HomeMy WebLinkAboutNo. 2406 appropriating tax increment financing revenues from Allocation Area No. 3 fund for the payment of certain obligations and expenses related to the South Side Developemnt Area Allocation Area No. 3RESOLUTION NO. 2406
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM
ALLOCATION AREA NO. 3 FUND FOR THE PAYMENT OF CERTAIN
OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH SIDE DEVELOPMENT
AREA ALLOCATION AREA NO. 3
WHEREAS, the South Bend Redevelopment Commission (the "Commission"), the
governing body of the Department of Redevelopment of the City of South Bend, Indiana (the "City")
and the City of South Bend, hldiana, Redevelopment District, exists and operates under the
provisions of Indiana Code ~ 36-7-14, as amended (the "Act"); and
WHEREAS, on November 1, 2002, the Commission adopted Resolution No. 1914 (the
"Declaratory Resolution") declaring the South Side Development Area (the "Area") to be an area
needing redevelopment within the meaning of the Act and designated the Area as the South Side
Development Area Allocation Area No. 1 ("Allocation Area No. 1 ") for purposes of tax increment
financing pursuant to the Act; and
WHEREAS, on November 19, 2002, the Area Plan Commission of St. Joseph County ("Plan
Commission")issued its written order approving the Declaratory Resolution by the adoption of Plan
Commission Resolution 142-02, in accordance with Indiana Code ~ 36-7-14-16; and
n ouncil of the Cit a roved the order of
WHEREAS, on November 25, 2002, the Comoro C y pp
the Plan Commission through the adoption of Common Council Resolution No. 3136-02; and
WHEREAS, on December 20, 2002, the Commission held a duly noticed public hearing, in
accordance with Indiana Code ~ 36-7-14-17 and Indiana Code ~ 53-1; and
WHEREAS, following said hearing, the Commission adopted Resolution No. 1928
confirming the Declaratory Resolution; and
WHEREAS, on July 27, 2004, the Commission adopted Resolution 2073 amending the
Declaratory Resolution to create a separate allocation area ("Allocation Area No. 2") within the Area
to allow for certain improvements to occur at the intersection of Ireland and Michigan Streets; and
WHEREAS, on September 13, 2004, the Commission adopted Resolution 2096 (i) amending
the Declaratory Resohtion to create a separate allocation area ("Allocation Area No. 3") within the
Area to allow for a certain redevelopment project located at or about the southeast corner of the
intersection of Ireland Road and Miami Street in the Area and (ii) creating a separate allocation area
fiord ("Allocation Area No. 3 Fund") for the purpose accounting for the tax increment revenues
directly resulting from such improvements ("Project Tax Increment Revenues"); and
WHEREAS, on September 13, 2004, the Commission adopted Resolution No. 2097 (the
"Pledge Resolution") establishing the KSK-Scottsdale Mall, L.P. Project Principal and Interest
Account of the Allocation Area No. 3 Fund (the "Principal and Interest Account") and pledging
Project Tax Increment Revenues for the payment of taxable economic development bonds originally
issued in an aggregate principal amount of Five Million Four Hundred Eight-five Thousand and
00/100 Dollars ($5,485,000.00) (the "EDC Bonds") to provide financing for the redevelopment of
Allocation Area No. 3; and
WHEREAS, the EDC Bonds were issued on April 19, 2005, at fixed interest rates ranging
from six and one-tenth percent (6.10%) to six and three-quarters percent (6.75%) with interest
payable on August 1, 2005, and on each February 1 and August 1 thereafter and maturing on
February 1 in the years 2021 and 2027 with mandatory sinking fund payments due on February 1 in
the years 2008 through and including 2027, a schedule of which debt service payments is as set forth
at Exhibit A; and
WHEREAS, the EDC Bonds are secured by a Trust Indenture dated April 1, 2005 (the
"Indenture") between the City and Wells Fargo Bank, N.A., as Trustee (the "Trustee"); and
WHEREAS, the Pledge Resolution requires that all funds allocated to the Allocation Area
No. 3 Fund be immediately transferred into the Principal and Interest Account and on January 15 and
July 15 of each year all funds necessary to pay (i) the principal of and interest on the EDC Bonds
currently or scheduled to be due and expected to be paid from the Project Tax Increment Revenues
and (ii) to pay any amount of principal on the EDC Bonds which was not previously paid when due
or interest accniing thereon as a result of an insufficiency in Project Tax hncrement Revenues in prior
year or years, be transferred from the Principal and Interest Account and/or the Allocation Area No.
