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South Bend Redevelopment Commission <br />Regular Meeting — October 17, 2003 <br />6. NEW BUSINESS <br />A. South Bend Central Development Area <br />(5) continued... <br />with regard to the additional appropriation <br />and that is the purpose for the public hearing <br />today. The term of the bonds is twenty (20) <br />years. As mentioned previously, there are <br />various redevelopment projects and the <br />refunding of the Authority bonds. The <br />outstanding principle on the Authority bonds <br />is approximately $1,700,000. The bonds are <br />payable solely from TIF revenues in the <br />allocation area. There will be no other taxes <br />pledged or other sources of revenue pledged <br />to the bonds. <br />The bonds are anticipated to be sold to the <br />Indiana Bond Bank. The Indiana Bond <br />Bank functions in a capacity of purchasing <br />the bonds of the Redevelopment <br />Commission and turning around and issuing <br />bonds of its own. The advantage of being in <br />a bond bank is their credit backing on these <br />bonds. Also, the redevelopment Airport <br />bonds are anticipated to be purchased by the <br />Indiana Bond Bank as part of the same <br />transaction. They will be issuing, as one <br />transaction, bonds for this issue and the <br />bonds for the Airport as well. <br />Due to the Bond Bank's credit backing, a <br />more favorable interest rate will be acquired <br />on the bonds, partly because bond insurance <br />is more readily available and will allow us to <br />get the lower rate. Again, this will all be <br />accomplished without having to pledge <br />anything in addition to the TIF revenues; <br />