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OFFICIAL STATEMENT • $4 895 000 SOUTH BEND (INDIANA) REDEVELOPMENT AUTHORITY LEASE RENTAL REVENUE BONDS (SOUTH BEND CENTRAL DEVELOPMENT AREA PUBLIC IMPROVEMENT PROJECT) Introductory Statement This Official Statement contains information pertaining to the issuance of $4,895,000 Lease Rental Revenue Bonds (South Bend Central Development Area Public Improvement Project) (the "Bonds" or the "Issue") by the South Bend Redevelopment Authority {the "Authority") in accordance with I.C. 36-7-14.5, pursuant to the authorizing Bond Resolution and the terms and conditions of the Trust Agreement. The Bonds are to be issued under and secured by a Trust Agreement dated as of November 1, 1989 between the Authority and First Interstate Bank of Northern Indiana, N.A. (the 'Trustee"). The Authority will sell the Bonds to finance land and public improvements in the South Bend Central Development Area. The Authority will lease the improvements to the South Bend Redevelopment Commission (the "Commission") pursuant to a Lease dated as of November 1, 1989 (to be further amended prior to bond closing as described in certain sections of this Official Statement). The Bonds shall constitute an indebtedness only of the Authority payable in accordance with the terms of the Trust Agreement and secured by the Pledged Funds (as defined in the Trust Agreement) and all pledges, assigns and covenants made therein. Funds for the payment of . principal and interest on the Bonds will be provided by lease rental payments made by the Commission to the Trustee. Funds for the lease rental will be generated from unlimited ad valorem roe taxes assessed throughout the South Bend Redevelopment District (the "District") (having the same boundaries as the City of South Bend). Although not pledged, the Commission expects to make certain tax increment revenues available for payment of the lease rental Lease rental payments are subject to certain conditions regarding commencement and abatement as more fully described in the section entitled "Risk Factors to be Considered by Investors" contained in this Official Statement. Project Financing and Description Land Acquisition and Public Improvements $3,852,360 Capitalized Interest 873,783 Issuance Costs 175,000 Allowance for Underwriter Discount 85.663 Subtotal $4,986,806 Less: Estimated Interest Earnings 91 806) Total Bond Issue $4,895,000 Bond proceeds will be used for the acquisition of certain land and the construction of new improvements, the incidental costs incurred relating thereto, and to pay the costs of issuance. • The real estate to be acquired (including all right-of-way easements) and improvements to be made thereon (hereinafter referred to as the "Improvements" or the "Public Improvement Projects") and corresponding legal descriptions are more fully described in Exhibit C of the -1-