RM 05-01-92 - Laserfiche WebLink

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South Bend edevelopment Commission Rescheduled Regular Meeting - May 1, 1992 6. (Cont.) a. conkinued... the project is completed, or January 28, 1993, whichever is later. The term will not exceed 13 years, and can be prepaid. We Bxpect that the maximum $220,000 per year lease payments is high and will be red ced when the bonds are actually Sol . But we are asking approval of the Lea a in substantially this form. Ms. Auburn opened the public hearing. The a were no comments from the public Mr. Donoho asked how we could set an amount for the bond without knowing if the owners of the Palais Royale would accept our offer and how the Commission can enter into a lease for property nei her party owns. Mrs. Kolata responded that we have been negotiating witi the owners of the Palais and are sur the amount of the bond will cover its purchase. As to ownership, our offer is contingent upon the sale of the bonds. When we come to agreement on this offer or a counter offer for the property, the deed will be put into escrow until we have bond proceeds with whi h to purchase it. Mrs the bui: Mr. comf re sx lea: con: payr sufi payr payr fre( Kolata noted that we hope to sell bonds in early July and close on the .ding by the end of July. Piasecki asked where the money will : from to pay the bond. Mrs. Kolata )onded that currently the City has a oe for the ballroom space. We :idered using the same City funds for lent of the bond. However, there is `icient tax increment to make the tents and we are planning to make the tents with tax increment. That would up the City funds for other uses. -5- PUBLIC HEARING ON PROPOSED LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY RELATED TO CERTAIN LAND AND PUBLIC IMPROVEMENTS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (PALAIS ROYALE)