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South Bend Redevelopment Commission <br />Regular Meeting - May 2, 1997 <br />6. NEW BUSINESS (Cont.) <br />a. continued.... <br />obligation backup but that is for <br />marketing purposes only, there will be <br />sufficient funds from the EDIT tax to pay <br />for the bond issue without levying a tax. <br />It's anticipated that the bond won't be <br />sold until late 1997 or early 1998 to allow <br />for receipt of the construction bids. <br />Randy Rompola stated that with respect <br />to the source of funds for the bonds, the <br />financial advisor shows that it is possible <br />to pay for the bond solely from EDIT <br />taxes if pledges come in less than what is <br />expected. The coverage is about 170% <br />without the pledges; but the intention of <br />Redevelopment is to use the pledges as <br />they come in for debt service and to <br />make -up the balance with EDIT. For the <br />purpose of showing the ability to pay for <br />the project without levying a tax, it's <br />showing that financing will come solely <br />from EDIT and then adding back in the <br />pledges. <br />Ms. Kolata noted that cash -on -hand will <br />be used to reduce the bond size when the <br />bond is finally structured. <br />Ms. Auburn thanked all the volunteers, <br />especially Margaret King and Duke <br />Jones. <br />Ms. Schwartz stated that this is a really <br />exciting project for downtown South <br />Bend and the community. <br />r -11- <br />