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South Bend ede ve <br />Special Meeting <br />3. New Bus ness <br />a. Co ssi <br />No. 752 <br />747 <br />lopment Commission <br />- November 18, 1985 <br />1 requested for Resolution <br />action 6 of Resolution No. <br />Mr. Hunt noted that Resolution No. 752 amends <br />the Tax Increment Financing Bond resolution <br />that was previously passed by the Commission. <br />There is a need to amend the resolution to <br />bri g it in line with the bond insurance <br />co y's request relating to Section 6 <br />governing the issuance of other TIF bonds <br />(parity bonds). Once the resolution is <br />amended, insurance will be in place for the <br />Mr. Hill explained that Section 6 deals with <br />provisions referring to parity bonds or <br />additional bond issues. The primary impact of <br />the modification is to provide for additional <br />coverage meaning that the increment has to be <br />at a certain level before additional bonds can <br />be issued. It also tightens up the <br />certification process whereby there would be <br />an independent certification process of the <br />existing increment at that time. Essentially <br />this, was language that was negotiated, and a <br />coimLitment was received from AMBAC Indemnity <br />Co ration that with these modifications the <br />bond issue would be fully insurable. <br />Mr. Hill further explained that, during the <br />terni that the bonds are outstanding, <br />Redevelopment can expect to have a far more <br />favorable interest rate due to the fact that <br />with bond insurance there is an automatic AAA <br />rating. That rating is very significant in <br />lig t of this being the first Tax Incremental <br />issue in the State of Indiana. The benefit to <br />the City and the Commission is that the bids <br />will be at a much more competitive interest <br />rat than would happen without bond insurance <br />and ithout the AAA rating. <br />The <br />recognized Mayor Roger Parent. <br />-2- <br />