10-23-06 Community & Economic Development

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Community and Economic Development Committee 20Q6 South Bend Common Council The October 23, 2006 meeting of the Community and Economic Development Committee of the South Bend Common Council was called to order by its Chairperson, Council Member Roland Kelly at 3:35 p.m. in the Council's Informal Meeting Room. Persons in attendance included Council Members Pfeifer, Kelly, Varner, Kuspa, Kirsits, Rouse, White and Puzzello; Citizen Member Martin Wolfson, Community and Economic Development Director Sharon Kendall, Shawn Peterson, Tom Skarbek, Randolph R. Rompola, Mrs. Kopola, Jamie Loo of the Soufh Bend Tribune and Kathleen Cekanski~- Farrand, Council Attorney. Council Member Kelly noted that the Committee members include Council Members Kuspa, Puzzello, Kirsits, and himself and Professor Marty Wolfson as a citizen member. Bitl No. G8-06 County Economic Development Income Tax Re~er~ue Bonds: Council Member Kelly called for a presentation on Bi[I No. 68-06 which would authorize the issuance and sale of County Economic Development Income Tax Refunding Revenue Bonds of the City of South Bend, Indiana to provide Funds for the Refunding prior to Maturity of Certain Previously Issued and Currently Outstanding County Economic Development Income Tax Revenue Bonds, together with expenses. Shawn Peterson, Assistant City Attorney made the formal presentation along with Tom Skarbek, Director of Budgeting and Financial Reporting. They provided aone-page handout (copy attached) fpm City Controller M. Catherine Fanello noting that the original interest rates on the bond ranged from 4.9% to 5.33%. The proposed interest rates would range from 3.6% to 4.01% with an anticipated net present value savings of $745,000. Refinancing costs are estimated to be $100,000. Mr. Randolph R. Rompola, an attorney with offices at 205 West Jefferson Boulevard in downtown South Bend, noted that there are currently two (2) series of bonds, one that is taxable and one that is tax-exempt. In response #o a question from Dr. Varner, Mr. Rompola stated that the refinancing could not take place until now since they are now °ca[Iable". Mr. Wolfson inquired about the refinancing costs, to which Mr. Peterson stated they cover such items as trustee fees, bond costs, and the financial advisor's fees. Dr. Varner requested that a summary be provided detailing all of the refinancing casts. No one from the public spoke in favor or in opposition to the Bill.