Appropriating $45,000.00 to Provide Funding Facility for Displaying the Studebaker Automoblie Collection

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®4®v,,® CITY of SOUTH I �END - QVT# 0®1 p4. �t1'llly/?••-• + 4. ROGER O. PARENT, Mayor !% de 0 Ail' aee it to 0 COUNTY CITY BUILDING SOUTH BEND, INDIANA 46601 $4 uliV=•_Click-r.)-47 I 47 i• N, Isstc4e Michael L. Vance Director, Administration and 219/284-9742 Finance May 8, 1985 Mrs . Beverlie Beck, President South Bend Common Council 4th Floor County-City Bldg. South Bend, IN 46601 Dear President Beck: The enclosed ordinance appropriating $45, 000 from the General Fund of the City of South Bend is being filed for first reading of the May 13 , 1985 Council meeting. The ordinance would appropriate monies from the General Fund for the payment of land contract obligations in relation to the Freeman-Spicer property for storage and display of the Studebaker Collection and other artifacts belonging to Studebaker Museum. The $45, 000 to be appropriated will fund payments necessary for the balance of 1985 . The City has chosen to use a ten (10) year land contract with a release clause as the financing instrument since this will allow the City to review other facility options while providing suitable space for the collection. Under this purchase arrangement, the City can be released from its purchase obligation after the first three (3) years of the contract. The details of the proposed purchase are as follows: Purchase Price - $480, 000. Term of purchase 10 yrs with payments made monthly. Proposed interest rate is 8% . The Studebaker Museum is currently occupying the Freeman-Spicer Building for storage, display and renovation of the collection at a cost of $5000 per month plus property taxes amounting to $890. 00 per month. Under the proposed land contract purchase, we would be paying an additional $823 . 00 per month. ,