1988-06-17 Minutes - Laserfiche WebLink

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outh Bend Redevelopment Authority pecial Meeting - June 17, 1988 3. Continued... Mrs. Kolata"noted that it will not be necessary to .come back to the Authority for approval of the substitution of lower numbers into the lease if the interest rate on the bond is lower than expected. Mrs. Kolata also noted that Resolution No. 5 approves the purchase of the land for the parking facility from the Redevelopment Commission for $1.00. Upon a motion by Mr. Wroblewski, seconded by Mr. Varga and unanimously carried,. the Authority .adopted Resolution No. 5 approving modifications to and execution of a lease between the South Bend Redevelopment Authority and the South Bend Redevelopment. Commission for the St.'Joseph/Wayne Parking Facility and regarding, other. related matters. 4, Adoption of Resolution No. 6, a Resolution of the South Bend Redevelo nt Authority authorizing :the issuance of the South Bend Redevelopment Authorit Lease Rental. Revenue Bonds (Parking Facility Pro~ectl_ Mr. Nussbaum noted that an Official Statement will be prepared so that the prospective bond holders will have notice about the bond sale. Mrs. Kolata noted that the Trust Agreement with. First Interstate Bank is an attachment to this resolution. The Trust Agreement sets forth information required on the bonds and requirements related to the bonds, such as requiring the Authority to secure builders risk insurance during construction, setting up accounts and procedures for receiving and paying construction bills, and the procedure for making principal and interest payments. The Trust Agreement will be signed at bond closing. Mr. Varga noted that this issue is expected to be tax exempt. The numbers provided are based upon that assumption. The bidders on the bonds will be given the benefit of call protection through February 1, 1998. This should add to the marketability of the bonds. The bonds will be serial maturity bonds which will allow a (fairly) fixed principal and interest payment. He also noted that the Authority still has the right to reject the .financing,. which would effectively kill the project, if the numbers that we receive are such that it is not feasible to proceed with the project. Mr. Varga asked Mrs. Kolata to explain the $4,575,000 bond figure including the $50,000 of extra costs. .She explained that the actual bid for construction of the garage was $3,200,000. We had asked for an estimate for adding brick facade to the other two .sides of the garage. That $30,000 estimate was considered worthwhile and is being added to the construction cost. However, the additional construction cost increased the cost of the 10% contingency. The remainder of the difference between the $3,200,000 and $3,980,000 is for finishing the retail space, paying the architect's fees and other necessary expenses over and above the actual construction costs. This $780,000 should be sufficient and any extra .will be applied to principal and interest payment(s). -2-