RM 09-18-92 - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting - September 18, 1992 c. Commission approval requested for Resolution No. 1097 establishing its intent to issue Redevelopment District Tax Increment Revenue Bonds and authorizing the reimbursement of the Commission and the City of South Bend for payments of certain preliminary expenses incurred prior to the issuance of such Redevelopment District Tax Increment Revenue Bonds out of the proceeds of the bonds. Mrs. Kolata noted that Resolution No. 1097 and No. 1098 are related to the issuance of Redevelopment District Tax Increment Revenue Bonds related to the College Football Hall of Fame. Resolution No. 1098 authorizes the issuance of the bond in an amount not to exceed $3,000,000 to pay project costs and related expenses related to the College Football Hall of Fame. Payments will be made solely from tax increment in the South Bend Central Development Area. They will have a maturity date no later than February 1, 2013. The maximum interest rate will be 8%-. The purpose of the bond issue and the reimbursement resolution is to pay for the preliminary costs of the Hall of Fame, such as architectural and design fees and the exhibit design fees. The City intends to issue bonds for the construction of the Hall of Fame in June or July 1993. Those bonds will be supported from revenue pledged to purchase sponsorships of the Hall of Fame. There are about $2,500,000 of expenses which need to be paid before we have proceeds from the larger bond. The remaining funds will be used for a debt service reserve and will cover issuance costs. The bond is structured BO that it could be carried to the year 2013, if necessary; but we expect to pay it off with the larger bond or from cash donations. APIA Resolution No.,1097 states that any costs that are incurred now can be paid from this bond issue and will later be reimbursed from the larger bond issue. -4-