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South Bend Redevelopment Commission <br />Rescheduleq Regular Meeting - December 30, 1987 <br />6. NEW BUSINESS (Cont.) <br />a. Continued... <br />Mr. Wensits asked why such a large <br />po tion of the bond issue is reserved for <br />se icing the issue. Mr. Treptow <br />explained that $175,500 is required to be <br />set aside and invested as protection for <br />the purchaser. This is the debt service <br />reserve. It is not lost money, but will <br />be used to make the last payment. <br />$355,000 is set aside in a debt service <br />account and used to make interest <br />payments on the bonds themselves until <br />tax increment revenue is sufficient to <br />make those payments. Since there is no <br />general obligation backing these bonds, <br />they must be set up as very secure in <br />or *r to be competative. <br />Mr. Wensits inquired about the timing of <br />the first payment on the bonds. Mr. <br />Tre tow responded that semi - annual <br />int rest payments begin August 1, 1988. <br />The first payment on the principle will <br />be 'n 1993. <br />Upo a motion by Mr. Piasecki, seconded COMMISSION APPROVED RESOLUTION NO. 827 <br />by Combs and unanimously carried, the <br />Co 'ssion approved Resolution No. 827. <br />WREN ..V y. .�. <br />Mr. Hun noted that Mrs. Kolata had PROGRESS REPORTS <br />attendel a State Tax Board local hearing <br />on the bond. Approval was granted <br />pending the written approval order from <br />the lo ail property tax control board. <br />The ne4 step on the bond will be the <br />public ale on January 19. <br />Mr. Nimtz announced that the Executive <br />Session held prior to the Regular Meeting <br />will reconvene following the adjournment <br />of the Regular Meeting. <br />-3- <br />