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The South Bend Redevelopment Authority <br />May 7, 2008 Meeting Minutes <br />City Securities Corporation <br />Standard & Poor's <br />Crowe Chizek & Company <br />Baker & Daniels <br />Baker & Daniels <br />Baker & Daniels <br />Issuance Fees 905.00 <br />Analytical Service -bonds 11,800.00 <br />bond Issuance Costs 75,000.00 <br />Bond Counsel 98,723.06 <br />Designation of Area 15,706.86 <br />Development Agreement 104,072.00 <br />Total: $342,207.66 <br />Mr. Inks said the claims are all related to the issuance of the bonds. There may be a few <br />more small ones that will come in. Ms. Pfotenhauer asked if Mr. Leone had approved the <br />claims. Mr. Inks said the claims have been approved by both Mr. Leone and himself. Mr. <br />Inks brought a letter from Baker and Daniels explaining why the fees are so high and their <br />desire to help by providing a 10% reduction in their fees. Mr. Leone wanted the letter to <br />be a part of the record of the meeting today. <br />Mr. Inks said there are additional documents that are being worked on: an Easement <br />Agreement for the whole site for construction purposes, the Garage Lease that was tabled <br />today, and a Garage Lease with Kite. Mr. Inks made it clear to Baker and Daniels that we <br />needed to be kept abreast of the fees on a much more regular basis. They have been <br />sending monthly bills. We set aside $275,000. in issuance costs for legal fees, and these <br />today total a little over $240,000. <br />Ms. Pfotenhauer asked why we were being charged additional fees. Mr. Inks said the <br />Development Agreement took a large amount of time. There were a lot of revisions. The <br />documents now are more specific. Mr. Alvarez asked if another law firm would have <br />lower legal fees, and Mr. Inks said we would not want to switch law firms and slow the <br />project down. Ms. Pfotenhauer agreed, and said Baker and Daniels has always done good <br />work for us. Mr. Thomas asked what would happen if we went over budget on legal fees. <br />Mr. Inks said the department has appropriated funds for legal fees or may have to take <br />funds from the Redevelopment fund that still has money left in it. <br />Mr. Inks said by May 20 Kite and the University of Notre Dame have to have a finalized <br />document. If we do not have that, then we would have to either tell the trustee to <br />repurchase the bonds or we would be taking a significant risk in waiting for the agreement <br />between the two parties. The University has not allowed us to see their agreement with <br />Kite and has only provided us with a summary. There have been several closings <br />scheduled with them in anticipation of them having a signed agreement. <br />Mr. Alvarez asked if there is anything we can learn from this. Mr. Inks said, yes, we <br />should have inserted ourselves in the process with the University and Kite from the <br />beginning. We should be fully cognizant of the deal. Currently, we are anticipating buying <br />the right of way of the roads in the project site and we probably should not be doing that. <br />2 <br />H:\WPDATA\AUTHORTY\5-7-2008 REDEVELOPMENT AUTHORITY MINi1TES.DOC <br />