HomeMy WebLinkAboutNo. 2392 authorizing execution of a Lease for certain land and public improvements on behalf of the City of South Bend, Indiana, and regarding other related mattersRESOLUTION NO. .,~. ~j`~
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
COMMISSION AUTHORIZING THE EXECUTION OF A
LEASE FOR CERTAIN LAND AND PUBLIC IMPROVEMENTS
ON BEHALF OF THE CITY OF SOUTH BEND, INDIANA,
AND REGARDING OTHER RELATED MATTERS
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 to time (the "Act"); and
WHEREAS, the Commission has adopted various resolutions (i) declaring
certain real estate in the Redevelopment District, 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
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 (the "City") 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"); and
WHEREAS, the Common Council of the City has previously adopted an
ordinance creating the South Bend Redevelopment Authority (the " Authority") pursuant to
BDDBOI 491891 1 v 1
Indiana Code 36-7-14.5 as a separate body, corporate and politic, and as an instrumentality of the
City of South Bend, Indiana, to finance local public improvements for lease to the Commission;
and
WHEREAS, the Authority has adopted a resolution indicating its intent to issue
its lease rental revenue bonds to finance the costs of the acquisition, expansion, renovation and
equipping of the Project and related expenses pursuant to Indiana Code 36-7-14.5-19 and
approving a proposed lease between the Authority and the Commission for the Project (the
"Lease"); and
WHEREAS, on October 9, 2007, the Commission approved the preliminary
plans and specifications and cost estimates and the proposed Lease, determined that the Project
was not a "controlled project" as such term is defined by Indiana Code 6-1.1-20-1.1, scheduled a
public hearing on the Lease to be held on November 2, 2007, at 10:00 a.m. (local time), and
authorized the publication of a notice of public hearing on the Lease pursuant to Indiana Code 5-
3-1; and
WHEREAS, a notice of public hearing on the Lease was published in accordance
with Indiana Code 5-3-1; and
WHEREAS, on this date said public hearing has been held and all interested
parties have been provided the opportunity to be heard at the hearing; and
WHEREAS, the Commission intends to pay rent for the Project to the Authority
(the "Rental Payments"), pursuant to the terms of the Lease, at a rate not to exceed Three Million
Seven Hundred Seventeen Thousand and 00/100 Dollars ($3,717,000.00) per year in semiannual
installments beginning on the day the Project is complete and ready for use, or February 1, 2011,
whichever is later, subject to reduction as set forth in the Lease;
NOW, THEREFORE, BE IT RESOLVEll, by the South Bend Redevelopment
Commission as follows:
1. The President or Vice President and Secretary of this Commission are
hereby authorized and directed, on behalf of the City, to execute, attest, and deliver the Lease in
substantially the form presented at this meeting with such changes in form or substance as the
President or Vice President of this Commission shall approve, such approval to be conclusively
evidenced by the execution thereof.
2. The Rental Payments to be paid by the Commission, pursuant to the terms
of the Lease, at a rate not to exceed Three Million Seven Hundred Seventeen Thousand and
00/100 Dollars ($3,717,000.00) per year in semiannual installments beginning on the day the
Project is completed and ready for use, or February 1, 2011, whichever is later, subject to
reduction as set forth in the Lease, are fair and reasonable, and the use of the Project throughout
the term of the Lease will serve the public purpose of the City and is in the best interests of its
residents.
•
BDDBOI 4918911x1 - 2 -
3. The Secretary of the Commission (the "Secretary") is hereby directed to
transmit to the Common Council a copy of this Resolution and to file with said Common
Council an approving ordinance for the purpose of said Common Council's finding, prior to
execution of the Lease, that the Rental Payments are fair and reasonable and approving the
Lease.
4. The Commission hereby authorizes the President of the Commission to
file or cause to be filed a petition for approval of execution of the Lease with the Department of
Local Government Finance pursuant to Indiana Code 6-1.1-18.5-8.
5. The President, Vice President and Secretary of this Commission, and each
of them, is hereby authorized and directed to take all such further actions and to execute and
attest all such instruments as are desirable to carry out the transactions contemplated by this
Resolution, in such form as the President, Vice President and Secretary executing and attesting
the same shall deem proper, to be evidenced by the execution thereof.
6. This Resolution shall be in full force and effect after its adoption by the
Commission.
•
•
*****
BDDBOI 4918911x1 - 3
ADOPTED at a meeting of the South Bend Redevelopment Commission held on
November 2, 2007, at the Madison Center, Meeting Room West, 403 E. Madison Street, South
Bend, Indiana.
SOUTH BEND
REDEVELOPMENT COMMISSION
~_, ~,~
President , Mar_c~y~` I . Jones
ATTEST:
Downes
•
A
BDDBOI 4918911v1 - 4 -