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space created by new downtown developments and improvements over the past five years, which will be further burdened by new projects currently underway. The Parking Facility will be designed to accommodate 3,600 square feet of retail space at ground level and, eventually, to have skywalk connectors into nearby office buildings. Facades will be precast concrete panels with brick infill. Various materials and special equipment, such as use of microsilica concrete and parking control equipment, will be used to reduce operating and maintenance costs. The garage will be a cast-in-place post-tensioned structure. Since 1980, 1.5 million square feet of new and rehabilitated space have been added to downtown South Bend. The Class A office market has a vacancy of less than 5%. Presently, both City-owned garages are booked at approximately 120% of capacity. New office and commercial projects currently scheduled for the downtown core, totalling over 362,000 square feet, will cause an estimated additional parking demand of 870 spaces. A parking analysis prepared for the City of South Bend by the Michiana Area Council of Governments (MACOG) estimated additional parking demand of 2,294 additional spaces based on projected office and retail development of 771,550 square feet between 1987 and the year 2000. Security and Financing The Bonds are payable from lease rental payments of the Commission to the Authority as provided in the Lease Agreement and secured by the Trust Agreement. The Authority has no taxing power. The Trust Agreement creates a continuing pledge by the Authority to the bondholders to pay the debt service on all Bonds, until the principal sum shall be fully paid, from Pledged Funds (as defined in the Trust Agreement) held in the Funds and Accounts in accordance with the provisions of the Trust Agreement. (Refer to the "Trust Agreement" section of this Official Statement). The Bonds do not constitute a corporate obligation of the City of South Bend for which the -full faith and credit or taxing powers of the City are pledged. However, funds for the payment of the lease rental will be generated by the District, having the same boundaries as the City, from unlimited ad valorem property taxes assessed throughout the District. The Commission intends to reduce tax levies to the extent funds are available from three primary sources: I) net operating revenues from the Parking Facility 2) loan payments from the One Michiana Square office project in repayment for funds received from an Urban Development Action Grant, .and 3) surplus tax increment revenues received from the South Bend Central Development Area. Sufficient funds are projected to be available from three primary sources to make all lease rental payments as demonstrated in the Cash Flow Projection in Appendix F of this Official Statement. However, the District's taxing power will be required to make any lease rental payments in the event the three primary revenues are insufficient to meet required lease payments. Authorization The Authority, a provisions of I.C. improvements for members appointe following page: body corporate and politic, duly 36 7-14.5, was created for the lease to the Commission. The d by the Mayor. Current member organized and existing under the. purpose of financing local public Authority is comprised of three s of the Authority. are listed on the 2-