1990-12-21 Resolution 29 - Laserfiche WebLink

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SOUTH BEND (INDIANA) REDEVELOPMENT AUTHORITY ~ tC 2 g ~~~J GENERAL COMMENTS ~ he Redevelopment Authority of the City of South Bend, Indiana (the "Authority") T a is issuing $4,200,000 of Taxable Lease Rental Revenue Bonds (the "Taxable ease Rental Bonds".) Proceeds from the sale of the Taxable Lease Rental Bonds,. after payment of issuance expenses, will be used for constructing roads and acquiring land (collectively, the "Projects") in support of the City of South Bend's - Airport 2010 project. A lease dated as of August 1,1990 and restated and amended on December 21, 1990 {the "Lease") has been executed between the Authority and the South Bend Redevelopment Commission (the "Commission".) The Lease provides, among other i things, for the Commission to make semi-annual lease. payments to the Authoyi~yo after completion of the Projects in amounts that will enable the Authorit pay the principal, interest and fiscal agency fees on the Bonds. In order to ~ have funds to make the lease payments, the Commission will levy a sufficient debt service property tax rate on all taxable property within its taxing - boundaries which are coterminous with the corporate boundaries of the City of -~_ South Bend. However, the Commission anticipates the tax increment within the tax allocation area to be sufficient to provide funds to make the lease payments without a tax levy being imposed. - Summary of Estimated Pro"ect Costs and rundin - Page 4 This schedule presents known and estimated project costs. - The Taxable Lease Rental Bonds will be the source of funding for the proposed Projects. Schedule of Amortization of 4 200 000 Taxable Lease Rental Bonds - Pa e 5 The amortization of the $4,200,000 Taxable Lease Rental Bonds is presented in - this schedule. The bonds will mature serially over a period of approximately twenty-one years and seven months with the final bonds due August 1, 2012. The ~ bonds are amortized based at an assumed interest rate of 10 1/Z~. Actual ! interest rates will be determined by competitive bidding. Maximum Lease Payment Schedule - Pase 6 The Lease provides for a maximum first semi-annual lease rental amount of $600,000 which shall be due on the day the Projects are completed or July 28, 1992 whichever is later. If the Projects are completed later than July 29, 1992, the first installment will be pro-rated. However, after the sale of the bonds, each semi-annual lease rental amount is to be reduced to an amount. which will be equal to the principal and interest payments in any bond year, rounded upward to the next $1,000 plus $4,000 for payment of fiscal agency charges, and divided by two, as provided in the Lease. A maximum lease payment schedule is provided on page 6. (Continued on next page) -2-