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South Bend Redevelopment Commission <br />Regular Meeting –November 19, 2010 <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br />B. South Bend Central Development Area <br /> <br />(1) continued… <br /> <br />and 8% interest rate. It is expected the term <br />will be closer to 15 years and the interest rate <br />less than 8%. The resolution authorizes the <br />bonds to be issued as Recovery Zone <br />Economic Development Bonds. The <br />resolution also authorizes their issuance to be <br />as normal tax exempt bonds, if the <br />underwriter feels it is a better deal for the <br />city. The balance of the resolution provides <br />for the payment of the bonds from the <br />Professional Sports Development Fund. To <br />the extent that that those funds are not <br />available, there is a pledge of COIT revenue. <br />Mr. Rompola noted that issuance of the <br />bonds is subject to Council action, scheduled <br />for November 22. <br /> <br />Mr. Varner asked how the credit on interest <br />is handled. Is it cash that comes back to the <br />city or a reduction in the rate? Mr. Rompola <br />responded that it is cash that comes back <br />from the Department of the Treasury. The <br />Registrar and Paying Agent of the bonds <br />would be authorized to file a form prior to <br />every interest payment and the Treasury <br />would cut a check which would go to the <br />Registrar and Paying Agent and would be <br />used to offset the amount needed from the <br />city to make the payment. <br /> <br />Mr. Downes noted that he is one of fifty or so <br />investors in the Silver Hawks. He has been <br />advised by legal counsel that that does not <br />constitute a conflict of interest because the <br />level of his ownership is so small. <br /> <br /> 6 <br /> <br />