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HomeMy WebLinkAbout9943-09 Appropriating $955,315 of Indiana Community Revitalization Enhancement District increment fundsORDINANCE No. gas Passed by the Common Council of the City of South Bend, Indiana July 13, Attest: Attest: Presented by me to the Mayor of the City of South Bend, Indiana July 14, 2009 City Clerk President of Common Council Approved and signed by me July 14, Zp 0 9 ~~~~~ City Clerk Mayer 2(l9 ORDINANCE NO. ~ ~ ~ 3~~ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA APPROPRIATING $955,315.00 OF INDIANA COMMUNITY REVITALIZATION ENHANCEMENT DISTRICT INCREMENT FUNDS WITHIN THE INDUSTRIAL DEVELOPMENT FUND, FUND 434, FOR THE PURPOSE OF DEVELOPMENT AND REDEVELOPMENT WITHIN THE CITY OF SOUTH BEND STUDEBAKER/OLIVER COMMUNITY REVITALIZATION ENHANCEMENT DISTRICT STATEMENT OF PURPOSE AND INTENT This bill will appropriate $955,315 from the Industrial Development Fund, Fund 434, for repayment of the Section 108 Loan for the Studebaker/Oliver Project. Pursuant to Ind. Code Section 36-7-13-5(c ), the Advisory Commission on Industrial Development met on November 8, 2005 and approved Resolution No. 3-2005 pledging all available CRED Revenues for the repayment of the Section 108 Loan for the Studebaker101iver Project. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana: Section I. The sum of $955,315.00, plus interest earned thereon, from the tax increment revenues within the Community Revitalization Enhancement District (CRED) is hereby appropriated and set aside within CRED Fund 434 for repayment of the Section 108 Loan for the Studebaker/Oliver Project, as previously approved by the Advisory Commission on Industrial Development as evidenced in its Resolution No. 3-2005. Section II. This Ordinance shall be in full force and effect from and after its passage by the Common Council and Approval by the Mayor. Member of the Common Council Presented by me to the Mayor of the City of South Bend, Indiana on the ~~ day of ~ , 2 4 d ~ , at I 1 ~~ 3 ~ o'clock a . m. ~ ~ ~ City Clerk proved and signed by me on the ~ day of , 2 ©~ , at 2.~ ~~ o'clock m. Mayor, ity of uth Bend, Indiana ~-zZ-~~ 1 st READING l3 '° 5 PU~LIC HEARING 1' 3rd READING 1-'~3'`~~ t.OT APPROVFfl ''.EFERRED PASSES '1-L3" 0~ Fll~d Ih Cf~C~C' ~~1~® JU:~iv VLC~r~DE CITY CLEi?is, S0. l;EPiD,1N. TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 46-09 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA APPROPRIATING $955,315.00 OF INDIANA COMMUNITY REVITALIZATION ENHANCEMENT DISTRICT INCREMENT FUNDS WITHIN THE INDUSTRIAL DEVELOPMENT FUND, FUND 434, FOR THE PURPOSE OF DEVELOPMENT AND REDEVELOPMENT WITHIN THE CITY OF SOUTH BEND STUDEBAKER/OLIVER COMMUNITY REVITALIZATION ENHANCEMENT DISTRICT 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 RESOLUTION NO. 3 -2005 RESOLUTION OF,THE SOUTH BEND ADVISORY COMMISSION ON INDUSTRIAL DEVELOPMENT PLEDGING INCOME TAX AND GROSS RETAIL INCREMENTAL AMOUNTS RECEIVED FROM THE STATE OF INDIANA WHEREAS, the South Bend Advisory Commission on Industrial Development (the "Commission") exists and operates under Indiana Code 36-7-13, as amended from time to time (the "Act"); and WHEREAS, on June 13, 2002, the Commission adopted Resolution No. 1-2002 (the "Designating Resolution") designating a community revitalization enhancement district within the meaning of the Act, known as the Studebaker/Oliver CRED area (the "District"), approving a plan for the District, and authorizing the establishment of an industrial development fund within the meaning of the Act; and WHEREAS, on September 9, 2002, the Indiana State Budget Agency (the "Agency") notified the City of South Bend, Indiana (the "City") that the Agency approved the designation of the District; and WHEREAS, pursuant to the Act, the District may capture incremental growth in state income and gross retail taxes ("CRED Revenues") for a period of up to fifteen years from its first allocation of CRED Revenues; and WHEREAS, the City has submitted an application to the Department of Housing and Urban Development ("HUD") for a Section 108 Loan Guarantee (the "Section 108 Loan") in the amount of Eleven Million Nine Hundred Eighty Thousand Dollars ($11,980,000), the proceeds of which are to be used for the acquisition, demolition, remediation and redevelopment of property blighted structures and property located in the area commonly known as the Studebaker/Oliver Project Area in the District (the "Project"); and WHEREAS, HUD has approved the City's application for the Section 108 Loan for the Project; and WHEREAS, the City will issue its notes to evidence the Section 108 Loan pursuant to a Financing Agreement with HUD by which City has agreed to pledge various revenues of the City, including available CRED Revenues of the District, for the payment of the Section 108 Loan; and + WHEREAS, in order to provide for the Section 108 Loan for the Project, the Commission desires to pledge CRED Revenues to the payment of the Loan; and WHEREAS, the Common Council of the City (the "Common Council") is expected to adopt an ordinance (the "Ordinance") to authorize the issuance of a note of the City to evidence the Section 108 Loan payable from CRED revenues and other revenues available to the City; BDDBOI 4218507v1 '~---Q RESOLUTION N0.8-2009 A RESOLUTION OF THE SOUTH BEND ADVISORY COMMISSION ON INDUSTRIAL DEVELOPMENT MAKING RECOMMENDATIONS TO THE SOUTH BEND COMMON COUNCIL ON THE EXPENDITURE OF INCOME TAX AND GROSS RETAIL INCREMENTAL AMOUNTS RECEIVED