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045°"Trx �� CITY of SOUTH BEND <br /> 77 1 JOSEPH E. KERNAN, MAYOR <br /> 1 � 4+ COUNTY CITY BUILDING SOUTH BEND. INDIANA 45601 <br /> \ <br /> • 1866 � <br /> City attorney May 3, 1988 219/284-9241 <br /> Members of the Common Council <br /> 4th Floor, County-City Building <br /> South Bend, Indiana 46601 <br /> Dear Council Members: <br /> The attached ordinance approves a lease between the South Bend <br /> Redevelopment Authority and the South Bend Redevelopment Commission <br /> in conjunction with the refinance of the Stanley Coveleski Regional <br /> Stadium. <br /> The lease establishes a maximum annual rental of $1, 000, 000. <br /> This rental payment is a conservative estimate of the amount that <br /> will be required to retire a taxable bond issue over the eight and <br /> a half (8 1/2 ) year term of the bond. The commission will use <br /> three sources of funds to make the lease payments: revenue <br /> generated from the Stanley Coveleski Regional Stadium, cable <br /> television franchise fees, and property tax revenue. <br /> The amount of rent necessary to be paid in order to retire the <br /> bonds is contingent upon legislation pending in Washington, and <br /> market rates at the time the bond issue is bid. It is our hope <br /> that we can lower the annual rental payment with favorable <br /> legislation and favorable rates. In any event, the current annual <br /> payment under the lease purchase agreement in effect is $30, 000 per <br /> year greater than the annual rental payment set out in the <br /> ordinance. <br /> I will be happy to answer any questions you have regarding the <br /> refinance of the Stanley Coveleski Regional Stadium, and ask that <br /> you give serious consideration to the approval of this ordinance. <br /> Sincerely, <br /> f),44.1 11 Ve <br /> Richard A. Nussbaum, II <br /> City Attorney <br /> RANII:kls <br />