3 Fund to the Trustee to be placed on deposit under the Indenture and only thereafter may excess
Project Tax Increment Revenues in the Principal and Interest Account and/or the Allocation Area
No. 3 Fund be transfen-ed or used for any other purpose set forth in Section 39 of the Act; and
WHEREAS, the Commission desires to authorize all fimds received by the Commission for
Allocation Area No. 3 Fund be transferred to the Principal and Interest Account; and
WHEREAS, the Commission further desires that all fimds on deposit in the Principal and
Interest Accotmt be appropriated for the debt service payments on the EDC Bonds, in accordance
with the Pledge Resolution and Indiana Code ~ 36714-39(b)(2)(A); and
WHEREAS, the proposed appropriations from Allocation Area No. 3 Fund or the Principal
and Interest Accotmt are not for the operating expenses of the Commission; and
WHEREAS, such appropriations are subject to the provisions of Indiana Code § 61.1-18-5;
and
WHEREAS, on November 16, 2007, the Commission adopted Resolution 2396 setting a
public hearing on said appropriations for 10:00 a.m. on December 7, 2007 and authorizing the
Secretary of the Commission to duly publish notice of said hearing, and
WHEREAS, the Secretary of the Commission has caused notice of said hearing on said
appropriations to be published in accordance with law; and
WHEREAS, such public hearing was held at the Commission's meeting at 10:00 a.m. on
December 19, 2007, at 1308 County-City Building, 227 West Jefferson Boulevard, South Bend,
Indiana 46601, at which all taxpayers and interested persons had an opportunity to appear and
express their views as to such additional appropriations; and
WHEREAS, the Commission now desires to approve said appropriations in a total amount
estimated not to exceed Eight Hundred Thousand and 00/100 Dollars ($800,000.00);
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT
COMMISSION AS FOLLOWS:
1. The Commission hereby finds that there are insufficient funds available or provided
for in the existing budget and tax levy which maybe applied to debt service payments on the EDC
Bonds, in accordance with the Pledge Resolution and Indiana Code ~ 36-7-14~39(b)(2)(A).
2. The Commission hereby appropriates that all fiends in Allocation Area No. 3 Fund
and/or the Principal and Interest Account for the debt service payments on the EDC Bonds, in
accordance with the Pledge Resolution and Indiana Code ~ 36-7-1439(b)(2)(A), which amount is
not expected to exceed the amount owed on the Bonds and required to be deposited with the Trustee
under the Pledge Resolution and the Indenture and which amount is not anticipated to exceed Eight
Hundred Thousand and 00/100 Dollars ($800,000.00) this year.
3. Such appropriations shall be in addition to all the appropriations provided for in the
existing budget and levy and shall continue in effect until the completion of the activities described
herein. Any surplus of such proceeds shall be credited to the proper fluid as provided by law.
4. The President and/or the Secretary of the Commission are hereby authorized and
directed to certify a copy of this Resolution together with such other proceedings and actions as may
be necessary to the St. Joseph County Auditor for certification to the Indiana Department of Local
Government Finance for the purpose of obtaining its approval of the appropriations herein made.
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ADOPTED at a regular meeting of the South Bend Redevelopment Commission held on
December 7, 2007 at 1308 County-City Building, 227 W. Jefferson Boulevard, South Bend, Indiana
46601.
ATTEST:
. nntur
Gregory S. Downes, Secretary
Primed Nrnne and Title
SOUTH BEND REDEVELOPMENT
OMMISSION
~: ~ ~~ ~ '~
~~ i°
Signature
1,
Marcia I. Jones, President
Printed Nmne turd Trtle
•
SOLUTION C'~
N0
RE .
