RM 09-13-85 - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Me ting September 13, 1985 6. NEW BUSINESS (Cont.) a. coMinuect .. . Mr. Richard Hill noted that this is a co tinuation of the bond process. He stated that it should be a tribute to the Redevelopment Commission that this is the fi st bond of its type in the State of Indiana. The legal staff feels there are a nunber of other cities around the State that are waiting for South Bend to complete the process, and they already have plans for the Use of this type of financing in their co unities. Mr. Hill further stated this is a pioneering effort that has resulted from about five or six years of continuous work on thE part of the Redevelopment Commission. Mr.1 Nimtz noted for the record the corqplementary editorial from the South Bend Tr�bune concerning Tax Increment Financing. Chair opened the public hearing for any ents or discussion from the public. Mr. Steve Luecke asked about the cost of the TC parking facility and if the lease payments wo ld go back toward reducing the bond. Mr. Hunt responded that the facility would cost approximately $1,075,000 and the lease pa ents would go back toward reducing the Mr Luecke asked if this was the only Tax Fi . ance bond that is available or can this co tinue to be done in the future. Mr. Hunt stated that Redevelopment does have thE ability to issue Tax Increment Financing bonds, but there are some very practical market issues that will limit that. There are some restrictions that will be placed in the bo d documents including a very strict debt co eraae ratio. Mr. Hill indicated that there are protections designed to protect the purchasers of these bo ds so that until a certain coverage ratio is met additional bonds cannot be issued. This Resolution would permit, assuming that -5-