RM 04-15-88 - Laserfiche WebLink

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South Bend ' Rescheduled opment Commission r Meeting - April 15, 1988 6. NEW BUSINESS (Cont.) e. continuea... Jose h Streets. The Redevelopment Authority met on April 14th and approved the orm of the lease. She noted that the inancing for the parking garage will be a revenue bond that will be sold by the South Bend Redevelopment Authority. That bond will be retired by lease paym nts that the Commission will make to the Redevelopment Authority. Mrs. Kolata noted that this is a form of the lease. The ease is expected to change before it is finalized. The lease payment desi3nated in the proposed lease, $520,000 per year, is a maximum figure. All Df the assumtions which go into selling the bond are not finalized. Since the amount cannot be raised once the process is begun, the financial cons ltant, Springsted Inc., has conservatively estimated the lease payment at the highest likely figure. Mrs. Kolata noted that this Resolution sets a public hearing on the proposed leasD for April 29 at 10:00 a.m. The prof ct will be bid through the Board of Public Works in May. By the time the lease goes to the Common Council the construction bids will have been received, the determination to make the bond taxable or tax exempt will have been made, and we will have a better idea abou the interest rate of the bonds. The next step will be to seek approval of the inancing from the Local Property Tax Control Board in June. By that time the cons ruction contract will have been away ed. Therefore, the costs will be fina ized as the various steps are Ms. Auburn asked what the proposed annual revenue is. Mrs. Kolata responded that the revenue which will be used to make the lease payments will come from the net operating income of the garage, the One Mich'ana Square UDAG -10-