 2009, in Room 1308, County -City Building, 227 West Jefferson Boulevard, South
Bend, Indiana 46601.
ATTEST:
Nancy N. King, Secretary
SOUTH BEND REDEVELOPMENT
COMMISSION
Marcia Jones, President
3
EXHIBIT A
Summary Sources and Uses
Semi Annual Debt Service Summary
TIF Revenue Projection for Building #1
TIF Revenue Projection for Building #2
Amortization of Major Moves Fund Reimbursement
Amortization of Mishawaka TIT Loan
11
City of South Bend
Douglas Road Project
Source & Use 1113109
Uses:
Total Sources 3,100,000
Engineering
Project
Right of Way
Totals
Sources:
2,383,594
SB Major Moves Loan
1,000,000
Mishawaka Loan
1,150,000
SB Sewer Capital Grant
700,000
Mishawaka Grant
250,000
Uses:
Total Sources 3,100,000
Engineering
275,000
Right of Way
298,041
Construction
2,383,594
Contingency & Misc.
119,180
Metronet Reimbursement
150,000
Total Uses 3,225,815
City of South Bend
Douglas Road Project
Review of TIF to Cover Debt Service - 1/13109
South Bend
Mishawaka
Loan
Loan
Metronet
Total
Building 1
Building 2
Total
Excess
Cumulative
Payment
Payment
Payment
Payments
TIF Revenue
TIF Revenue
TIF Revenue
TIF Revenue
Excess
8/15/2008
0
34,520
0
34,520
34,520
34,520
2/15/2009
0
34,520
0
34,520
34,520
69,040
8/15/2009
39,836
45,812
85,648
35,334
0
35,334
(50,314)
18,727
2/15/2010
39,836
45,812
85,648
67,184
0
67,184
(18,464)
263
8/15/2010
39,836
45,812
85,648
58,885
0
58,885
(26,763)
(26,500)
2/15/2011
39,836
45,812
85,648
58,885
0
58,885
(26,763)
(53,264)
8/15/2011
39,836
45,812
85,648
58,885
0
58,885
(26,763)
(80,027)
2/15/2012
39,836
45,812
85,648
58,885
68,293
127,178
41,530
(38,497)
8/15/2012
39,836
45,812
85,648
58,885
68,293
127,178
41,530
3,033
2/15/2013
39,836
45,812
32,500
118,148
58,885
68,293
127,178
9,030
12,063
8/15/2013
39,836
45,812
32,500
118,148
58,885
68,293
127,178
9,030
21,093
2/15/2014
39,836
45,812
30,000
115,648
58,885
68,293
127,178
11,530
32,624
8/15/2014
39,836
45,812
30,815
116,463
58,885
68,293
127,178
10,715
43,339
2/15/2015
39,836
45,812
85,648
58,885
68,293
127,178
41,530
84,869
8/15/2015
39,836
45,812
85,648
58,885
68,293
127,178
41,530
126,399
2/15/2016
39,836
45,812
85,648
58,885
68,293
127,178
41,530
167,929
8/15/2016
39,836
45,812
85,648
58,885
68,293
127,178
41,530
209,459
2/15/2017
39,836
45,812
85,648
58,885
68,293
127,178
41,530
250,989
8/15/2017
39,836
45,812
85,648
58,885
68,293
127,178
41,530
292,519
2/15/2018
39,836
45,812
85,648
58,885
68,293
127,178
41,530
334,049
8/15/2018
39,836
45,812
85,648
58,885
68,293
127,178
41,530
375,579
2/15/2019
39,836
45,812
85,648
58,885
68,293
127,178
41,530
417,109
8115/2019
39,836
45,812
85,648
58,885
68,293
127,178
41,530
458,639
2/15/2020
39,836
45,812
85,648
58,885
68,293
127,178
41,530
500,169
8/15/2020
39,836
45,812
85,648
58,885
68,293
127,178
41,530
541,699
2/15/2021
39,836
45,812
85,648
58,885
68,293
127,178
41,530
583,229
8/15/2021
39,836
45,812
85,648
58,885
68,293
127,178
41,530
624,759
2/15/2022
39,836
45,812
85,648
58,885
68,293
127,178
41,530
666,289
8/15/2022
39,836
45,812
85,648
58,885
68,293
127,178
41,530
707,819
2/15/2023
39,836
45,812
85,648
58,885
68,293
127,178
41,530
749,349
8/15/2023
