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South Bend Redevelopment Commission <br />Regular Meeting - July 19, 1996 <br />6. NEW BUSINESS (Cont.) <br />g. continued.... <br />name. Mellon Bank has been able to actually <br />purchase and extinguish $150,000.00 worth of <br />bonds with the money that has been deposited. <br />The lease payment that Redevelopment needs to <br />make on July 28 has been reduced by 5,550.00. <br />The other part of the letter states that they want <br />to send a letter to bond holders that have bonds <br />maturing on August 1, 2012, to see if the bond <br />holders would like to sell their bonds. Mellon <br />Bank has approximately another $100,000.00 <br />that Redevelopment has deposited with them in <br />which to buy more bonds and further reduce the <br />lease payments. Mellon Bank has been <br />watching the market and because they're long- <br />term bonds there isn't much activity. Mellon <br />Bank wants to actively solicit to some of the <br />current bond holders. <br />Mrs. Kolata noted that the Redevelopment <br />Commission's approval of the letter from <br />Mellon Bank will only acknowledge that the <br />lease payments are to be reduced and that <br />Mellon Bank plans to solicit bond holders to <br />buy additional bonds. <br />Mrs. Kolata noted that the Redevelopment <br />Authority met on Wednesday, July 17 and they <br />approved the letter from Mellon Bank because <br />technically the Redevelopment Commission <br />makes its lease payments to the Redevelopment <br />Authority and the staff did not want to pay less <br />than what the lease requires without approval <br />from both parties. <br />ItIa <br />