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South Bend Redevelopment Commission <br />.., Regular Meeting - May 22, 1992 <br />6. NEW BUSINESS (Cont.) <br />M. continued... <br />Mr. Krcmaric noted that the Commission <br />passed Resolution No. 1054 on May 1, <br />authorizing the issuance of up to <br />$6,500,000 of bonds and, following a <br />public hearing, appropriating the bond <br />proceeds. We indicated at that time that <br />we would come back later with an <br />amendment indicating the amount of the <br />bonds we would be refinancing. <br />Resolution No. 1065 authorizes a maximum <br />of $5,045,000 which is based on a partial <br />refunding of the 1985 and 1986 TIF <br />bonds. We will not be refinancign teh <br />1988 bonds. The latest estimate we have <br />from our financial consultant, Evensen <br />Dodge, indicate a gross savings of about <br />$120,000 and a present value savings of <br />about $75,000. We anticipate going to <br />market within the next few weeks, based <br />on interest rate conditions. <br />We are anticipating obtaining a rating <br />indicator from Moody's to help us get a <br />better interest rate, and are also <br />looking at the possibility of bond <br />insurance. <br />This resolution also approves the <br />Official Statement for the bond. We also <br />have received the parity bond <br />certificate, prepared by Evensen Dodge as <br />a requirement under the resolutions for <br />the outstanding bonds, showing that the <br />coverage test is satisfied. We have to <br />show that, in each year in which bonds <br />are outstanding, the TIF is expected to <br />be at least 150 of the debt service <br />requirement in that year. <br />Mrs. Kolata noted that when we began <br />looking at refunding, we were looking at <br />the possibility of refunding the 1985, <br />1986 and 1988 bonds. We have decided to <br />only refund portions of the 1985 and 1986 <br />bonds at this time. <br />-14- <br />