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South Bend Redevelopment Commission <br />Regular Meeting - December 18, 1992 <br />6. NEW BUSINESS (Cont.) <br />k. continued... <br />section authorizing the issuance of bond <br />anticipation notes and the sale of those <br />notes to the Indiana Bond Bank. <br />Mr. Rompola explained that bond <br />anticipation notes may be used instead of <br />short term TIF bonds to pay for <br />preliminary expenses related to a <br />project. That will result in a <br />substantial interest savings to the City <br />because the interest rates on bond <br />anticipation notes (BAN) are <br />significantly lower. When the larger TIF <br />bond is sold next summer to finance the <br />Hall of Fame, proceeds from that will be <br />used to pay off the BAN. <br />The principal amount of the BAN is an <br />amount not to exceed $2,900,000. The <br />interest rate will not exceed 6W. It is <br />anticipated that the actual interest rate <br />will be approximately 3% to 334W. The <br />maturity of the BAN will be December 31, <br />1994. <br />Mrs. Kolata acknowledged the efforts of <br />Kevin Horton, City Controller, who was <br />not satisfied with the expected interest <br />rate on the TIF bond and worked with <br />Baker & Daniels and Municipal Consultants <br />to find a less costly solution. <br />Upon a motion by Mr. Faccenda, seconded <br />by Mr. Piasecki and unanimously carried, <br />the Commission approved Resolution <br />No. 1124 amending Resolution No. 1118 <br />entitled "A Resolution of the South Bend <br />Redevelopment Commission authorizing the <br />issuance of bonds on parity with the City <br />of South Bend Redevelopment District Tax <br />Increment Revenue Bonds of 1985, the City <br />of South Bend Redevelopment District Tax <br />Increment Revenue Bonds of 1986 and the <br />City of South Bend Redevelopment District <br />Tax Increment Revenue Bonds of 1988 for <br />the purpose of raising money for <br />redevelopment in the South Bend Central <br />Allocation Area." <br />-11- <br />COMMISSION APPROVED RESOLUTION <br />NO. 1124 AMENDING RESOLUTION NO. <br />1118 ENTITLED "A RESOLUTION OF <br />THE SOUTH BEND REDEVELOPMENT <br />COMMISSION AUTHORIZING THE <br />ISSUANCE OF BONDS ON PARITY WITH <br />THE CITY OF SOUTH BEND <br />REDEVELOPMENT DISTRICT TAX <br />INCREMENT REVENUE BONDS OF 1985, <br />THE CITY OF SOUTH BEND <br />REDEVELOPMENT DISTRICT TAX <br />INCREMENT REVENUE BONDS OF 1986 <br />AND THE CITY OF SOUTH BEND <br />REDEVELOPMENT DISTRICT TAX <br />INCREMENT REVENUE BONDS OF 1988 <br />FOR THE PURPOSE OF RAISING MONEY <br />