Laserfiche WebLink
Redevelopment Commission Meeting <br />Special Meeting — July 27, 2004 <br />6. NEW BUSINESS (CONT.) <br />C. Commission approval requested for Resolution <br />No. 2074 authorizing the issuance of city of <br />South Bend, Indiana, Redevelopment District <br />adjustable rate demand Tax Increment revenue <br />Bonds and other related matters. <br />Mr. Rompola noted that Resolution No. 2074 is the <br />final bond resolution to the preliminary bond <br />resolution previously approved on July 16. <br />Resolution No. 2074 authorizes the issuance of <br />bonds in a maximum principal amount of $2.8 <br />million. This sum is quite a bit higher than what we <br />expect the final bond amount to be, but we want <br />some flexibility in case the cost goes up before the <br />bonds are sold. The term of the bonds is a <br />maximum of 25 years, consistent with the <br />Development Agreement made with the developer. <br />The maximum interest rate is set at 7 %. The <br />resolution references the Letter of Credit, <br />reimbursement agreement and the obligation of the <br />Commission to reimburse the developer to the <br />extent the TIF revenues are short in the early years. <br />If the developer has to make payments, the <br />Commission will be obligated to reimburse the <br />developer up to a period of 25 years. <br />Mr. Rompola explained that the variable rate bond <br />requires a Letter of Credit which will be issued by <br />First Third Bank. The bank will pay the <br />bondholders each time there is an interest payment <br />due. The Commission will reimburse Fifth Third <br />Bank for those interest payments. <br />Mr. Rompola also noted that Resolution No. 2073 <br />references the Commissions obligation to pay the <br />principle and interest on the Economic <br />Development Commission bonds by defining the <br />flow of funds: first to make payments on the TIF <br />bonds, second to make P & I payments on the EDC <br />c, 3 <br />