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South Bend Redevelopment Commission <br />Regular Meeting - June 3, 1994 <br />6. NEW BUSINESS (Cont.) <br />b. continued... <br />there was a net interest cost of 6.31 % <br />and as a result, the Authority and <br />Commission can reduce the lease rental <br />to $297,000.00 semi - annually. <br />Initially, when the lease was originally <br />approved, interest rates were much lower <br />and the market was much more stable, <br />but there was a factor in the lease rental <br />payment for increased interest rates, and <br />this has happened over the last couple of <br />months. Bond interest rates have crept <br />upwards so that now we are able to price <br />the bonds at a price that is still under the <br />maximum lease payment, but perhaps not <br />as low as we had originally estimated <br />last fall. <br />The other thing that the Resolution <br />approves, and the Lease Addendum <br />indicates, is that now there is a Century <br />Center financing and a Hall of Fame <br />financing. This has primarily to do with <br />the cost savings on the Hall of Fame <br />financing which will be accomplished <br />differently than the Century Center <br />financing. To do that, we needed to <br />change some of the definitional terms in <br />the Lease. Exhibit A of the Resolution <br />highlights the changes. Basically they <br />just separate out the terms that need to <br />be separated for two separate lease <br />rentals and two separate bond issues. <br />The lease rental is being pledged for the <br />repayment by the Authority for the debt <br />on the Century Center, and then the Hall <br />-7- <br />