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South Bend edevelopment Commission <br />Rescheduled Regular Meeting - April 15, 1988 <br />6. NEW BUS$NESS (Cont.) <br />f. Continued... <br />cost is, however, still uncertain. This <br />resolution puts the same procedure in <br />place for starting the refinancing of the <br />stadium. There is a proposed lease <br />between the Redevelopment Commission and <br />the Redevelopment Authority, with a <br />maximum lease payment of $1,000,000 per <br />year. That figure was arrived at by <br />taking the maximum yearly payment which <br />would justify refinancing the stadium. <br />This is a high amount and will be reduced <br />after it is determined whether the bond <br />will be taxable or tax - exempt. It is <br />estimated that the City will be able to <br />sav $200,000 - $900,000 in interest <br />costs by refinancing. <br />Mrs. Kolata noted that all existing <br />agreements with the Park Department and <br />the White Sox team will remain in place. <br />She also noted that this bond has a <br />gen ral obligation backup, and there will <br />continue to be taxes levied to make part <br />of the repayment. The point of the <br />refinancing is, however, to lower the <br />levied amount. <br />Mrs. Kolata noted that this lease will go <br />to the Common Council in early May and to <br />the Local Property Tax Control Board in <br />late May. This resolution sets a public <br />hearing for 10:00 a.m. on April 29th on <br />the terms of the proposed lease. <br />Ms. kuburn asked if Security Pacific <br />needs this action to proceed with <br />refinancing. Mrs. Kolata responded that <br />they do. Ms. Auburn asked if there are <br />agre ents with Security Pacific that <br />they will refinance. Mrs. Kolata <br />res nded that the City has secured the <br />righ to assign the Option to Purchase. <br />The Park Department has assigned that <br />righ to the Redevelopment Authority. <br />The Redevelopment Authority accepted that <br />right at their meeting April 14th. <br />-12- <br />