39,836
45,812
85,648
58,885
68,293
127,178
41,530
790,879
2/15/2024
39,836
45,812
85,648
58,885
68,293
127,178
41,530
832,409
8/15/2024
39,836
45,812
85,648
58,885
68,293
127,178
41,530
873,940
2/15/2025
39,836
45,812
85,648
58,885
68,293
127,178
41,530
915,470
8/15/2025
39,836
45,812
85,648
58,885
68,293
127,178
41,530
957,000
2/15/2026
39,836
45,812
85,648
58,885
68,293
127,178
41,530
998,530
8/15/2026
39,836
45,812
85,648
58,885
68,293
127,178
41,530
1,040,060
2/15/2027
39,836
45,812
85,648
58,885
68,293
127,178
41,530
1,081,590
8/15/2027
39,836
45,812
85,648
58,885
68,293
127,178
41,530
1,123,120
2/15/2028
39,836
45,812
85,648
58,885
68,293
127,178
41,530
1,164,650
8/15/2028
39,836
45,812
85,648
58,885
68,293
127,178
41,530
1,206,180
2/15/2029
39,836
45,812
85,648
58,885
68,293
127,178
41,530
1,247,710
Totals
1,593,449
1,832,467
125,815
3,551,731
2,409,178
2,390,263
4,799,441
1,247,710
Year
City of South Bend
Douglas Road Project
TIF Revenue Projection for Building #1
Prepared 1/13/09
Net
Annual
Private
Assessed
Tax
TIF
TIF
Investment
Value
Rate
Revenue
Revenue
2007
4,750,000
1,745,900
6/30/2008
4,750,000
1,745,900
3.9544%
34,520
34,520
2008
1213/2008
4,750,000
1,745,900
3.9544%
34,520
6/30/2009
4,750,000
3,319,600
4.0477 %
35,334
69,855
2009
12/3/2009
4,750,000
3,319,600
4.0477%
67,184
6/30/2010
4,750,000
3,319,600
3.5477%
58,885
126,068
2010
12/3/2010
4,750,000
3,319,600
3.5477%
58,885
6/3012011
4,750,000
3,319,600
3.5477%
58,885
117,769
2011
12/3/2011
4,750,000
3,319,600
3.5477%
58,885
6/30/2012
4,750,000
3,319,600
3.5477%
58,885
117,769
2012
12/312012
4,750,000
3,319,600
3.5477%
58,885
6/30/2013
4,750,000
3,319,600
3.5477%
58,885
117,769
2013
12/312013
4,750,000
3,319,600
3.5477%
58,885
6/30/2014
4,750,000
3,319,600
3.5477%
58,885
117,769
2014
12/3/2014
4,750,000
3,319,600
3.5477%
58,885
613012015
4,750,000
3,319,600
3.5477%
58,885
117,769
2015
12/312015
4,750,000
3,319,600
3.5477%
58,885
6130/2016
4,750,000
3,319,600
3.5477%
58,885
117,769
2016
12/312016
4,750,000
3,319,600
3.5477%
58,885
6130/2017
4,750,000
3,319,600
3.5477%
58,885
117,769
2017
1213/2017
4,750,000
3,319,600
3.5477%
58,885
6/30/2018
4,750,000
3,319,600
3.5477%
58,885
117,769
2018
1213/2018
4,750,000
3,319,600
3.5477%
58,885
6/30/2019
4,750,000
3,319,600
3.5477%
58,885
117,769
2019
12/3/2019
4,750,000
3,319,600
3.5477%
58,885
6/30/2020
4,750,000
3,319,600
3.5477%
58,885
117,769
2020
12/3/2020
4,750,000
3,319,600
3.5477%
58,885
6/30/2021
4,750,000
3,319,600
3.5477%
58,885
117,769
2021
12/3/2021
4,750,000
3,319,600
3.5477%
58,885
6/30/2022
4,750,000
3,319,600
3.5477%
58,885
117,769
2022
12/3/2022
4,750,000
3,319,600
3.5477%
58,885
6/30/2023
4,750,000
3,319,600
3.5477%
58,885
117,769
2023
12/3/2023
4,750,000
3,319,600
3.5477%
58,885
6/30/2024
4,750,000
3,319,600
3.5477%
58,885
117,769
2024
1213/2024
4,750,000
3,319,600
3.5477%
58,885
6130/2025
4,750,000
3,319,600
3.5477%
58,885
117,769
2025
12/3/2025
4,750,000
3,319,600
3.5477%
58,885
6/3012026
4,750,000
3,319,600
3.5477%
58,885
117,769
2026
12/3/2026
4,750,000
3,319,600
3.5477%
58,885
6/30/2027
4,750,000
3,319,600
3.5477%
58,885 117,769 2027
12/3/2027
