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NEW ISSUE NOTICE OF INTENT TO BID: November 6,1998 4:00 P.M. E.S.T.
<br />BOOK-ENTRY-ONLY BOND SALE: Upon 24 hours' notice
<br /> RATINGS: Standard & Poor's "_"
<br /> Moody's "_
<br /> Fitch IBCA"_
<br /> (See "RATINGS" herein.)
<br /> OFFICIAL STATEMENT DATED OCTOBER ,1998
<br /> *
<br /> $6,245,000
<br /> SOUTH BEND REDEVELOPMENT AUTHORITY
<br /> Lease Rental Revenue Refunding Bonds of 1998
<br /> (Blackthorn Golf Course Project)
<br />Dated: November 1,1998 Due: March 1, as shown below
<br />Interest: Interest payable March 1 and September 1
<br /> beginning March 1,1999
<br />The Lease Rental Revenue Refunding Bonds of 1998 (Blackthorn Golf Course Project), (the "Refunding Bonds') will be issued by the South Bend
<br />Redevelopment Authority (the "Authority") in accordance with a Trust Agreement (the "Agreement") by and between the Authority and Norwest Bank Indiana,
<br />N.A., Fort Wayne, Indiana, as trustee (the "Trustee'), and pursuant to Indiana Code 36-7-14.5, as amended (the "Act") and will bear interest from November 1,
<br />1998 and will mature on the dates and in the principal amounts set forth below. The Refunding Bonds are being issued by the Authority to provide funds for the
<br />advance refunding of the Authority's Lease Rental Revenue Bonds of 1992 (Blackthorn Golf Course Project) (the "1992 Bonds'), to lower required lease rental
<br />payments and to pay expenses incidental to the issuance of the Refunding Bonds. The Refunding Bonds will be issued in fully registered form in the
<br />denomination of $5,000, or any integral multiple thereof. Interest will be payable on March 1 and September 1 of each year, beginning March 1,1999.
<br />When issued, the Refunding Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York
<br />("DTC"). Purchases of beneficial interests in the Refunding Bonds will be made in book-entry-only form. Purchasers of beneficial interests ixt the Refunding Bonds
<br />(the "Beneficial Owners') will not receive physical delivery of certificates representing their interests in the Refunding Bonds. Interest together with the principal of
<br />and redemption premium, if any, on the Refunding Bonds will be paid directly to DTC, so long as the Refunding Bonds are held in book-entry-only form. Payment
<br />of the final disbursements of interest on the Refunding Bonds, together with the principal of and redemption premium, if any, on the Refunding Bonds to the
<br />Beneficial Owners will be the responsibility of DTC, the DTC Participants and the Indirect Participants, all as defined and more fully described herein. (See
<br />"DESCRIPTION OF THE REFUNDING BONDS - Book-Entry-Only System' herein.)
<br />The Refunding Bonds are payable as to principal, redemption premium, if any, and interest from the rental payments under a Lease between the Authority as
<br />lessor, and South Bend Redevelopment Commission (the "Commission°), as lessee dated as of , as amended (the "Lease'). The Commission is
<br />obligated to make lease payments semi-annually as required by Indiana Code 36-7-14-27, to make an annual appropriation and levy a tax at a rate to provide
<br />sufficient money to pay such lease payments from unlimited ad valorem taxes on all taxable property in the South Bend Redevelopment District (the "District"). The
<br />lease rental payments to be paid by the Commission during the term of the Lease will be in amounts sufficient to pay the principal of and interest on the Refunding
<br />~ds.
<br />Maturity Principal Maturity Principal
<br />Date Amount* Date Amount*
<br />3/1/99 $ 145,000 3/1/07 $ 465,000
<br />3/1/00 190,000 3/1/08 485,000
<br />3/1/01 240,000 3/1/09 505,000
<br />3/1/02 305,000 3/1/10 525,000
<br />3/1/03 365,000 3/1/11 550,000
<br />3/1/04 415,000 3/1/12 575,000
<br />3/1/05 430,000 3/1/13 605,000
<br />3/1/06 445,000
<br />The Refunding Bonds constitute an indebtedness of the Authority payable in accordance with and secured by terms and pledges contained in the Trust
<br />Agreement. Funds for the payment of principal and interest on the Refunding Bonds shall be paid from fixed, semi-annual lease rental payments (the "Lease
<br />Rental") from the Commission to the Trustee in accordance with the Lease. The Lease Rental will be paid from unlimited ad valorem property taxes levied on
<br />all taxable property in the District (an area with boundaries coterminous to the City of South Bend) in an amount which together with Project-related Revenue
<br />(as defined herein) will be equal to the Lease Rental. (See "SECURITY AND SOURCES OF PAYMENT FOR THE REFUNDING BONDS" herein.)
<br />IN CONNECTION WITH ANY ACQUISITION OF THE REFUNDING BONDS BY FINANCIAL INSTTTUTIONS, THE REFUNDING BONDS HAVE
<br />NOT BEEN DESIGNATED "QUALIFIED TAX-EXEMPT OBLIGATIONS" FOR PURPOSES OF SECTION 265(b)(3) OF THE INTERNAL REVENUE CODE OF
<br />1986, AS AMENDED.
<br />TAX EXEMPTION
<br />In the opinion of Baker & Daniels, South Bend, Indiana, Bond Counsel, under existing laws, interest on the Refunding Bonds is excludable from gross income
<br />under Section 103 of the Internal Revenue Code of 1986, as amended, for federal income tax purposes. Such exclusion is conditioned on continuing compliance with
<br />the Tax Covenants (hereinafter defined). In the opinion of Baker & Daniels, South Bend, Indiana under existing laws, regulations, judicial decisions and rulings,
<br />interest on the Refunding Bonds is exempt from income taxation in the State of Indiana for all purposes except the Indiana financial institutions tax and the Indiana
<br />inheritance tax. See "TAX MATTERS" herein.
<br />LEGAL OPINION
<br />Legal matters incident to the authorization and issuance of the Refunding Bonds are subject to the approving opinion of Bond Counsel substantially in the form
<br />set forth in APPENDIX D. This opinion will also be printed on the Refunding Bonds. Certain legal matters will be passed upon for the Commission and the
<br />Authority by their Attorney.
<br />The Authority has authorized the distribufion of this Official Statement to prospective purchasers and other interested parties. The Authority has designated this Official
<br />., atement as a "nearly final" Official Statement as of the date hereof, subject Eo the inclusion of certain additional information to be determined at the time of the award of the
<br />Refunding Bonds.
<br />This cover page contains certain information for quick reference only. It is not a summary of the issue. Investors must read the entire Official Statement to obtain information
<br />essential to the making of an informed investment decision.
<br />* Approximate Amount
<br />
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