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South Bend F <br />Rescheduled <br />mnent Cmimi.ssion <br />Meeting - April 6, 1990 <br />6. NEW BUSM 5 (Cont.) <br />• r • �llj �1i� t�� <br />Mrs. I Kolata read a letter frain Mayor <br />Kexrtin into the record: <br />April 6, 1990 <br />Mr. F. Jay Nimtz, Esq. <br />President <br />Souti Bend Redevelopment Commission <br />1200 County-City Building <br />Souti Bend, Indiana 46601 <br />Dears Jay: <br />Presented to the Redevelopment Commission <br />todaf for its approval is the final bond <br />resolution for the Studebaker Corridor <br />Bond Issue. The recently received Order <br />of Approval of the State Tax Board makes <br />it p ssible to now take this final action <br />on t e bond issue and begin the process <br />of r vitalizing the Studebaker Corridor <br />Area. <br />This resolution includes the refinement <br />of the preliminary structuring of the <br />bond issue that has achieved two <br />significant goals-- minimizing the impact <br />on the real property tax rate and <br />reducing interest costs. <br />In setting the repayment schedule for the <br />bonds, we have considered the repayment <br />schedule of other general obligation <br />financings of the City. Reduced <br />principle amounts will be paid on the <br />bond until those obligations are paid <br />off. At that time, principle payments <br />will be accelerated. In addition to <br />minimizing the impact on our property tax <br />rate, this repayment will permit an <br />earlier payoff of the Studebaker Corridor <br />Bond, saving over $900,000 of interest <br />when compared to the preliminary bond <br />payoff plan. We anticipate that this <br />repa ment plan will be viewed favorably <br />by t e rating agencies. <br />