HomeMy WebLinkAboutNo. 2435 regarding reimbursement of certain City of South Bend funds advanced for the Eddy Street Commons project
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RESOLUTION NO. 2435
RESOLUTION OF THE SOUTH BENll REDEVELOPMENT
COMMISSION REGARDING REIMBURSEMENT OF CERTAIN
CITY OF SOUTH BEND FUNDS ADVANCED FOR THE EllDY
STREET COMMONS PROJECT
WHEREAS, the South Bend Redevelopment Commission (the "Commission"),
governing body of the South Bend Department of Redevelopment and the South Bend
Redevelopment District (the "Redevelopment District"), exists and operates under the provisions
of Indiana Code 36-7-14, as amended from time do time; and
WHEREAS, the Commission has adopted various resolutions (i) declaring certain
real estate in the Redevelopment District of the City of South Bend, Indiana (the "City") known
as the Northeast Neighborhood Development Area (the "Area"), to be a redevelopment area
within the meaning of the Act, determining that it would be of public utility and benefit to
redevelop the Area pursuant to a development plan, as amended, and (ii) designating the entire
Area as an allocation area ("Allocation Area No. 1 ") having boundaries as described in
Declaratory Resolution No. 2016, as amended; and
WHEREAS, the Commission has amended this designation so that a portion of
the Area and Allocation Area No. 1 are deemed a housing program named the "Northeast
Neighborhood Development Area Housing Program" and a housing allocation area named the
"Northeast Neighborhood Development Area, Allocation Area #2"; and
WHEREAS, Kite Realty Group, L.P. has proposed a mixed use development
commonly known as the Eddy Street Commons development encompassing approximately
twenty-three (23) acres located in the City of South Bend adjacent to the University of Notre
Dame campus and which mixed use development is proposed to include the following: retail
shops, apartment homes, office space, one full service hotel with conference facilities and three
floors of condominiums, one limited service hotel, condominium homes in four different product
types, open space and a parking garage structure (collectively, the "Development"); and
WHEREAS, the Commission desires to undertake certain local public
improvements in support of the Development in or serving the Area including, without
limitation: 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").
WHEREAS, the South Bend Redevelopment Authority (the "Authority") has been
created pursuant to IC 36-7-14.5 as a separate body, corporate and politic, and as an
[3DDB01 5086072v1
instrumentality of the City to finance local public improvements for lease to the Commission;
and
WHEREAS, to pay for the Project, the Commission has entered into a lease, as
may be amended, between the Commission and the Authority dated as of October 1 S, 2007 (the
"Lease"), which Lease was heretofore approved by this Commission, and pursuant to which the
Commission shall lease from the Authority certain local public improvements including, without
limitation, the Project; and
WHEREAS, the Authority intends to issue bonds in an aggregate principal
amount not to exceed Thirty Six Million and 00/100 Dollars ($36,000,000.00) pursuant to IC 36-
7-14.5-19 to be known as the "South Bend Redevelopment Authority Lease Rental Revenue
Bonds of 2008 (Eddy Street Commons Project)" (the "Bonds"), the proceeds of which are to be
used to pay the expenses relating to the Project and to pay the costs of issuance of the Bonds; and
WHEREAS, the Commission shall pay lease rentals from tax increment revenues
collected in the Area, which lease rentals shall be deposited into the Eddy Street Commons
Principal and Interest Account (the "Principal and Interest Account") in the Redevelopment
District Bond Fund and, to the extent the tax increment revenues are insufficient, from a special
tax levy upon all of the taxable property in the Redevelopment District of the City of South
Bend, Indiana, which special tax shall be deposited into the Principal and Interest Account; and
WHEREAS, the City has agreed to advance certain funds for a portion of the
Project from the City's Major Moves Fund (the "Major Moves Fund") in an aggregate amount
not to exceed Five Million Three Hundred Thousand and 00/100 Dollars ($5,300,000.00) and the
City's Sewer Capital Fund (the "Sewer Capital Fund") in an aggregate amount not to exceed One
Million Five Hundred Thousand and 00/100 Dollars ($1,500,000.00), provided, however, that
the aggregate sum of funds that may be advanced will not exceed Six Million Seven Hundred
Twenty-seven Thousand Three Hundred Ninety-seven and 00/100 Dollars ($6,727,397.00); and
WHEREAS, the Commission desires to commit to reimburse the City for
expenditures made by the City for local public improvements in or serving the Area, specifically,
the reimbursement of the fiends advanced by the City fi-om the Major Moves Fund and the Sewer
Capital Fund for a portion of the Project from tax increment finance ("TIF") revenues available
after TIF revenues are deposited into the Principal and Interest Account created for the payment
of lease rentals by the Commission to the Authority pursuant to the Lease (the "Available TIF
Revenues");
NOW, THEREFORE, BE IT RESOLVED, by the South Bend Redevelopment
Commission as follows:
Section 1. The Commission hereby covenants to reimburse the City out of
Available TIF Revenues, for expenditures made by the City for local public improvements in or
serving the Area, specifically for the funds that the City has advanced or will advance from the
Major Moves Fund in an aggregate amount not to exceed Five Million Three Hundred Thousand
and 00/100 Dollars ($5,300,000.00) and the Sewer Capital Fund in an aggregate amount not to
BDDBOI 5086072v I - 2 -
exceed One Million Five Hundred Thousand and 00/100 Dollars ($1,500,000.00), it being
understood that the total aggregate amount that may be advanced shall not to exceed Six Million
Seven Hundred Twenty-Seven Thousand "Three Hundred Ninety-seven and 00/100 Dollars
($6,727,397.00). The Commission hereby covenants to make such reimbursements from
Available TIF Revenues in accordance with the attached Exhibit A.
