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South Bend Redevelopment Commission <br />Special Meeting - November 15, 1993 <br />6. NEW BUSINESS (Cont.) <br />a. continued... <br />The Redevelopment Authority is designed to <br />deal with economic development projects <br />through leases with the Redevelopment <br />Commission. The Redevelopment Authority <br />would use $3,200,000 of this bond to pay the <br />Civic Center Building Authority so it can pay <br />of the existing bond. Simultaneously, <br />Century Center will be conveyed to the <br />Redevelopment Authority. <br />Mr. Horton explained that, for the Hall of <br />Fame component of the bond, bond proceeds <br />will be approximately $15,400,000. <br />Investment earnings will be approximately <br />$300,000. Of that $15,700,00 total, <br />$14,000,000 will be used for the construction <br />of the Hall of Fame, $700,000 will be used <br />for public improvements, including the tunnel <br />connecting the two facilities, and the <br />remainder will be used for capitalized interest <br />and costs of issuance. <br />The total bond issue, therefore, will be <br />approximately $21,821,000, plus investment <br />earnings of approximately $335,000, for a <br />total available amount of $22,156,000. <br />Mr. Horton then explained the revenue <br />streams for repayment of the bonds. The <br />City currently has a lease obligation of <br />$496,000 per year on the Century Center <br />bonds that runs out in the year 2004. Of <br />that, the Hotel Motel Tax Board contributes <br />$150,000 and the School Corporation <br />contributes $50,000, leaving the City with a <br />net annual investment of $296,000 per year <br />-5- <br />