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The South Bend Redevelopment Authority <br />March 13, 2008 Meeting Minutes <br />property to us that we need for the garage site and right-of--way. Until all of the <br />property transfers have taken place there is nothing to lease to the Commission to <br />generate the lease payments to pay the bonds. We will hold the bonds, and not <br />spend any of the proceeds until the property transfer has taken place. If the <br />property transfer does not take place the bonds can be paid off early in full. Kite <br />has agreed, in the Development Agreement, to cover all costs related to the <br />financing should that option be exercised. The property should be all transferred in <br />a week or two. The funds should be transferred next Tuesday. Mr. Alvarez wanted <br />to make sure the Authority is covered as far as the interest payments, and Mr. Inks <br />and Ms. Sell assured him that the Authority is covered. Mr. Alvarez asked why the <br />interest rate went up and then down and then up again before the bonds are paid <br />off. Ms. Sell said that would be a good question for the financial advisor. With the <br />twists and turns of the market right now it is hard to know what will happen in the <br />future. Mr. Inks said the overall interest rate is about 5.4%, which is a little higher <br />than the 5.0% we expected. <br />Upon a motion by Mr. Thomas, seconded by Mr. Alvarez, the Authority approved <br />Resolution No. 165 approving the sale of the South Bend Redevelopment <br />Authority Lease Rental Revenue Refunding Bonds of 2008 (Eddy Street <br />Commons Project), amending Resolution No. 163 and approving the execution of <br />an addendum to the lease between the South Bend Redevelopment Authority and <br />the South Bend Redevelopment Commission for the Eddy Street Commons <br />Project, and other related projects <br />b. Authority approval requested for Construction Management Agreement between <br />Kite Realty Construction, LLC ("Developer") and the City of South Bend, <br />Indiana, by and through its Board of Public Works, and the South Bend <br />Redevelopment Authority (Collectively, "City") <br />Mr. Inks said this is such a huge project and a piece of a more comprehensive <br />project. What we are doing with the bond dollars, through our Board of Public <br />Works, is removing ash, bringing in backfill, doing some basic grading on the site, <br />putting in utilities, roads, right-of--ways, landscaping, and the parking garage. The <br />building of the garage has to coordinate with other construction that has to take <br />place on the site. To make all of this work, we decided to put Kite in charge of all <br />the construction, which should eliminate conflict between "their contractors" and <br />"our contractors." They will use many of the same contractors as the City uses, but <br />for a dense development it is in the best interests of everyone to use Kite as the <br />construction manager. The Director of the Department of Public Works, Gary <br />Gilot, has reviewed this construction management agreement and is comfortable <br />with it. Kite will be at the site each day overseeing the project and reviewing the <br />claims, but all claims are still subject to the review of the Board of Public Works. <br />2 <br />H:\WPDATA\AUTHORTY\3-13-2008 REDEVELOPMENT AUTHORITY MINi1TES.DOC <br />