HomeMy WebLinkAboutNo. 2306 appropriating tax increment financing revenues from Allocation Area No. 1 Fund for the payment of certain obligations and expenses related to the SSDA Allocation Area No. 3• RESOLUTION NO. 2306
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, 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 § 367-14-16; 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 § 36-7-1417 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 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
]/:IWPDAT~11Rederelopment ConunissionlResolutionslRES3306 SSDAsi{pp(emental_3 2007.doc
• "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 Project 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 § 36-714-39(b)(2)(A); 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
WHEREAS, such appropriations are subject to the provisions of Indiana Code § 6-1.1-18-5;
and
WHEREAS, on January 5, 2007, the Commission adopted Resolution 2306 setting a public
hearing on said appropriations for 10:00 a.m. on January 19, 2007 and authorizing the Secretary of
i
H: IWPDATAIRedeve/opment CommissionlResolutionslRES2306 SSDAsnpplementnl 3 2007.doc
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
January 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 Five Hundred Sixty Thousand Thirty-seven Dollars ($560,037);
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 § 36-7-1439(b)(2)(A).
2. The Commission hereby appropriates that all funds 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 § 36-7-14-39(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 Five
Hundred Sixty Thousand Thirty-seven Dollars ($560,037) 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 fund 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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• > aoo~.tto~
H. IWPDATAIRedevelopment ConunissronlResole~tionslRES_306 SSDAs~rpplen~entnl 3
. ADOPTED at a regular meeting of the South Bend Redevelopment Commission held on
January 19, 2007 at 1308 County-City Building, 227 W. Jefferson Boulevard, South Bend, Indiana
46601.
ATTEST:
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SOUTH BEND REDEVELOPMENT
OMMISSION ,'
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Signature
Printed Name and Title
H:IWPDATAIRedenelopment ConunissionlReso/utionslRES2306 SSDAsupplen2ental 3 2007.doc
RESOLUTION N0. 2306
EXHIBIT °"A`°
CITY OF SOUTH BEND
Erskine Village Project
Debt Service and Estimated Cove rage
TIF Revenues Penod
p_1P Principal Rate Interest Total Fiscal Total Available Covera¢c
4/19/2005
8/1/2005 f 99,200.67 $ 99.200.67
2/1/2006 175,060.00 175,060.00 $ 274,260.67 (1)
8/ 1 / 2006 175,060.00 175,060.00
2/1/2007 175.060.00 175,060.00 350,120 00 (1)
8/1/2007 175,060.00 175,060.00
2/1/2008 f 145.000.00 6.10% 175,06000 320,060.00 495,120.00 $ 684,167.00 138.2%
8/1/2008 170,637.50 170,637.50
2/1/2009 155,000.00 6.10% 170,637.50 325,637.50 4%,275.00 684,187.00 137.9%
8/1/2009 165,910.00 165.910.00
2/1/2010 ]65,000.00 6.10% 165,910.00 330.910.00 496,82000 684,]67.00 137.7%
8/1/2070 160,877.50 160,877.50
2/1/2011 175,000.00 6.10% 160,877.50 335,877.50 496,755.00 684,187.00 137.7X
8/1/2011 155,540.00 155,540.00
2/1/2012 185,000.00 6.10% 155,540.00 340,540.00 496,080.00 684,187.00 137.9%
8/1/2012 149,897.50 149,897.50
2/1/2013 195.000.00 6.10% 149,89750 344,897.50 494,795.00 684,187.00 138.3%
8/1/2013 143,950.00 143,950.00
2/1/2014 210.00000 6.10% 143,950.00 353,950.00 497,900.00 684,187.00 t37.4%
8/1/2014 137.545.00 137,545.00
• 2/1/2015 220,000.00 610% 137,545.00 357,545.00 495,090.00 684,18700 138.2%
8/1/2015 130,835.00 130,835.00
2/1/2016 235,000.00 6.10% 130.835.00 365,835.00 496,670.00 684,187.00 137.8%
8/1/2016 123,667.50 123,667.50
2/1/2017 250,000.00 610% 123,667.50 373,667.50 497,335.00 684,187.00 137.6%
8/ 1 / 2017 116.042.50 116,042.50
2/1/2018 265,000.00 6.109;, 116,042.50 381,042.50 497,08500 684,18200 137.6%
8/ 1 / 2018 107,%0.00 107,960.00
2/1/2019 280,000.00 6.10% 107,960.00 387,960.00 495,920.00 684,187.00 138.0%
8/1/2019 99,420.00 99,420.00
2/1/2020 300,000.00 610% 99,420.00 J99AZ0.00 498,840.00 684,187.00 137.2%
8/1/2020 90,270 00 90.270.00
2/1/2021 315,000 00 6 10"0 90,270.00 405,270.00 495.540.00 684.18700 ll6 1 %
8/1/2021 80,662.50 80.662.50
2/1/2022 335,000.00 6.75"n tl0,662.50 415.662.50 496,32500 68x,187.00 137.9%
8/1/2022 69,356.25 69,356.25
2/1/2073 360,000.00 6.75% 69,356.25 429,356.25 498,712.50 684,167.00 137.2%
8/1/2023 57,206.25 57,206.25
2/1/2024 385.000.00 6 75% 57,206.25 442,206.25 499,412.50 684,187.00 137.0%
s/1/zoz4 4a,zlz so 4a,zlz.so
2/1/2075 410,000.00 6.75°0 44,212.50 454,212.50 498,425 W 684,187.00 137.3%
8/t/2025 30,375.00 30,375.00
2/1/2026 435,000.00 6.75% 70.375.00 465,375.00 495,750.00 684,187.00 178.0%
8/ 1 / 2026 15,693.75 15,693.75
2/1/2027 465,00000 6.75% 15,693.75 480,693.75 496,387.50 684,187.00 07.8%
Total $ 5,485.000.00 $ 5.074,618.17 $ 10,559,618.17 $ ]0,559,618.17 $ 13,683,740.00
(1)CaPt~lized Interest
Bruised to Re/lecf Results o/Bond Pricing