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South Bend Redevelopment Commission <br />Regular Meeting - November 5, 1993 <br />6. NEW BUSINESS (Cont.) <br />a. continued... <br />TIF revenue to the year 2019. Therefore, to <br />the bond market this looks like a straight- <br />forward TIF bond. The other advantage that <br />gives the City is that, if a corporation cannot <br />make its commitment in a given year, there <br />would be tax increment enough to make the <br />lease payment. We don't anticipate that <br />happening, but we feel that we have an <br />obligation to cover that contingency. <br />As contributions come in, they will be used <br />to purchase treasury securities which will <br />defease the bonds. The end result is that the <br />U.S. government will be paying the <br />principal and interest on the bond. <br />The Lease must name the maximum lease <br />payment which would be required during the <br />term of the lease. The estimated highest <br />lease payment that will be required for the <br />Century Center portion of the project is <br />$538,000 per year and, therefore, the Lease <br />establishes the maximum semi - annual lease <br />payment for the Century Center portion <br />during the first years of the project at <br />$300,000 and the maximum semi - annual <br />lease payment during the remaining years at <br />$300,000. <br />According to the proposed debt service <br />schedule, the maximum debt service for the <br />Hall of Fame portion of the project is <br />$2,685,000 per year and, therefore, the <br />Lease establishes the maximum semi - annual <br />lease payment for the Hall of Fame portion <br />during the first years of the project at <br />$660,000 and the maximum semi - annual <br />