RM 06-26-92 - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting - June 26, 1992 6. NEW BUSINESS (Cont.) e. continued... Mrs. Kolata noted that we expect to begin construction of the golf course about October 1. Work would continue through 1993 and allow the grass to mature to mid 1994. We expect to have the course open for play in July 1994, with the first full season being 1995. The estimated cost of constructing and equipping the course is approximately $4.5 million. Mr. Rippey explained that the name Blackthorn Golf Course was taken from the Blackthorn tree, a type of Hawthorn tree that grows in Ireland. Therefore, it lends itself to an Irish theme. There are some Hawthorn trees on the site. Mr. Luecke asked who will manage the course. Mrs. Kolata responded that it will be privately managed, by a yet unknown firm. It will be a public course, open to the public, but privately managed. Mrs. Kolata noted that the size of the bond issue will be approximately $5.4 or $5.5 million. We need to capitalize interest through 1995 and the amount will depend on interest rates at the time the bond is sold. Mrs. Kolata noted that Resolution No. 1070 approves the concept of leasing the project from the Redevelopment Authority. It sets a maximum annual lease term of 20 years and a maximum lease payment of $895,000. We don't expect the lease payments to be that high, but once the maximum is set, the schedule can't include a payment that exceeds it without starting the whole process again. The actual lease payment amount will be amended after the sale to reflect actual interest costs. The resolution also sets July 10, 1992 for a public hearing on the lease and approves the plans, specifications and cost estimates for the project. -5-