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SOUTH BEND REDEVELOPMENT COMMISSION
<br /> Public Improvement Projects and Beacon District Project
<br /> ILLUSTRATIVE PROJECT COSTS AND FUNDING
<br /> Illustrative Project Costs: Series A Series B Total
<br /> Net proceeds available for projects (1)
<br /> River West Public Improvements $18,300,000 (2) $18,300,000
<br /> River East Public Improvements 12,300,000 (2) 12,300,000
<br /> Beacon District $24,000,000 (3) 24,000,000
<br /> Debt service reserve (4) 4,354,619 4,403,900 8,758,519
<br /> Allowance for underwriter's discount(1.00%) 347,200 288,950 636,150
<br /> Allowance for Bond issuance costs and contingencies 300,800 202,150 502,950
<br /> Total Illustrative Project Costs $35,602,619 $28,895,000 $64,497,619
<br /> Illustrative Project Funding:
<br /> Illustrative Tax-Exempt Lease Rental Revenue Bonds(5) $34,720,000 $34,720,000
<br /> Illustrative Taxable Lease Rental Revenue Bonds (5) $28,895,000 28,895,000
<br /> Cash on hand contribution 882,619 (6) 882,619
<br /> Total) Illustrative Project Funding $35,602,619 $28,895,000 $64,497,619
<br /> (1) Represents Bond proceeds, net of issuance costs,that will be available for capital expenditures related to the projects.
<br /> (2) Represents proceeds needed to finance various other public projects, per the City as of November 1, 2022.
<br /> (3) Represents proceeds needed to finance the Beacon District Project, per the City as of November 1, 2022.Assumes
<br /> the Bonds will be issued in Fall 2023.
<br /> (4) Assumes a debt service reserve funded from bond proceeds in an amount equal to the maximum annual debt service payment.
<br /> If a reserve fund is not required, or if the reserve is funded through a surety or with cash on hand,then the bond size will be
<br /> adjusted accordingly.
<br /> (5) Assumes the Bonds will be payable from tax increment revenue generated in the River West Development Area and the
<br /> River East 1 Economic Development Area with a special benefits tax backup.
<br /> (6) Assumed the debt service reserve(DSR)will be funded in an amount equal to maximum annual debt service (MADS). IRS
<br /> regulations limit the funding of the DSR to 10%of the par amount of the Bonds. Assumes the additional of funds needed to
<br /> equal $882,619 MADS will be contributed from available funds on hand. If a DSR is not required,the bond amount may be
<br /> adjusted accordingly.
<br /> Note: It is assumed the Commission will lease existing City-owned property and,therefore, capitalized interest will not be required.
<br /> (Subject to the attached letter dated December 2, 2022)
<br /> (Preliminary-Subject to Change)
<br /> (For Internal Use Only)
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