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REGULAR MEETING <br />JULY 24, 2000 <br />3. The Common Council acknowledges that such special levy must be included within <br />the budget of the City and further acknowledges that it will take such action as <br />maybe necessary to include the same within the budget of the City. <br />4. This Resolution shall be in full force and effect from and after passage by the <br />Common Council and approval by the Mayor. <br />COMMON COUNCIL OF THE CITY <br />OF SOUTH BEND, INDIANA <br />s /Charlotte Pfeifer <br />Member of the Common Council <br />Council Member Aranowski reported that the Personnel & Finance Committee met on this bill and <br />sends it to the Council with a 3 -1 favorable recommendation. <br />Councilmember Aranowski made a motion to accept the substitute version of this Resolution. <br />Councilmember King seconded the motion which carried by a voice vote of nine (9) ayes. <br />Mayor Stephen Luecke, 1400 County -City Building, South Bend, Indiana, made the presentation <br />for this Resolution. <br />Mayor Luecke stated that he is present tonight on the matter of the financing for the College Football <br />Hall of Fame. <br />Mayor Luecke noted that when the Hall was built the Redevelopment Authority issued bonds and <br />entered into a Lease Payment Agreement with the Redevelopment Commission to fund those bonds. <br />The Redevelopment Commission expected to pay for the bonds with sponsorships, tax incremental <br />financing dollars or if necessary by issuing a tax levy to meet those required payments. He noted <br />that sponsorship efforts have not succeeded in paying off the debt on the Hall and TIF dollars are <br />insufficient to meet that obligation. At this time it is necessary to initiate a tax levy to pay for the <br />debt on the Hall. <br />Mayor Luecke reiterated that the City has an obligation to pay for the bonds that exist, whether or <br />not the City refunds those bonds with a new series of bonds. Also, there is a question of refunding <br />or refinancing. There is also a question of changing the agreement with the National Football <br />Foundation. He noted that the Hall and initial exhibits were paid under a commitment by the City <br />and therefore the City has an obligation to pay for that. The City does not have resources as <br />proposed and approved in the initial funding of the bond. Therefore, the City is taking steps for the <br />initiation of a tax levy. <br />Mayor Luecke proposed that the City refund the initial bond on the building. The initial bonds had <br />a floating or variable interest rate but the City does not begin paying on the principal until the year <br />2005. He noted that it is in the City's best interest to begin paying on the principal on those bonds <br />as soon as possible so that the City can pay down the debt quicker and save dollars in the long run. <br />He stated that he believes it will benefit the City at this time to fix an interest rate and payment so <br />that the City is not subject to variations in part to increasing interest hikes in the future. These <br />actions require issuance of new bonds. <br />In the original Agreement with the NFF they had no obligation at all to pay all dollars towards the <br />operations or construction of the hall. However, they have participated by contributing between <br />three hundred thousand dollars ($300,000.00) to four hundred fifty thousand dollars ($450,000.00) <br />per year to meet shortfalls in the funding. Mayor Luecke noted that he is proposing a new five (5) <br />year Agreement with the NFF and this is the result of the City taking full responsibility for the <br />n <br />