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• • South Bend Redevelopment Authority Special Meeting -March 15, 1994 4, NEW BUSINESS (Cont.) a. continued... favorably and we hope the bids will be similarly favorable for the exhibitry. The Redevelopment Commission and the South Bend Common Council both voted unanimously to recommend moving forward with the issuance of bonds for construction. The construction contracts are ready to be signed immediately. We expect to be able to sell bonds in early to mid April and close on the bonds before the end of April. The financing plan that follows will protect the citizens of South Bend from having to pay for the bonds: 1. The National Football Foundation has committed a $4.5 million guarantee. That guarantee will be called upon if the fundraising effort is unsuccessful or partially successful. The chances of the fundraising being successful is • bolstered by this commitment from the National Football Foundation. 2. A group of eighteen citizens has stepped forward to guarantee $2.5 million worth of additional bonds. 3. The University of Notre Dame has committed human resources to take over the fundraising effort. Dr. Bill Sexton, Vice President for University Affairs will be chairing the corporate sponsorship side of the fundraising. Dr. Phil Faccenda, Vice President and General Counsel, will chair the individual subscription effort. 4. The Indiana General Assembly recently passed legislation that increased the HotellMotel Tax in St. Joseph County from 5 % to 6 % . That additional tax will generate additional funds which can be used for the Ball of Fame project. The Mayor will ask the HoteUMotel Tax Board to dedicate those additional revenues from the first year to one-and-one-half years for pre- opening expenses and, at the end of 1995, make an additional determination whether those funds will be needed for debt service on the bonds. A conservative projection of those additional revenues over a 25- year period would cover $4 million of the bonds. 3