FROM THE STATE OF INDIANA FOR FISCAL YEAR 2008 AND 2009 WHEREAS, on June 13, 2002 the South Bend Advisory Commission on Industrial Development adopted Resolution No. 1-2002 designating a Community Revitalization Enhancement District known as the Studebaker/Oliver CRED area; and WHEREAS, on September 9, 2002 the Indiana State Budget Agency notified the City of South Bend that they had reviewed the supporting documentation and approved the designated CRED district; and WHEREAS, Indiana Code 36-7-13 allows CRED districts to capture incremental growth in state income and gross retail taxes for a period up to fifteen years; and WHEREAS, the State Budget Agency has calculated the incremental growth for state fiscal year 2008 and has distributed $955,315.00 as the amount allowed by State statue to the City of South Bend; and WHEREAS, the City of South Bend anticipates that the State Budget Agency will calculate the incremental growth for state fiscal year 2009 and will distribute an amount not to exceed $1,000,000 which is the maximum amount allowed by State statue to the City of South Bend later in 2009; and WHEREAS, Indiana Code Section 36-7-13-5(c) requires the South Bend Advisory Commission on Industrial Development to recommend in writing to the South Bend Common Council any expenditure of these funds; NOW THEREFORE, be it RESOLVED by the South Bend Advisory Commission on Industrial Development as follows: Section I. It is the recommendation of the South Bend Advisory Commission on Industrial Development that the $955,315.00 received from the State of Indiana for incremental growth in income tax and gross retail tax in the Studebaker/Oliver CRED area for fiscal year 2008 be appropriated and spent for the repayment of the Section 108 Loan for the Studebaker/Oliver Project as pledged by Resolution No. 3-2005. Section II. The South Bend Advisory Commission on Industrial Development recommends that all incremental growth income tax and gross retail tax funds received and allowed by the State in the Studebaker/Oliver CRED area for fiscal year 2009 up to the statutory maximum of $1,000,000 be appropriated and spent for the repayment of the Section ] 08 Loan for the Studebaker/Oliver Project as pledged by Resolution No. 3-2005. .1 Section III. A copy of this Resolution shall be sent to the South Bend Common Council. The South Bend Advisory Commission on Industria~l/Development By: C~/~ _ ~~C~ Vivian G. Sallie, Chaii7nan Dated: June 30, 2009 Atte NOW THEREFORE, BE IT RESOLVED by the South Bend Advisory Commission on Industrial Development as follows: Sect=• The Commission hereby confirms, ratifies and approves the Financing Agreement between the City and HUD providing for the pledge of various revenues, including available CRED Revenues for the payment of the Section 108 Loan. Section 2. The Commission hereby pledges available CRED Revenues received by the City from the Agency for the District for the payment of the Section 108 Loan for the Project. The pledge of CRED Revenues shall continue during the period the Section 108 Loan is outstanding or until the District expires in accordance with Act in the event the Section 108 Loan remains outstanding upon such expiration; provided, however, such pledge may be released in the event the City identifies other revenues to pay the amounts required under the Section 108 Loan. Section 3. The foregoing pledge shall continue irrevocably during the period the Section 108 Loan remains outstanding, subject to the provisions of the preceding paragraph. Sect=• Upon the Common Council's adoption of the Ordinance, this Resolution and the Ordinance shall constitute a written agreement between the Commission and the City to provide for the Project and the financing thereof, pursuant to Indiana Code § 36-7-13-21. Sect=. This Resolution shall be effective upon its adoption by the Commission. ADOPTED AND APPROVED at a meeting of the South Bend Advisory Co~l~mission on Industrial Development held on the 8th day of November, 2005. SOUTH BEND ADVISORY COMMISSION ON INDUSTRIAL DEVELOPMENT ATTEST: ~~ -; ~,. ~. , ~ Secretary Its: ''" ~~::~F</;~. ~ r,. BUDB01 4218507v I -2- 1200 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/235-9371 Fax 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~L ECONOMIC DEVELOPMENT JEFFREY V GIBNEY EXECUTIVE DIRECTOR June l6, 2009 South Bend Common Council Fourth Floor Council Chambers 227 W. Jefferson Boulevard South Bend, IN 46601 Dear Council Members: The attached bill for your consideration and approval will appropriate $955,315 from the Industrial Development Fund, Fund 434, for repayment of the Section 108 Loan for the Studebaker/Oliver Project. As required by Indiana Code 36-7-13-5, the Council may not conduct any business requiring expenditures from Fund 434 without the approval, in writing, of a majority of the members of the South Bend Advisory Commission on Industrial Development. On November 8, 2005 the Advisory Commission on Industrial Development adopted Resolution #3-2005 pledging all CRED revenues for the payment of the Section 108 Loan for the Studebaker/Oliver Project. Ann Kolata or I will attend the Council meeting when the ordinance is considered. Contact me at 235-9330 or Ann at 235-9374 if you have any questions. Sincerely, ~ ~ (z` lizabeth Leonard Director, Financial & Program Management ~tltrt~ SCI (;i~'1`~'~ ~~` ~~ ,1~N ~ 7 ?009 ~e,trt voos~oE COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELIZABETH LEONARD `~~ FAX: 574/235-9697 574/235-9371 lJ"i