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- ~, <br />South Bend Redevelopment Authority <br />• Special Meeting - December 17, 1990 <br />3. NEW BUSINESS (Cont.) <br />b. continued... <br />will register with us and we will contact them no less <br />than 24 hours from the time of sale. That allows us the <br />most flexibility to evaluate the bond market. We <br />anticipate a sale date of approximately January 15th. The <br />resolution states that the award will be made to the <br />bidder offering the lowest net interest, but. no less than <br />98 °s of the face value of the bond. The resolution also <br />designates the Board of Public Works as the agency who <br />will handle the construction of the improvements to be <br />built with the bond funds. <br />Mrs. Kolata noted that through the issuance of these two <br />bonds we expect to fully redeem the $950,000 bond that <br />the Redevelopment Commission sold earlier this year. <br />Mrs. Kolata noted that the bonds will be bid separately <br />and bidders may bid on one bond or both. <br />Mrs. Kolata noted that the $4,200,000 taxable bond will <br />• finance two improvements: the .northwest loop and the <br />acquisition, relocation and clearance of property. The <br />IRS has determined those uses to be non tax-exempt. <br />Mr. Pendl asked if the Authority can lease something it <br />doesn't own. Mrs. Kolata responded that the Lease <br />doesn't go into effect until August 1992, allowing for a <br />construction period. <br />Mr. Pendl asked if he made improvements to his property <br />now, such as adding a room addition, would they be <br />considered in the value of property. Mrs. Kolata <br />indicated that the appraisers would re-appraise the <br />property if he made substantial changes. <br />Mr. Pendl inquired about how much of the bond actually <br />goes toward project costs. Mrs. Kolata responded that <br />issuance costs pay for financial advisors, bond counsel, <br />printing of the bond, printing of the Official Statement, <br />and the bond rating. We also set aside a portion of the <br />bond as capitalized interest to make the first couple of <br />bond payments. <br />Mr. Pendl's point was that others stand to make money <br />from the sale of this bond while the property owners <br />stand to lose money. Mrs. Kolata responded that until <br />. the appraisers place a value on the property we can not <br />-3- <br />