Section 2. For purposes of this Resolution, Available TIF Revenues shall mean
those tax increment finance revenues from the Area and available for use by the Commission,
which remain after the required deposits have been made into the Principal and Interest Account
to pay the rentals when due under the Lease. It is expected that the tax increment revenues will
be sufficient to: (i) pay the debt service on the Bonds; and (ii) to reimburse the City in
accordance with the schedule attached as Exhibit A, made in conjunction with the tax increment
revenues projection of the financial advisor
Section 3. This Resolution shall be in full force and effect after its adoption by
the Commission.
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BDDB01 5086072x1 - 3 -
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ADOPTED at a meeting of the South Bend Redevelopment Commission held on
February 6, 2008.
SOUTH BEND
u
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ATTEST:
or ownes, Secr ary
BDDBO l 5086072v 1
REDEVELOPMENT COMMISSION
i
Marcia I. Jones, President'
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• EXHIBIT A
City of South Bend
Eddy Street Commons Project
Major Moves Fund 412 & Sewer Capital
Amortization of Loans to Project to be
Repaid from Project TIF Revenue
Prepared 12/31/07
Original Capitalized New
Principal Interest Principal Payment
Principal 6,727,397 1,009,110 7,736,507 $369,632.03
Rate 0.05
Term (Yrs) 15
Payment Interest Principal Balance
Beginning Balance 7,736,507
2/15/2011 0 0 0 7,736,507
8/15/2011 369,632 193,413 176,219 7,560,287
2/15/2012 369,632 189,007 180,625 7,379,662
8/15/2012 369,632 184,492 185,140 7,194,522
2/15/2013 369,632 179,863 189,769 7,004,753
8/15/2013 369,632 175,119 194,513 6,810,240
2/15/2014 369,632 170,256 199,376 6,610,864
8/15/2014 369,632 165,272 204,360 6,406,503
2/15/2015 369,632 160,163 209,469 6,197,034
8/15/2015 369,632 154,926 214,706 5,982,328
2/15/2016 369,632 149,558 220,074 5,762,254
8/15/2016 369,632 144,056 225,576 5,536,678
2/15/2017 369,632 138,417 231,215 5,305,463
8!15/2017 369,632 132,637 236,995 5,068,467
2/15/2018 369,632 126,712 242,920 4,825,547
8/15/2018 369,632 120,639 248,993 4,576,554
2/15/2019 369,632 114,414 255,218 4,321,336
8/15/2019 369,632 108,033 261,599 4,059,737
2/15/2020 369,632 101,493 268,139 3,791,598
8/15/2020 369,632 94,790 274,842 3,516,756
2/15/2021 369,632 87,919 281,713 3,235,043
8/15/2021 369,632 80,876 288,756 2,946,287
2/15/2022 369,632 73,657 295,975 2,650,312
8/15/2022 369,632 66,258 303,374 2,346,938
2/15/2023 369,632 58,673 310,959 2,035,980
8!15/2023 369,632 50,899 318,733 1,717,247
2/15/2024 369,632 42,931 326,701 1,390,546
8/15/2024 369,632 34,764 334,868 1,055,678
2/15/2025 369,632 26,392 343,240 712,438
8/15/2025 369,632 17,811 351,821 360,617
2/15/2026 369,632 9,015 360,617 (0)
Totals 11,088,961 3,352,454 7,736,507