10071-11 Appropriation- $995,423 within Professional Sports

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CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR DEPARTMENT OF ADMINISTRATION & FINANCE GREGG D. ZIENTARA CONTROLLER January 5, 2011 Mr. Derek Dieter President, South Bend Common Council 4th Floor, County-City Building South Bend, IN 46601 RE: Professional Sports Development Fund - 2011 Appropriation Ordinance Dear President Dieter: As you know, the 2011 budget passed by the South Bend Common Council on October 25, 2010 did not include an appropriation in the Professional Sports Development Fund No. 377 ("PSDA Fund"). As more information is now known concerning the status of the College Football Hall of Fame for 2011, and with the recent Common Council approval of Coveleski Stadium Revenue bonds with repayment from PSDA revenue, it is now appropriate to establish the PSDA Fund budget for 2011. The proposed 2011 PSDA Fund budget consists of the following expenditures: • $500,000 payment to the College Football Hall of Fame for operating expenses. This transfer is funded by apass-through of hotel/motel tax monies received from St. Joseph County in the amount of $494,325 and accumulated interest in the PSDA Fund in the amount of $5,675. The amounts of hotel/motel taxes paid to the College Football Hall of Fame were $530,137 in 2009 and $521,800 in 2010. The payments to the College Football Hall of Fame will be made on a pro rata, monthly basis while the facility remains open and in operation. • $100,000 transfer to the Century Center capital account for capital expenses. This amount is consistent with prior years and is scheduled to be transferred in June, 2011. These funds are maintained in a separate Century Center capital bank account and all capital expenditures are approved by the President of the Century Center Board of Managers and the City Controller. The 2011 capital budget for Century Center in the amount of $267,000 was approved by the Common Council on October 25, 2010. $395,423 payment for the initial debt service payment due on July 15, 2011 for the 2010 Coveleski Stadium Taxable Revenue Bonds that were approved by the Common Council on November 30, 2010. When the Coveleski Bond ordinance was approved, it was stated that PSDA revenue would be the funding source for repayment of the bonds and a cash projection was prepared demonstrating that sufficient funds would be available in the PSDA Fund to meet all debt service obligations. The final bond payment is due on January 15, 2019. The total proposed PSDA Fund budget for 2011 is $995,423.00 County-City Building 227 West Jefferson Boulevard South Bend, Indiana 46601-1830 0'~. Phone: 574/235-9216 Fax: 574/235-9928 TDD:574/235-5567 ~~