1993-07-15 Resolution 79 - Laserfiche WebLink

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0 I~'~ SOUTH BEND (INDIANA) REDEVELOPMENT AUTHORITY GENERAL COMMENTS The Redevelopment Authority of the City of South Bend, Indiana (the "Authority") is issuing $4,905,000 of Taxable Lease Rental Acquisition and Refunding Revenue Bonds of 1993 (South Bend Airport Economic Development Area Public Improvement Project) (the "Taxable 1993 Bonds") to provide for the refunding of the $4,200,000 Taxable Lease Rental Revenue Bonds (of 1991) (Airport Economic Development Area Public Improvement Project) (the "Taxable 1991 Bonds"), to pay issuance costs, and to pay the cost of acquiring certain land and .constructing certain public improvements (the "Improvements") in the South Bend Airport Economic Development Area (the "EDA"). A Lease dated as of August 1, 1990, as amended by an Addendum to Lease dated January 29, 1991, and as further amended by an Addendum to Lease after the sale of the Taxable 1993 Bonds (collectively referred to as the "Lease"), between the Authority and the South Bend Redevelopment Commission (the "Commission"), provides, among other things, for the Commission to make semi-annual lease payments (the "Lease Rental") to the Authority in amounts that will enable the Authority to pay the principal, interest and fiscal agency fees on the Taxable 1993 Bonds. Funds for the Lease Rental will be provided from ad valorem property taxes levied on all taxable property in the South Bend Redevelopment District (the "District"), which has the same taxing boundaries as the City of South Bend. However, the Commission intends to use Tax Increment to the extent such revenue is available, (as further described in this Report) to pay the Lease Rental. Each year when the City prepares its budget, the Commission shall levy a special benefits tax on the District in a total amount sufficient, together with all other funds (from sources other than special taxes, ie. Tax Increment) deposited previously, or anticipated to be deposited, in the Commission's Airport Economic Development Area Taxable Public Improvement Project Principal and Interest Account (the "Principal and Interest Account"), to pay all Lease Rental due in the 12-month period beginning on July 1 of the following calendar year (the "Lease Rental Requirement"). Additional information concerning these matters is provided in the Final Official Statement dated July 9, 1993, and the Appendices included therein. Background Information Concerning the EDA Improvements and Financing The Commission designated the EDA to be an allocation area for the purpose of capturing incremental property tax revenues ("Tax Increment" as further described herein) to pay Lease Rental on bonds issued to finance certain improvements (the "Project") in or serving the EDA. The EDA encompasses existing industrial parks and commercial businesses as well as hundreds of acres of developable land surrounding the Michiana Regional Airport and the Indiana Toll Road. The Project, which includes land acquisition and infrastructure improvements, together with a public golf course, are intended to stimulate additional business development in the EDA. The Authority issued $4,200,000 of Taxable Lease Rental Revenue Bonds (defined previously as the "Taxable 1991 Bonds") (which are being refunded with the Taxable 1993 Bonds) and $2,355,000 of (Tax-Exempt) Lease Rental Revenue Bonds (the "Tax-Exempt 1991 Bonds") in February and March of 1991, respectively, to finance the Project; and the Authority issued $5,680,000 Lease Rental Bonds of 1992 (the "1992 Golf Bonds") in October of 1992 to finance the golf course project. Although all three bond issues are supported with the special benefits tax, the Commission intends to use Tax Increment as the primary source of revenue to pay Lease Rental on the Taxable 1993 Bonds and on the Tax-Exempt 1991 Bonds; and to use golf course revenues as the primary source of revenue for the 1992 Golf Bonds, with Tax Increment as aback-up (to avoid having to levy a special benefits tax) if golf revenues are insufficient. (Continued on next page) B-2