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South Bend Redevelopment Commission <br />Regular Meeting –December 3, 2010 <br /> <br /> <br />Mr. Inks noted that the Commission <br />previously approved a revenue bond for the <br />Coveleski project. The source of those <br />payments for that bond was to be the <br />Professional Sports and Convention <br />Development Area revenues, with a backup <br />on that bond of COIT. The intent was to <br />never get to the point of using COIT, but it <br />was a credit enhancement to get a better <br />interest rate when we sold the bonds. We <br />believe the Professional Sports Development <br />Fund (PSD) revenues are sufficient. The <br />Controllers Office has run a cash flow based <br />on cash on hand and what is expected to be <br />received over the remaining period. In the <br />event that reality doesn’t follow projection, <br />we ask that TIF be pledged as a source of <br />repayment to provide an additional assurance <br />that COIT would not be used. <br /> <br />Mr. Varner noted that the PSD funds are <br />pledged to the National Football Foundation <br />(NFF) through a certain period of time. He <br />asked if staff was suggesting that the city <br />might have to pay the NFF for a longer time <br />and the PSD funds wouldn’t be available to <br />pay the Coveleski bond. <br /> <br />Mr. Leone responded that we believe the <br />commitment to the NFF will end after 2011. <br /> <br />Mr. Varner responded that he thought the <br />contract with the NFF was broken when the <br />NFF gave notice that they were leaving. Mr. <br />Inks agreed. Mr. Inks said that is the <br />assumption used in the Controller’s cash <br />flow projection, that there are no remaining <br />obligations on that cash balance. <br /> <br /> <br /> <br /> 18 <br /> <br />