4,750,000
3,319,600
3.5477%
58,885
6/30/2028
4,750,000
3,319,600
3.5477%
58,885 117,769 2028
12/3/2028
4,750,000
3,319,600
3.5477%
58,885 58,885 2028
Total 2,409,178
Year
City of South Bend
Douglas Road Project
TIF Revenue Projection for Building #2
Prepared 1/13/09
Net
Annual
Private
Assessed
Tax
TIF
TIF
Investment
Value
Rate
Revenue
Revenue
2007
0
0
6/30/2008
0
0
3.9544%
0
0
2008
1213/2008
0
0
3.9544%
0
6/30/2009
5,500,000
0
4.0477%
0
0
2009
12/3/2009
5,500,000
0
4.0477%
0
6/30/2010
5,500,000
0
3.5477%
0
0
2010
12/3/2010
5,500,000
0
3.5477%
0
6/30/2011
5,500,000
3,850,000
3.5477%
0
0
2011
1213/2011
5,500,000
3,850,000
3.5477%
68,293
6/3012012
5,500,000
3,850,000
3.5477%
68,293
136,586
2012
1213/2012
5,500,000
3,850,000
3.5477%
68,293
6/30/2013
5,500,000
3,850,000
3.5477%
68,293
136,586
2013
12/3/2013
5,500,000
3,850,000
3.5477%
68,293
6/3012014
5,500,000
3,850,000
3.5477%
68,293
136,586
2014
12/312014
5,500,000
3,850,000
3.5477%
68,293
6130/2015
5,500,000
3,850,000
3.5477%
68,293
136,586
2015
12/312015
5,500,000
3,850,000
3.5477%
68,293
6/30/2016
5,500,000
3,850,000
3.5477%
68,293
136,586
2016
1213/2016
5,500,000
3,850,000
3.5477%
68,293
6/30/2017
5,500,000
3,850,000
3.5477%
68,293
136,586
2017
12/3/2017
5,500,000
3,850,000
3.5477%
68,293
6/30/2018
5,500,000
3,850,000
3.5477%
68,293
136,586
2018
12/3/2018
5,500,000
3,850,000
3.5477%
68,293
613012019
5,500,000
3,850,000
3.5477%
68,293
136,586
2019
12/312019
5,500,000
3,850,000
3.5477%
68,293
613012020
5,500,000
3,850,000
3.5477%
68,293
136,586
2020
12/312020
5,500,000
3,850,000
3.5477%
68,293
6/30/2021
5,500,000
3,850,000
3.5477%
68,293
136,586
2021
1213/2021
5,500,000
3,850,000
3.5477%
68,293
6/30/2022
5,500,000
3,850,000
3.5477%
68,293
136,586
2022
12/3/2022
5,500,000
3,850,000
3.5477%
68,293
613012023
5,500,000
3,850,000
3.5477%
68,293
136,586
2023
12/3/2023
5,500,000
3,850,000
3.5477%
68,293
6/30/2024
5,500,000
3,850,000
3.5477%
68,293
136,586
2024
1213/2024
5,500,000
3,850,000
3.5477%
68,293
6/30/2025
5,500,000
3,850,000
3.5477%
68,293
136,586
2025
121312025
5,500,000
3,850,000
3.5477%
68,293
6/30/2026
5,500,000
3,850,000
3.5477%
68,293
136,586
2026
12/3/2026
5,500,000
3,850,000
3.5477%
68,293
6/30/2027
5,500,000
3,850,000
3.5477%
68,293 136,586 2027
12/3/2027
5,500,000
3,850,000
3.5477%
68,293
6/30/2028
5,500,000
3,850,000
3.5477%
68,293 136,586 2028
12/3/2028
5,500,000
3,850,000
3.5477%
68,293 68,293 2028
Total 2,390,263
City of South Bend
Douglas Road Project
Major Moves Fund 412
Reimbursement to be
Repaid from Project TIF Revenue
Prepared 1/13/09
Original
Capitalized
New
Principal
Interest
Principal
Payment
Principal
1,000,000
0
1,000,000
$39,836.23
Rate
0.05
Term (Yrs)
20
Payment
Interest
Principal
Balance
Beginning Balance
1,000,000
8/15/2009
39,836
25,000
14,836
985,164
2/1512010
39,836
24,629
15,207
969,957
8/15/2010
39,836
24,249
15,587
954,369
2/15/2011
39,836
23,859
15,977
938,392
8/15/2011
39,836
23,460
16,376
922,016
2/15/2012
39,836
23,050
16,786
905,230
8/15/2012
39,836
22,631
17,205
888,025
2/15/2013
39,836
22,201
17,636
870,389
8/15/2013
39,836
21,760
18,077
852,312
2/15/2014
39,836
21,308
18,528
