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South Bend Redevelopment Commission <br />Regular Meeting - January 16, 1998 <br />6. NEW BUSINESS (CONT.) <br />e. continued.... <br />Royale was obtained. Now, new financing <br />is occurring for the renovations of the <br />Palais Royale/Morris, and the financing <br />will supplement the financing that was <br />done in 1992 to acquire the Palais Royale. <br />Mr. Rompola also stated that the current <br />amendment is for two reasons. First, when <br />the State Tax Board approved the lease in <br />August 1997, it approved the lease <br />payment at $3,000 less than what was <br />petitioned for. The opportunity to appeal <br />to increase the petitioned amount was <br />available but the appeal wasn't needed <br />because the maximum lease rental that was <br />approved is still higher than what the <br />actual payment will be. Second, in the <br />financing, a portion of the bond proceeds <br />will be used to create a Reserve Fund that <br />will be held by a Trustee. The Reserve <br />Fund will be available to the <br />Redevelopment Commission as it looks <br />forward to calculate money that will be <br />needed to make lease rental payments each <br />year. The lease has been amended to <br />provide that, to the extent that the fund <br />should ever grow to a sufficient amount, <br />the semi - annual rental payments can be <br />reduced by any excess amount that the <br />Trustee will hold so that there may be <br />some benefit in the future. <br />Upon a motion by Mr. Donoho, seconded COMMISSION ADOPTED RESOLUTION NO. 1571 <br />by Ms. Schwartz and unanimously carried, APPROVING A MODIFICATION TO THE LEASE FOR <br />the Commission adopted Resolution PALAIS ROYALE/MORRIS CIVIC CENTER PROJECT <br />No. 1571 approving a modification to the AND APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE <br />F:\ HOME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -9- <br />