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M <br />South Bend Redevelopment Commission <br />U- n <br />egular Meeting - July 10, 1992 <br />6. NEW BUSINESS (Cont.) <br />b. continued... <br />Golf Course in the Airport 2010 area. <br />The Redevelopment Commission and <br />Redevelopment Authority approved the form <br />of Lease on June 26. <br />Mr. Rompola noted that the term of the <br />Lease is for a period not to exceed 20 <br />years. The maximum rental payment is not <br />to exceed $895,000. The Lease will go <br />before the Common Council also. The <br />State Tax Board will hold a hearing on <br />the Lease on July 22. <br />Mr. Frasier noted that the size of the <br />bond is expected to be $5.5 million, <br />depending on construction bids. This is <br />an outstanding time to be selling bonds. <br />Rates are the lowest they have been in <br />twenty years. Coupling the circumstances <br />of low interest rates with the term of <br />this lease, it appears that the projected <br />revenue from the golf course will be <br />almost double what the payments on the <br />bond will be. <br />Mr. Piasecki asked about a bond rating <br />for this bond. Mr. Frasier responded <br />that we will be issuing bonds with the <br />pledge that we would levy a tax to make <br />the payment if that became necessary. <br />However, a tax levy is far enough down <br />the chain of pledges that we don't expect <br />to ever need to levy taxes to make the <br />payments. With that pledge, it will <br />receive the same rating as if it were a <br />tax supported bond issue. <br />Ms. Auburn opened the Public Hearing for PUBLIC HEARING ON RESOLUTION <br />anyone who wished to be heard. There was NO. 1071 <br />no one who wished to speak regarding <br />Resolution No. 1071. Ms. Auburn closed <br />the Public Hearing for whatever action <br />the Commission wished to take. <br />c. Commission approval requested for <br />Resolution No. 1071. <br />-3- <br />