Laserfiche WebLink
South Bend Redevelopment Commission <br />Regular Me ting - July 11, 1986 <br />6. NEW BUSINESS (Cont.) <br />c. c:omtinuea... <br />said that under certain circumstances bonds on <br />parity are of equal standing to the 1985 bonds <br />to be issued by the Redevelopment Commission, <br />if among other things the financial advisor to <br />the Commission, Springstead Inc., could <br />certify that the estimated tax increment would <br />be equal to at least 150% of the principal and <br />interest payments that would be due during the <br />terms of both the 1985 and 1986 bonds. At <br />this time the State Tax Board is in the <br />process of issuing rules pertaining to the <br />calculation and the estimate of the tax <br />increment. Additionally, there is a <br />legislative study committee headed by Lloyd <br />Taylor that is going to be looking at tax <br />incremental bonds in addition to other <br />economic development tools. In normal <br />circumstances the Commission could await the <br />final implementation of the rules that will be <br />promulgated by the State Tax Board, but <br />because of a September lst deadline related to <br />th Federal Tax Reform Act, which might cause <br />tax incremental bonds and other municipal <br />bonds to be taxable. The Commission scheduled <br />th sale and closing on the bond issue prior <br />to the September lst deadline. Upon <br />consultation with Springstead it was decided <br />to reduce the amount of the bond and to file <br />an amended certificate so that irrespective of <br />whatever decisions and determinations were <br />made by the State Tax Board the bond would <br />always meet that 150% coverage allowing the <br />parity bond requirements to continue to be met <br />du ina the life of both the 1985 and the 1986 <br />Mr. Richard Treptow, Springstead Inc., <br />exl)lained the modifications and the financial <br />data that are contained in the amended <br />certificate that will be filed as an exhibit <br />to Resolution No. 779. Mr. Treptow noted that <br />th original projections were based on <br />favorable determinations that would be made at <br />th State level and were done without a lot of <br />th detailed number crunching that would <br />determine what the tax increment revenue is <br />ac Oally going to be based on assessed <br />va uation in place as of March 1, 1986. Two <br />-5- <br />