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SPECIAL MEETING NOVEMBER 30, 2010 <br /> <br /> <br /> <br />dropped in it’s placement due to attendance in games, some of that has been a decrease in <br />attendance here but has been an increase in some other facilities as communities have <br />built and upgrades their facilities. The improvements will also make the facility more <br />useful for community events and see the Cove as a park in the community that can be <br />used as a facility other than when the 70 Silverhawks games are played there. This <br />investment compliments existing downtown development plans and provides an <br />opportunity to stimulate private investment around the cove and compliments investment <br />that they are making in Ignition Park just a few blocks to the South and well as the great <br />investment of the Kroc Center just west of the stadium. He stated that he believes this is <br />an appropriate investment and what they are asking in this bill is to approve the issuance <br />of 5 million dollars in Recovery Act Bonds that would be repaid by Professional Sports <br />Development Revenues. These revenues are a collection of sales taxes, income taxes, <br />that otherwise would go to the State. The City of South Bend was given the authority to <br />create the Professional Sports Development District because we have a professional team <br />that was the key criteria in the State Legislation that allowed capture of these revenues <br />that would have otherwise gone to the State of Indiana. He reiterated that he feels it is an <br />appropriate source of revenue to pay off these bonds. To reinvest in the facility that helps <br />to generate these dollars and makes those improvements. He asked the Council for their <br />favorable consideration. Mayor Luecke noted that the Professional Sports Development <br />Area has a sunset provision. The sunset provision is 2027 when the City will stop <br />collecting revenues from the Professional Sports Development Area and actually there is <br />an early time frame that those dollars are State Revenue Sources will stop being collected <br />and stated that is 2018, however, they have worked with their bond advisor and will look <br />at a shorter term of the bond that would make a final payment on the bond in 2019 and <br />believe that they have sufficient revenues with some reserves that they have on hand in <br />the fund already and then with revenue stream over that period of time to be able to make <br />those payments and still have some reserves left in that fund that could be used for either <br />additional work at the Cove or other facilities. Mayor Luecke thanked the Council again <br />and asked for their favorable consideration. <br /> <br />Councilmember Rouse questioned why that the 5 million dollars is not mentioned in the <br />title of the Ordinance. <br /> <br />Mayor Luecke advised that it is a bond authorized by the Recovery Act that allows <br />municipalities to sell taxable bonds and there is a rebate on the interest that the City pays <br />a 40-45 percent rebate that it pays on the interest so that in affect reduces the bonds costs. <br /> <br />Councilmember Rouse stated that it is not a Redevelopment District Revenue Bond, it a <br />Federal Tax Exempt Stimulus Bond. <br /> <br />th <br />Gregg Zientara, City Controller, 12 Floor County-City Building, 227 W. Jefferson <br />Blvd., South Bend, Indiana, advised that technically it is a Redevelopment Authority <br />Revenue Bond. That is the legal description of it, that’s how it will be marketed, that’s <br />how it will be issued. The previous mention as the Mayor stated is that it is a recovery <br />zone bond that has a tax rebate from the Federal Government and that’s how it is defined. <br /> <br />Councilmember Rouse stated that in Mr. Zientara’s letter that was not a correct <br />description. <br /> <br />Mr. Zientara stated that he had made an error. <br /> <br />This being the time heretofore set for the Public Hearing on the above bill, proponents <br />and opponents were given an opportunity to be heard. <br /> <br />The following individuals spoke in favor of this bill: <br /> <br />Joe Kernan, 114 E. Pokagon, South Bend, Indiana, stated that the Silverhawks do have an <br />economic impact in South Bend. There are jobs that are created and at the end of the <br />season they had ended up with approximately 250 people on the payroll. He stated that <br />yes most of those jobs are seasonal but the people that have those jobs need those jobs <br />and they are important jobs. They supplement their incomes and help support their <br /> 13 <br /> <br />