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HomeMy WebLinkAboutNo. 2434 establishing certain funds and accounts in connection with the Lease dated as of October 15, 2007 between the South Bend Redevelopment Commission and the South Bend Redevelopment Authroity for the Eddy Street Commons projectRESOLUTION N0.2434 RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION ESTABLISHING CERTAIN FUNDS ANll ACCOUNTS IN CONNECTION WITH THE LEASE DATED AS OF OCTOBER 15, 2007, BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY FOR THE EDDY STREET COMMONS 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 instrumentality of the City of South Bend, Indiana (the "City") to finance local public improvements for lease to the South Bend Redevelopment Commission (the "Commission"); and WHEREAS, the Commission has adopted various resolutions (i) declaring certain real estate in the Redevelopment District of the City of South Bend, Indiana, 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" ("Allocation Area No. 2"); and [3DDB01 5080477v1 t 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 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 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, Georgians, 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 geotechnieal testing; and related improvements (collectively, the "Project"); and to pay the costs of issuance of the Bonds; and WHEREAS, the Authority has entered into a lease between the Authority and the Commission dated as of October 15, 2007 (the "Lease"), which Lease was heretofore approved by this Commission, and pursuant to which the Authority shall lease to the Commission certain local public improvements including, without limitation, the Project; and BDDBOI 5080477v1 ' 2 WHEREAS, the Commission anticipates it will consider for approval an addendum to the Lease (the "Addendum") following the sale of the Bonds to reflect lower rental payments under the Lease; and WHEREAS, the Commission desires to establish certain funds and accounts for the payment of the rentals owed by the Commission pursuant to said Lease (the "Pledge Resolution"); NOW, THEREFORE, BE IT RESOLVED, by the South Bend Redevelopment Commission as follows: Section 1. The Commission hereby creates and establishes an Eddy Street Commons Principal and hlterest Account (the "Principal and Interest Account") in the Redevelopment District Bond Fund previously created by the Commission to pay the rentals • owed by the Commission pursuant to the Lease as the same may be amended by the Addendum. Section 2. The Commission hereby covenants to levy in each calendar year (the "Levy Year") beginning in the year prior to the first calendar year in which the Commission is required to pay rentals under the Lease, a special tax upon all of the taxable property in the Redevelopment District of the City of South Bend, Indiana, in a total amount sufficient, together with all other funds then currently on deposit in the Principal and Interest Account (other than such special taxes) as of August 1 of the year prior to the Levy Year to pay all lease rental payments payable under the Lease in the twelve (12) month period beginning on July I of the Levy Year. Such taxes shall be deposited in the Principal and Interest Account and such taxes and any other funds deposited into the Principal and Interest Account shall be irrevocably pledged for the purposes set forth in this Resolution. C~ BDDBOI 5080477v l " 3 " Section 3. This Resolution shall be in full force and effect after its adoption by the Commission. • • ****** BDDBOI 5080477v1 - 4 • ADOPTED at a meeting of the South Bend Redevelopment Commission held on • • Pebruaiy 6, 2008. ATTEST: g S. Downes, Se tary f~DDI301 5080477v 1 SOUTH BEND REDEVELOPMENT COMMISSION Marcia L Jones, Presis~~nt _5_