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South Bend edevelopment commission <br />Rescheduledl Regular Meeting - June 27, 1990 <br />6. NEW BUMESS (Cont.) <br />P. coPtinued... <br />Kolata noted that Resolution <br />No 945 stipulates the following: 1) <br />th bonds must not exceed $950,000; 2) <br />tha interest rate must not exceed 8 %; 3) <br />tha maximum date they may be outstanding <br />is August 1, 1997; and, 4) they may be <br />releemed at any time prior to August 1, <br />1997. The purpose of the bond issue is <br />to pay for a number of up front costs <br />re.Lated to the development we are <br />expecting in the Airport Economic <br />De elopment Area. These expenses would <br />lude title work, survey work, <br />a raisals for right- of-way acquisition, <br />acluisition for right -of -way, and <br />en.jineering design for public <br />uq)rovements. We have requested <br />api.,woximately $12,000,000 from the State <br />of Indiana from the Toll Road and the <br />Transportation Improvement Fund for this <br />prx ject. However, the State has <br />irx1icated that they will not pay for <br />d iqn work. <br />Mrs. Kolata noted that our intention is <br />t1kit, if the project moves along as we <br />it to, we would issue a larger <br />bond for the actual construction of an <br />ini ernal road system (not the same roads <br />we ve asked for Toll Road funds for) and <br />th it bond would pay off this one. She <br />no ed that, except for prepayment from a <br />la,ger bond, this bond would be repaid <br />so ely from tax increment from the <br />bba;. Kolata noted that Resolution <br />No 945 also stipulates that a 10% debt <br />service reserve be established and that <br />the first payment be interest only, <br />be�ause we will not have increment until <br />19 1. <br />-31- <br />