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South Bend Redevelopment Authority <br />Regular Meeting -June 21, 1994 <br />3. NEW BUSINESS (Cont.) <br />a. continued... <br />issuance of bonds in an amount not to exceed $19,000,000 at an interest rate <br />not to exceed 12 % . The 12 % is high, but the nature of these bonds is that <br />they are a variable rate bond and could fluctuate during the time they are <br />outstanding, but the variable rate nature allows them to be redeemed at any <br />time which is in the city's interest as private donations come in to pay for the <br />construction. The resolution also authorizes the sale of bonds to First Chicago <br />National Capital Market; approves the form of trust indenture; and approves <br />the form of preliminary official statement. The trust indenture appoints <br />Norwest Bank to serve as trustee for the bonds. Norwest Bank was the trustee <br />on the Century Center financing. Resolution No. 94 also authorizes a series of <br />other documents, such as the bond purchase contract, related to the variable <br />rate nature of the bonds, and authorizes the President, Vice President, and <br />Secretary to execute those documents when they are complete. Resolution <br />No. 94 authorizes a letter of credit which would pay the bonds off in the event <br />• the bond holders want to all redeem their bonds at the same time. The <br />resolution also authorizes an interest rate cap agreement which would be <br />purchased from First Chicago National Capital Market. With that agreement <br />in place, if the interest rate ever goes higher than the lease rentals can pay, <br />First Chicago National Capital Market will pay the difference. Resolution <br />No. 94 also approves a letter of representation from Depository Trust <br />Company which will hold the bonds for the bond purchasers. <br />Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski and <br />unanimously carried, the Authority approved Resolution No. 94 authorizing <br />the issuance and sale of the South Bend Redevelopment Authority Variable <br />Rate Demand Lease Rental Revenue Bonds of 1994 (College Football Hall of <br />Fame Project) and other related matters. <br />b. Authority apbroval requested for Proposal from Arborwise. Ltd. for <br />professional services in the Airoort Economic Development Area. (Blackthorn <br />Golf Course) <br />Mr. Riggs noted that there is an old oak tree on Blackthorn Golf Course that <br />needs a program to make sure it is properly taken care of and maintained. At <br />the last meeting the Authority was concerned that the tree be protected from <br />lightning. The authority wanted the proposal to include plans ready to be bid <br />-2- <br />