HomeMy WebLinkAboutApproving the Issuance and sale of South Bend Redevelopment Authority Lease Rental refunding bonds (MPAC Project)RESOLUTION
3952-09
Passed by the Common Council of the City of South Bend, Indiana
February 23, O9
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Attest:
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
February 24, 20 09
Approved and signed by me February 2 5 , 20 0 9
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City Clerk
RESOLUTION NO. ~ ~ ~~" - ~
A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA, APPROVING THE
ISSUANCE AND SALE OF SOUTH BEND REDEVELOPMENT
AUTHORITY LEASE RENTAL REFUNDING BONDS (MORRIS
PERFORMING ARTS CENTER PROJECT)
WHEREAS, the Common Council of the City of South Bend, Indiana (the
"Common Council") is the fiscal body of the City of South Bend, Indiana (the "City"); and
WHEREAS, the South Bend Redevelopment Commission (the "Commission") is
the governing body of the South Bend Redevelopment District (the "District"); and
WHEREAS, the 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 to finance local public improvements for lease to the Commission; and
WHEREAS, the Authority previously entered into a lease with the Commission
dated as of May 1, 1997, as amended (the "Lease"), which Lease was heretofore approved by this
Common Council and pursuant to which Lease the Authority leased to the Commission certain
local public improvements, namely the Morris Performing Arts Center, which includes the Morris
Civic Center and certain portions of the Palais Royale facility and related improvements; and
WHEREAS, the Authority previously issued its Lease Rental Revenue Bonds of
1998 (Morris Performing Arts Center Project) (the "Prior Bonds") for the purpose of acquiring,
constructing, renovating and equipping the Morris Performing Arts Center; and
WHEREAS, the Authority previously adopted its Resolution No. 162 at a meeting
of the Authority held on January 16, 2008, in which the Authority determined to issue and sell its
lease rental refunding bonds in an aggregate principal amount not to exceed Eight Million Dollars
($8,000,000) (the "Refunding Bonds") for the purpose of currently refunding the Prior Bonds to
provide a savings; and
WHEREAS, the Authority was not able to sell its Refunding Bonds at interest rates
which would provide sufficient savings prior to July 1, 2008, due to market conditions; and
WHEREAS, Section 164 of P.L. 146-2008 added § 6-1.1-17-20.5 to the Indiana
Code effective as of July 1, 2008, which now requires that the Common Council, as the fiscal body
of the City, approve of the issuance of the proposed Refunding Bonds by the Authority; and
WHEREAS, as a result of the issuance of the Refunding Bonds and the
corresponding reduction of rental payments due under the Lease, the Commission will achieve
significant annual savings; and
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NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City
of South Bend, Indiana, as follows:
Section I. The issuance of the Refunding Bonds by the Authority for the purpose of
refunding the Prior Bonds, which will permit the Lease to be amended to reduce the rental
payments due thereunder by the Commission to the Authority, thus achieving a savings to the
Commission, is hereby approved.
Section II. This Resolution shall be in full force and effect from and after its
passage by the Common Council and approval b he Mayor , s ro 'ded by la
Member of the Common Council
Nt.ESENTED Z'2.3_09
NOT APPRC~EO
ADOPTED ~„ Z3 -a~
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E Q i ~ 2009
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TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
09-18 A RESOLUTION O
CITY OF SOUTH
ISSUANCE AND
REDEVELOPMENT
REFUNDING BON
CENTER PROJECT)
F THE COMMON COUNCIL OF THE
BEND, INDIANA, APPROVING THE
SALE OF SOUTH BEND
AUTHORITY LEASE RENTAL
DS (MORRIS PERFORMING ARTS
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.
Ann Puzzello
Chairperson, Committee of the Whole