No. 0829 approving an addendum to the official statement concerning the City of South Bend redevelopment district tax increment revenue bonds of 1988

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SECURITY AND PURPOSE The Bonds do not constitute a corporate obligation or indebtedness of the City, but the same is an obligation of the South Bend Redevelopment District (the "District "), which is a special taxing district having the same boundaries as the City, and is payable solely out of taxes on real property sated in the South Bend Central Allocation Area (South Bend Allocation Area No. IA) (the Allocation Area ") allocated and deposited in the Allocation Area Special Fund (the "Allocation Fund "), pursuant to the provisions of IC 36- 7 -14 -39 and proceeds from the sale or leasing of property in the Allocation Area under I C 36- 7 -14 -22 deposited in the Allocation Fund as required by IC 36 -7- 14-26 (these sources of revenues that will be used for payment of the Bonds shall hereinafter be referred to as the "Tax Increment "). The Bonds are being issued under the provisions of IC 36 -7 -14 in order to provide funds for payment of part of the cost of property acquisition and redevelopment in the Allocation Area. The District has previously issued $4,200,000 Tax Increment Revenue Bonds of 1985 (the "1985 Bonds ") and $1,750,000 Tax Increment Revenue Bonds of 1986 (the "1986 Bonds ") with the 1986 Bonds being on a parity with the 1985 Bonds. Both bond issues remain outstanding in their entirety as of February 2, 1988. The authorizing bond resolutions provide the District the right to issue additional bonds (the "Parity Bonds ") payable from the Tax Increment, ranking on a parity with the 1985 Bonds and the 1986 Bonds. The Commission has approved and confirmed that the conditions precedent required in the 1985 and 1986 bond resolutions pertaining to the issuance of said Parity Bonds have been met and has authorized the issuance of the Bonds described herein. The District reserves the right to authorize and issue additional Parity Bonds, payable from Tax Increment, ranking on a parity with the Bonds, the 1985 Bonds, and the 1986 Bonds, under certain CP nditions as specified in the 1988 bond resolution adopted by the Commission on November 12, 1987. TYPE OF BID A sealed bid for not less than $1,755,000.00 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior to the time set for bid opening, a certified or cashier's check in the amount of $18,000 payable to the order of the South Bend Redevelopment District shall have been filed with the City Controller or with SPRINGSTED Incorporated, the City's Financial Advisor, at the home office of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, (612) 223 -3000. No bid will be considered for which said check has not been filed. The checks of unsuccessful bidders will be returned immediately following the award of the Bonds. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the check of the Purchaser, the amount of which will be deducted at settlement. Bidders for the Bonds shall be required to name the rate or rates of interest which the Bonds are to bear, not exceeding twelve percent (12 %) per annum and such interest rate or rates shal I be in multiples of 1/8 or 1/20 of one percent (I %). Bids specifying more than one interest rate shall also specify the maturities of the Bonds bearing each rate and all Bonds maturing on the same date shall bear the some rate. No rate for any maturity shall be more than one percent (1%) lower than any prior rate. No conditional bid will be considered. Although not a term of sale, it is requested that each bid show the net dollar interest cost to final maturity and the net effective average terest rate on the entire Issue. MUNICIPAL BOND INSURANCE An application for a municipal bond guaranty insurance policy for this issue has been made. If a bond guaranty insurance policy is issued, it will unconditionally and irrevocably guarantee payment of the principal of and interest on the Bonds. The premium for such policy, if issued, will be paid by the District. No such municipal bond guaranty issuance has yet been obtained for the Bonds. Bidders are advised to contact the City Controller at Room 1400, County -City Building, 227 West Jefferson