05-09-88 Human Resources & Economic Development

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second and third readings and public hearing on Bill No. 29 88 which is a Bill to approve a lease for the Stanley Coveleski Regional Stadium between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission. Mr. Richard Nussbaum stated that the City Administration is requesting a suspension of rules due to the fact that the hearing before the State Tax Commissioners has been moved up to May 20, 1988. He further stated that hearings had taken place before the Redevelopment Commission and the Park Board and all were favorable with regard to the lease agreement. Basically there would be three revenue sources namely the revenue from the stadium, the cable television revenues, as well as tax dollars. Mr. Nussbaum stated that revenues from the stadium are higher than anticipated and that on May 15, 1988 the City would be receiving a check from the team. The games are averaging approximately two thousands per game. He also stated that revenues have reached 60% of the $50,000.00 which is the number which must be met before the City receives increased proceeds from the team. Councilman Soderberg requested additional information with regard to this and Mr. Nussbaum stated that he would provide that material. Councilman Slavinskas voiced concern with regard to whether this is appropriate. Mr. Nussbaum stressed that this is a revenue bond and not a general obligation bond. Mrs. Kolata also stressed that this was a revenue bond. Councilman Slavinskas stated, however, that the technical aspects are often blured and that many times it may be perceived by the general public as a general obligation bond. Councilman Luecke had several questions to Mr. Nussbaum. He was advised that the House Ways and Means Committee will be providing further information on tax v. tax-exempt status in late May or early June. Several variables must be considered which include higher interest rates and the State cap. Councilman Duda questioned what the City's bond rating was and was advised by Mr. Nussbaum that it was an "A-1" rating. Councilman Zakrzewski questioned whether Mr. Dave Gogel is still employed by the City and working in Washington. Mr. Nussbaum believed that he was not but that he would check into that further. Total savings anticipated would be approximately $255,800.00 and may be greater if there is a tax exempt status. Following further discussion, Councilman Coleman made a motion seconded by Councilman Slavinskas that Bill No. 29-88 be recommended favorably to Council. The motion passed. 3