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South Bend Redevelopment Commission <br />Regular Meeting -May 16, 2008 <br />6. NEW BUSINESS (CONT.) <br />B. South Bend Central Development Area <br />(7) continued... <br />the project, in addition to the bond funds. <br />Baker & Daniels is serving as bond counsel <br />for the Century Center bond. Rich Hill <br />explained why the bond is going through the <br />Redevelopment Commission and why there <br />is a lease. The Lease is actually an <br />Addendum to the Lease approved in 1993 <br />between the between the Commission and <br />Redevelopment Authority. We are amending <br />it to provide for these new projects. Any <br />time we pledge revenue that is not generated <br />from the facility, those funds are considered <br />the same as property tax funds. If we don't <br />use the Lease/Purchase mechanism between <br />the Authority and Commission, we would <br />implicate the city's 2% debt limitation. It <br />makes sense, because it is not a pledge of <br />city funds. The Addendum to Lease includes <br />a maximum rental amount. We don't know <br />what the requirement of the bonds will be, <br />but as we initiate this lease approval process, <br />we go for an amount that we think would <br />provide maximum flexibility. In most cases <br />we lower the lease payment, but after the <br />public hearing process is completed, it cannot <br />be increased without starting the public <br />process again. <br />Mr. Hill noted that the original Resolution <br />No. 2454 set a public hearing for June 6. We <br />are now recommending the public hearing be <br />set for June 13 which would give the <br />Common Council opportunity to act on the <br />lease first, on June 9. <br />19 <br />