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EXHIBIT A
C[TY OF SOUTH BEND
Erskine Village Project
Debt Service and Estimated Covera ge
TIF Revenues Pertod
p~t< Pnnapal Rate Interest Total Fiscal Total AvaJable Coveraec
4/19/2005
8/1/2005 f 99.200.67 f 99.200.67
Z/1/2006 175.060.Op 175.060.00 f 274,260 67 (1)
8/1/2006 175.060.00 175.060.00
2/1/2007 175.060.00 175,060.00 .350,12000 (1)
8/1/2007 175.060.00 175.060.00
2/1/2008 f 145.000.00 btOX 175,06000 320.060.00 495.12000 f 687.18700 1J8.2X
8/ 1/2008 170.637.50 170.677.50
2/1/2009 155,000.00 610X 170.77.50 725.637.50 4%,275.00 684,18700 1]7.9X
8/1/2009 165.910.00 165,910.00
2/1/2010 165,000.00 6lOX 165.910.00 370.910.00 496,fl2000 684.187.00 137.7X
8/1/2010 160.877.50 160.877.50
2/!/2011 175,000.00 6101 160,877.50 375,877.50 0%,755.00 687,18700 177.7X
B/1/2011 155.540.00 ]55.540.00
2/1/2012 185.000.00 bIOX 155.540.00 340,540.00 4%,08000 684.187.00 1779%
8/1/2012 149,897.50 179,997.50
2/1/2013 195.00000 610 149.89750 744,897.50 997,795.00 694.187 DO 1787%
8/1/2(113 147,950.00 143,950.00
2/1/2017 210.00000 610% 14),950.00 357.950.00 497.90000 687,187.00 137.4%
B/1/2014 177.575.00 177.545.00
2/1/2015 220,OW00 610°x, 137,545.00 357,515.00 495.090.00 687,18700 1JflZX
8/ 1/2015 170.875 00 170.835.00
2/ 1/2016 275.000.00 6 10X 1)0.835 00 365.835.00 496.670.00 684,187 00 137 B X
8/1/2016 127,667 50 127,667.50
2/1/2017 250,00000 610% 127,667.50 37].667.50 497,77500 684,187.00 IJ76X
8/1/2017 116.042 50 116,042.50
2/1/2018 265,00000 610= 116.04250 7tl1.04250 497,08500 684,1tl700 IJ76X
8/1/2018 107,960 00 107,960 00
2/ 1/2019 280.000.00 6 10X 107,960 00 3tl7,960 00 495.920 00 684,18700 138 0X
6/1/2019 99.420 00 99A20 00
.. 2/1/2020 300.000.00 610% 99.42000 399AZ0.00 498.87000 684.18700 1772%
8/1/2020 90,27000 90.270 DO
2/1/2021 715,000 00 6 10 ; 90.27D 00 405,270.00 495.57000 687.18700 1 J8 1'~
8/1/2021 80.662 SO 80.662.50
2/1/2022 375.000.00 6751 tl0.662.50 415.662.50 496,32500 687.187.00 1779%
8/1/2022 69.756 25 69,756 25
2/1/2023 360.000.00 675% 69.356.25 129,75625 498,712.50 684,18700 137.2%
8/I/2D23 57.20625 57,20625
2/1/2024 385.000 00 6 75 ~ 57,206 Z5 442,206 25 499,412.50 684,187.00 1 77 0X
8/1/2024 44.21250 44.2(2.50
2/1/2025 410,00(100 6 75 + 44.21250 454,212.50 498,425 0U 681,187 00 177 }X
8/1/2025 30,775 W 70.375 00
2/1/2026 915,000.00 6 75X 70.375 00 465,775.00 495.750 00 687.187 00 138.0%
8/ 1 /2026 15.697-75 15,697.75
2/1/202,' 465,00000 675X 15.69775 480,69375 496.78750 687,187.00 1778%
Total f 5,495.00000 f 5.074,618.17 f 10,559.61817 f 10,559,618.17 f 13,683,74000
Ill Capiphzed (merest
RrvisrJ to Rrfirrt Rrsults of BonA Pnctng