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CITY OF SOUTH BEND
<br />NOTES TO FINANCIAL STATEMENTS
<br />(Continued)
<br />B. Subsequent Events
<br />On February 8, 2006, the City issued $2,440,000 tax incremental financing (TIF) bonds. The pro-
<br />ceeds will be used to finance improvements in the southeast TIF area.
<br />The City has set May 23, 2006, as the date to sell $4,710,000 waterworks revenue bonds. The pro-
<br />ceeds will be used to finance improvements to the water utility.
<br />The City has also set May 23, 2006, as an anticipated bond sale date to sell $7,630,000 sewage
<br />works revenue bonds. The proceeds will be used to finance improvements to the wastewater utility.
<br />This is the first of a series of bonds, with the total not to exceed $56,380,000.
<br />During 2005, the City approved a loan from the U.S. Department of Housing and Urban Development
<br />for $9,180,000 to finance economic development activities. During March 2006, the City received
<br />$500,000 as the first draw on the loan.
<br />Also during 2005, the City approved the sale of real estate commonly called the Studebaker Stamping
<br />Plant, to the South Bend Transportation Company (TRANSPO). TRANSPO paid the City $1,000,000
<br />during 2005 and will pay the $3,000,000 balance to the City after demolition and infrastructure
<br />improvements are completed (estimated late in 2007).
<br />C. Contingent liabilities
<br />Colleae Football Hall of Fame Operations
<br />The City's General Fund has advanced a total of $1,750,000 to the College Football Hall of Fame
<br />Fund in various amounts during the years from 1996 to 1999. The City has always recognized that
<br />these advances would be repaid from excess operating revenues of the Hall of Fame. No payment
<br />schedule has been established. Beginning with 1996, the first full year of operations, through 2000,
<br />the Hall of Fame financial statements show net losses ranging from $521,345 to $1,481,657.
<br />During 2001, the City turned over the operations of the Hall of Fame to the National Football Founda-
<br />tion and College Football Hall of Fame, Inc. (NFF). The interim agreement authorizing the NFF to
<br />operate the Hall of Fame shows that NFF has contributed $1,900,000 to cover operating deficits of the
<br />Hall of Fame during the period prior to December 31, 2000.
<br />The interim agreement is in effect until December 31, 2005. At thattime, the NFF can terminate their
<br />participation in the operations and the City shall reimburse the NFF the full amount of the NFF contri-
<br />butions towards operations. The reimbursement will be made in five annual installments beginning
<br />December 31, 2005. The interim agreement has been extended to May 15, 2006. If the NFF elects to
<br />continue their participation, then the City will resume operating the Hall of Fame as it had done from
<br />1996 to 2001. The $1,900,000 contingent liability to the NFF is not recognized on the financial state-
<br />ments.
<br />Project Future
<br />The Common Council approved Resolution 3037 -02 in which the City pledges support to Project
<br />Future through the year 2006. Project Future promotes the City for economic development purposes.
<br />The City has committed $110,000 for each year from 2003 through 2006 contingent upon the fiscal
<br />condition of the City.
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