1990-02-16 Minutes - Laserfiche WebLink

Home Browse Search

South Bend Redevelopment Authority. • Special N~eting - February 16, 1990 4. NEW BUSINF55 (Cont.) b. continued... Resolution No. 16 acl~owledges that there are modifications to that lease and authorizes execution of the lease as modified. On February 1, 1990, the State Tax Board approved the bond issue.. The modifications to the lease were minor and do not change the intent of the lease. Upon a motion by Mr. Fewell, seconded by Mr. McCullough and unanimously carried, the Authority approved Resolution No. 16, approving modifications to and execution of a lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Connnission for certain land and public improvements, and regarding other related matters. c. Authority approve]. requested for Resolution No. 17, a resolution of the South Bend Redevelopment Authority, authorizing the issuance of the South Bend Redevelopment Authority Lease Rental Revenue Bonds (South Bend Central Development Area Public Improvement.Project). Mrs. Kolata explained that Resolution No. 17 acl~owledges that the Authority intends to issue bonds in the amount of $4,895,000, that the Authority intends to lease the project to the Redevelo~nent Carmnission according to the term.5 of the lease, that the Authority has been provided a form of Trust • Agreement between the Authority and First Interstate Bank specifying the funds that are to be set up and haw the bond money is to be handled. The resolution limits the interest rate of the bonds to 8 1/2 percent per year and contains a maturity schedule for the bonds. die resolution also authorizes the Secretary of the Authority to publish a notice to sell the bonds in the South Bend Tribune, the Tri-County News, and the Indianapolis Star. A notice of the sale or a sunttnary may be published in Credit Market, a financial journal in New York. Our financial consultant will also notify others whom he thinks would be interested in our bond. Mrs. Kolata noted that the Trust Agreement will not be signed today, but it will be signed at the bond closing. Mrs. Kolata explained that anyone interested in submitting a bid on the bonds will notify us of their interest by a certain date. They will not submit their bid at that time. We will then have thirty days to specify the date of the bond sale. That will allow us scene flexibility to observe the market and pick a good date for the bond sale. We will notify the interested parties of the date of the bond sale, giving about a week's notice. Mrs. Kolata noted that Resolution No. 17 also provides that if the President and Secretary of the Authority determine that the conditions of the market at the time of the sale are such that the Authority is able to f:iriance the projects by issuing bonds in an amount less than $4,895,000, then the bond size will be reduced. • Mr. McCullough asked haw we will know if the projects can be done for a smaller amount. Mrs. Kolata responded that we will have a better idea after