Laserfiche WebLink
GSouth Bend Redevelopment Commission <br />Special Meeting - June 24, 1994 <br />6. NEW BUSINESS (Cont.) <br />b. continued... <br />enhanced by a letter of credit. Once that <br />letter of credit is repaid, the lease goes out of <br />existence. <br />Mrs. Kolata noted that using a variable rate <br />of interest allows the bonds to be repaid as <br />contributions come in. <br />Ms. Auburn asked if the letter of credit is in <br />place. Mr. Rompola responded that it is not. <br />We expect it to be in place yet today or early <br />next week. We are working on that and <br />when it is in place the bonds will be priced <br />and closed. <br />ANIN <br />Mr. Faccenda noted that when the public <br />becomes aware of the letter of credit, he <br />expects a negative reaction because it is not <br />an American bank. He'd like to get the <br />message out that that bank has been chosen <br />because they were the least expensive. <br />Mr. Rompola noted that several banks were <br />contacted for a bid on providing a letter of <br />credit. Four banks responded. The one we <br />are working with now was the least costly. <br />Mr. Faccenda noted that he keeps hoping that <br />someone will say that the reason we are <br />being hit with additional interest cost is <br />because we had that unprecedented <br />obstruction to this project. If we could have <br />taken care of it several months ago when the <br />projections were made, we could have saved <br />at least a percentage point —which are huge <br />dollars. Our opponents have caused the city <br />-5- <br />