HomeMy WebLinkAboutNo. 2295 setting a public hearing on the appropriation of tax increment financing revenues from Allocation Area No. 3 Fund for the payment of certain obligations related to the South Side Development Area Allocation Area No. 3 and other related mattersRESOLUTION NO. 2295
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
SETTING A PUBLIC HEARING ON THE APPROPRIATION OF TAX INCREMENT
FINANCING REVENUES FROM ALLOCATION AREA NO. 3 FUND FOR THE
PAYMENT OF CERTAIN OBLIGATIONS RELATED TO THE SOUTH SIDE
DEVELOPMENT AREA ALLOCATION AREA NO. 3 AND OTHER RELATED
MATTERS
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, Indiana, 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
WHEREAS, on November 25, 2002, the Common Council of the City approved the order of
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 § 5-3-1; 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 Resolution 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
fund ("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
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"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 accruing thereon as a result of an insufficiency in Proj ect Tax Increment 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 transferred or used for any other purpose set forth in Section 39 of the Act; and
WHEREAS, the Commission desires to authorize all funds 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 funds on deposit in the Principal and
Interest Account be appropriated for the debt service payments on the EDC Bonds, in accordance
with the Pledge Resolution and Indiana Code § 36-7-14-39(b)(2)(A); and
WHEREAS, such appropriations are subject to the provisions of Indiana Code § 6-1.1-18-5;
and
WHEREAS, the Commission desires to approve said appropriations in a total amount
estimated not to exceed Seven Hundred Fifty Thousand and 00/100 Dollars ($750,000.00); and
WHEREAS, the proposed appropriations from Allocation Area No. 3 Fund or the Principal
and Interest Account are not for the operating expenses of the Commission; and
• NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT
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COMMISSION AS FOLLOWS:
1. The Commission authorizes and directs that all funds on deposit in the Allocation
Area No. 3 Fund or when received for said fund be transferred to the Principal and Interest Account.
2. The Commission desires to approve the use of the funds in Allocation Area No. 3
Fund and/or the Principal and Interest Account in an amount estimated not to exceed Seven Hundred
and Fifty Thousand and 00/100 ($750,000.00) for the debt service payments on the hD h Binodnt is
accordance with the Pledge Resolution and Indiana Code § 36-7-14-39(b)(2)(A),
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.
3. The Secretary of the Commission is hereby authorized and directed to take all
necessary steps to obtain the approval of the expenditures of such funds pursuant to Indiana Code
§ 6-1.1-18-5, including the publication in accordance with Indiana Code § 5-3-I of notice of a
hearing on the appropriation of such funds to be held at 10:00 a.m. on January 19, 2007, at 1308
County-City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601.
ADOPTED at a Regular Meeting of the South Bend Redevelopment Commission held on
January 5, 200 at 1308 County-City Building, 227 West Jefferson Boulevard, South Bend,
Indiana 46601.
SOUTH BEND REDEVELOPMENT
COMMISSIO~ji-~,- i
ATTES
signet
Gregory S Downes, Secretary
Printed Nnnie and Tiile
sign
Karl G Kind, Vi e President
Printed Nmne and Title
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H. I P
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EXHIBIT A
(Debt Service Schedule for EDC Bonds)
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