1990-12-28 Resolution 30 - Laserfiche WebLink

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SOUTH BEND (INDIANA) REDEVELOPMENT AUTHORITY ~,~ y"~ i ~ ~~-~ Y GENERAL C01~SENTS _._ Dry 1 9 ~~~0 -= ,s ~< The Redevelopment Authority of the City of South Bend, Indiana (the "Authority") is issuing $2,355,000 of-Lease Rental Revenue Bonds (the."Lease Rental Bonds".) Proceeds from the sale of the Lease Rental Bonds, after payment of issuance expenses, will be used for constructing roads., extending utilities, and acquiring land (collectively, the "Projects") in support of the City of South Bend's Airport 2010 project. A lease agreement 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 things, for the Commission to make semi-annual lease payments to the Authority after completion of the Projects in amounts that will enable the Authority to 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 ~'st~mated Proiect posts and Funding - Page 4 This schedule presents known and estimated project costs. The Lease Rental Bonds will be the source of funding for the proposed Projects. Schedule of Amortization of S2 355 OOO Lease Rental Bonds - Page 5 The amortization of the $2,355,000 Lease Rental Bonds is presented in this schedule. The bonds will mature serially over a period 'of approximately twenty- one years and five months with the final bonds due August 1, 2012. The bonds. are amortized based on the actual interest rates from the winning bid as determined by competitive bidding.. ~Saximum Lease Payment Schedule - Page 6 The Lease provides for a maximum first semi-annual lease rental .amount of $300,000 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 wn 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-