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South Bend evelopment Commission <br />Special Mee ing - August 31, 1990 <br />2. NEW BUSYNESS (Cont.) <br />b. continued... <br />Mrs Kolata explained that Resolution <br />No. 958 is the Final Bond Resolution of <br />the $950,000 Tax Increment Revenue Bond. <br />Since the Commission action approving the <br />boni, it has received approval from the <br />Sta Tax Board and from the Local <br />Hearing Officer for the additional <br />app priation of proceeds plus interest. <br />We are ready to proceed to closing. <br />Mrs Kolata noted that this bond differs <br />fron previous bond issues in that it will <br />be FL negotiated sale, not a public sale. <br />The purchaser will be Raffensperger <br />Hu es at a rate of less than 8 %. The <br />exa rate will be determined within one <br />wee,,. Raffensperger Hughes is completing <br />the' negotiations with the party who <br />will be buying it from them. <br />The proceeds of this bond will be used to <br />pay for preliminary costs in the Airport <br />Economic Development Area, primarily the <br />design of the internal roads, the Toll <br />Road interchange, the improvements to Old <br />Cleveland Road, and to Mayflower Road. <br />The bonds may be redeemed at any time <br />with no penalty. That will allow us to <br />pay off all or a portion of them with the <br />larger lease purchase bond if there are <br />enotigh proceeds in the larger bond to do <br />that. Whatever is not paid off before <br />August 1, 1996, will be paid off at that <br />ti m. It will be paid entirely from tax <br />increment. The coverage is 1.25. The <br />Puntlase Agreement between the Commission <br />and Raffensperger Hughes contains some <br />blaziks for the actual interest rate and <br />the closing date. Resolution No. 958 <br />autliorizes execution of the Purchase <br />Agreement at the yet - to-be- determined <br />ra . We expect closing to take place <br />the week of September 17th. <br />-5- <br />