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South Bend Redevelopment Commission <br />Special Meeting - November 15, 1993 <br />6. NEW BUSINESS (Cont.) <br />a. continued... <br />on the existing Century Center bond. Instead <br />of increasing the yearly cost, the City is <br />willing to extend the current yearly payment <br />an additional ten years, to the year 2014. <br />That would give Century Center $2,600,000 <br />to spend on improvements. Approximately <br />$42,000 of TIF per year will be needed for <br />the Century Center portion of the bond. <br />Municipal Consultants has conservatively <br />projected the TIF revenues out to 2019, <br />assuming no new development, to show that <br />is would be possible to pay for the new bond <br />costs from TIF. Using those projections, the <br />Hall of Fame portion of the bond was <br />structured to require no more than the TIF <br />available after TIF was used to pay for the <br />Century Center shortfall. <br />Mr. Horton explained that under a <br />conservative scenario, we expect to be able to <br />pay off the $14,000,000 Hall of Fame portion <br />of the bond with corporate donations of at <br />least $2,000,000 per year for seven years. <br />However, in order to have a marketable <br />bond, we are structuring it as though it would <br />be paid from TIF, an A rated, South Bend <br />tax exempt issue. In this way, we will get <br />the best interest rate and terms for the bond <br />in the market. Also, this method will ensure <br />that the city will never need to levy a tax to <br />make the lease payment if the donations don't <br />come in as promised —there would be tax <br />increment available. <br />I" <br />