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b <br />BAKER & DANIELS <br />EST. 1863 <br />FIRST BANK BUILDING • 205 W. JEFFERSON BOULEVARD, SUITE 250 • SOUTH BEND, INDIANA 46601 • (219) 234 -4149 • FAX (219) 239 -1900 • www.bakerdaniels.com <br />ANNE E.BRUNEEL <br />DIRECT (219) 239 -1918 <br />e -mail: aebrunee@bakerd.com <br />INDIANAPOLIS <br />FORT WAYNE <br />SOUTH BEND <br />ELKHART <br />WASHINGTON, D.C. <br />QINGDAO, P.R. CHINA <br />MEMORANDUM <br />TO: Bob Case <br />Cheryl A. Greene, Esq. <br />Jon Hunt <br />Donald E. Inks <br />FROM: BAKER & DANIELS <br />-- Anne E. Bruneel, Esq. <br />-- Randolph R. Rompola, Esq. <br />DATE: January 17, 2001 <br />C:00 Py <br />Via Hand Delivery <br />RE: Amending Resolution Relating to TIF Pledge in Support of IDFA Brownfield <br />Loan <br />The Redevelopment Commission had previously adopted a resolution in connection <br />with the proposed Brownfield Loan for the Bosch Project pledging "available tax increment <br />revenues" to the repayment of the IDFA loan and defining "available tax increment revenues" as <br />those tax increment finance ( "TIF ") revenues generated in the Airport Economic Development Area <br />(the "Area ") and remaining and available for use by the Commission on an annual basis after <br />payment of lease rentals to the South Bend Redevelopment Authority. Such payment would be <br />required only if Bosch failed to make the required payments. As you know, each respective issue <br />of Authority lease rental revenue bonds outstanding with respect to the Area is secured by a lease <br />between the Authority and the Commission. In connection with these leases, the Commission has <br />pledged to levy a tax in order to made lease rental payments in the event that there is insufficient <br />revenue otherwise available to the Commission. The Commission avoids that tax annually by <br />applying TIF revenues to the lease payments. As a result of the resolution previously adopted, the <br />pledge of available TIF revenues is junior to those lease payments. <br />IDFA has no" determined that it wants the loan it is making to be on parity with any <br />future TIF revenue bond financings. The Commission does not currently have outstanding TIF <br />revenue bonds in the Airport Area. Although it is unlikely that a TIF revenue bond vv ould be issued <br />by the City while the lease financings are outstanding (given that the TIF revenues which are <br />