833,784
8/15/2014
39,836
20,845
18,992
814,792
2/15/2015
39,836
20,370
19,466
795,326
8/15/2015
39,836
19,883
19,953
775,373
2/15/2016
39,836
19,384
20,452
754,921
8115/2016
39,836
18,873
20,963
733,958
2/15/2017
39,836
18,349
21,487
712,470
8/15/2017
39,836
17,812
22,024
690,446
2/15/2018
39,836
17,261
22,575
667,871
8/15/2018
39,836
16,697
23,139
644,731
2/15/2019
39,836
16,118
23,718
621,014
8/15/2019
39,836
15,525
24,311
596,703
2/15/2020
39,836
14,918
24,919
571,784
8/15/2020
39,836
14,295
25,542
546,242
2/15/2021
39,836
13,656
26,180
520,062
8/15/2021
39,836
13,002
26,835
493,227
2/15/2022
39,836
12,331
27,506
465,722
8/15/2022
39,836
11,643
28,193
437,529
2/15/2023
39,836
10,938
28,898
408,631
8/15/2023
39,836
10,216
29,620
379,010
2/15/2024
39,836
9,475
30,361
348,649
8/15/2024
39,836
8,716
31,120
317,529
2/15/2025
39,836
7,938
31,898
285,631
8/15/2025
39,836
7,141
32,695
252,936
2/15/2026
39,836
6,323
33,513
219,423
8/15/2026
39,836
5,486
34,351
185,072
2/15/2027
39,836
4,627
35,209
149,863
8/15/2027
39,836
3,747
36,090
113,773
2/15/2028
39,836
2,844
36,992
76,781
8/15/2028
39,836
1,920
37,917
38,865
2/15/2029
39,836
972
38,865
(0)
Totals
1,593,449
593,449
1,000,000
City of South Bend
Douglas Road Project
Mishawaka TIF Loan
Amortization of Loan to Project to be
Repaid from Project TIF Revenue
Prepared 1/13/09
Original
Capitalized
New
Principal
Interest
Principal
Payment
Principal
1,150,000
0
1,150,000
$45,811.67
Rate
0.05
Term (Yrs)
20
Payment
Interest
Principal
Balance
Beginning Balance
1,150,000
8/15/2009
45,812
28,750
17,062
1,132,938
2/15/2010
45,812
28,323
17,488
1,115,450
8/15/2010
45,812
27,886
17,925
1,097,525
2/15/2011
45,812
27,438
18,374
1,079,151
8/15/2011
45,812
26,979
18,833
1,060,318
2/15/2012
45,812
26,508
19,304
1,041,015
8/15/2012
45,812
26,025
19,786
1,021,228
2/15/2013
45,812
25,531
20,281
1,000,947
8/15/2013
45,812
25,024
20,788
980,159
2/15/2014
45,812
24,504
21,308
958,852
8/15/2014
45,812
23,971
21,840
937,011
2/15/2015
45,812
23,425
22,386
914,625
8/15/2015
45,812
22,866
22,946
891,679
2/15/2016
45,812
22,292
23,520
868,159
8/15/2016
45,812
21,704
24,108
844,051
2/15/2017
45,812
21,101
24,710
819,341
8/15/2017
45,812
20,484
25,328
794,013
2/15/2018
45,812
19,850
25,961
768,052
8/15/2018
45,812
19,201
26,610
741,441
2/15/2019
45,812
18,536
27,276
714,166
8/15/2019
45,812
17,854
27,958
686,208
2/15/2020
45,812
17,155
28,656
657,552
8/15/2020
45,812
16,439
29,373
628,179
2/15/2021
45,812
15,704
30,107
598,071
8/15/2021
45,812
14,952
30,860
567,212
2/15/2022
45,812
14,180
31,631
535,580
8/15/2022
45,812
13,390
32,422
503,158
2/15/2023
45,812
12,579
33,233
469,925
8/15/2023
45,812
11,748
34,064
435,862
2/15/2024
45,812
10,897
34,915
400,947
8/15/2024
45,812
10,024
35,788
365,159
2/15/2025
45,812
9,129
36,683
328,476
8/15/2025
45,812
8,212
37,600
290,876
2/15/2026
45,812
7,272
38,540
252,336
8/15/2026
45,812
6,308
39,503
212,833
2/15/2027
45,812
5,321
40,491
172,342
8/15/2027
45,812
4,309
41,503
130,839
2/15/2028
45,812
3,271
42,541
88,299
8/15/2028
45,812
2,207
43,604
44,694
2/15/2029
45,812
1,117
44,694
(0)
Totals 1,832,467 682,467 1,150,000