03-28-13 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting —March 28, 2013 6. NEW BUSINESS B. South Bend Central Development Area (2) continued... approximately six months, ending on March 18, 2012. On March 27, 2012, the Redevelopment Commission approved a six month extension for the two remaining properties. Since that time, one of the two remaining properties has been sold, leaving one property of the original five listed. This is an extension for six months of the Listing Contract for the remaining property, 620 Columbia Street, ending September 28, 2013. Staff requests approval of the extension with Hallmark Real Estate, so they may continue to market this property. Upon a motion by Mr. Downes, seconded by Ms. Schey and unanimously carried, the Commission approved the Extension to Listing Agreement with hallmark Realty for 620 Columbia St. (3) Staff Report on Leighton Plaza Item 6.B.(3) was withdrawn. (4) Resolution No. 3133 continuing certain funds and accounts in connection with the Lease dated as of November 1, 1993, as amended, between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority and regarding related matters. (Century Center Bond Refunding) Mr. Inks noted that interest rates have fallen since the Century Center Bonds were issued in 2008. It is estimated that refinancing now would save $346,000 over the remainder of the bond term, net of new issuance costs. The net present value of these savings is estimated to be $284,000. The bond maturity will stay at the original date of May 2028. It is estimated bond payments will decline by about $25,000 per year. These bonds are being paid by Hotel/Motel tax revenues. Mr. Randy Rompola, Faegre Baker Daniels, noted that the Hotel /Motel tax board pledged up to $600.000 a year for debt service on these bonds. The debt service is far less than that. What isn't used for debt service is returned to the Hotel /Motel tax board. From a savings standpoint the estimated percentage of savings will range between 6.1%-7.3%. The industry standard deciding whether it is economical to do a refunding is 3 %. In 2008, the rates on the old bonds ranged from 4' /z% - 5.6 %. The new rates are estimated at a range of 2% - 3/1 %. Upon a motion by Mr. Downes, seconded by Ms. Schey and unanimously carried, the Commission approved Resolution No. 3133 continuing certain funds and accounts in connection with the Lease dated as of November 1, 1993, as amended, between the South