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_• South Bend Redevelopment Authority Special Meeting - April 14, 1988 4. Adoption of Resolution No. 3 accepting assignment of an Option to Purchase the Stanlev Coveleski Regional Stadium and approving a proposed lease for Commission. I Mrs. Kolata noted that the Authority is being asked to approve a proposed lease with the Redevelopment Commission similar to the proposed lease for the parking facility. However, since the stadium has been built, the total cost is known. The Park Board has an Option to Purchase the stadium from Security Pacific. The Park Board has passed a resolution assigning that Option to the Redevelopment Authority, The Authority would then lease the stadium to the Redevelopment Commission. Resolution No. 3 accepts the assignment of the Option to Purchase and allows the Authority to begin the financing process.. A maximum lease payment of $1,000,000 per year has been used in the proposed lease. That figure was derived by determining the highest yearly payment which would justify the cost of refinancing. The actual yearly payment is expected to be less, depending on whether the bonds can be tax exempt and the interest rate at which the bonds are sold. The final numbers will be known by the time the lease goes before the Local Property Tax Control Board for approval. Resolution No. 3 also directs the Secretary to file a copy of the proposed Lease, as approved, with the Commission. Mrs. Kolata noted that the existing agreements between the White Sox team, the Park Department and the Board of Public Works, etc. will remain in place. The existing revenue stream will be used to pay the lease payment. Mr. Wroblewski asked what the current lease payment is. Mrs. Kolata responded that it is a semi-annual payment of $515,594. Mrs. Kolata noted that projections are that the City would save between $200,000 and $900,000 over the life of the financing. Mrs. Kolata noted that operational revenues from the stadium will be used for the lease payment. There is provision for general obligation taxes to be levied to make up any shortfall in revenues. It is expected that taxes will be levied, but that they will be lower than they would be without refinancing. That is the purpose of the refinancing, to lower the amount of taxes levied. Mrs. Kolata noted that the schedule of this refinancing will be about a .month ahead of the garage financing. We expect to take the lease to the Common Council for approval the beginning of May, the State Tax Board hearing the end of May, and the bond sale about July. Mr. Varga asked if there was any provision for prepayment. Mrs. Kolata responded that she was not certain, but Springsted had structured the Tax increment financing. bonds so that there was no prepayment penalty and thought this might be handled the same way. Upon a motion by Mr. Wroblewski, seconded by Mr. Davey and unanimously carried, the Authority adopted Resolution No. 3.