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South Bend Redevelopment Commission <br />Regular Meeting - November 5, 1993 <br />6. NEW BUSINESS (Cont.) <br />a. continued... <br />The second element of this bond issue is the <br />College Football Hall of Fame. The Hall of <br />Fame will be a $14 million project. The <br />City will make certain public improvements, <br />as it does with any downtown development <br />project. Those improvements, totalling <br />$700,000, will include such things as <br />landscaping, street improvements, and, in <br />this case, constructing a tunnel to connect <br />Century Center to the Hall of Fame. <br />Capitalized interest and issuance costs will <br />be $1,046,722 for a total expenditure of <br />$15.7 million. Netting out investment <br />earnings, the total bond for the Hall of Fame <br />will be $15.48 million. <br />Mr. Horton noted that the projection shows <br />a shortfall of approximately $40,000 per <br />year on the Century Center bond debt <br />service, which will be made up by tax <br />increment. We hope that figure will <br />decrease as the construction costs are firmed <br />UP. <br />Mr. Horton explained the Hall of Fame <br />bond structure. He noted that, although we <br />intend to pay the Hall of Fame bond off <br />with corporate donations, it would not be <br />possible to sell a bond structured with that <br />revenue stream. In order to sell an A -rated <br />bond at the best interest rate possible, we <br />have structured the bond as if it were to be <br />paid by tax increment. Using a conservative <br />projection of TIF revenue from the <br />downtown TIF district, a repayment <br />schedule has been developed which would <br />keep bond payments at or below expected <br />-7- <br />