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The Redevelopment Authority <br />March 20, 2013 Meeting Minutes <br />David Relos said we researched the area at Blackthorn to determine which <br />properties were still in the Redevelopment Authority's name that should be <br />transferred to the Redevelopment Commission. Resolution No. 181 transfers those <br />properties to the Redevelopment Commission. There is a matching resolution for <br />the Commission to accept the properties. Larry Meteiver will prepare deeds for <br />the properties. Title work has been done on all the properties to make sure <br />everything is correct. The properties will then be ready to be developed. <br />Upon a motion by Mr. Alvarez, seconded by Ms. Pfotenhauer the Authority <br />approved Resolution No. 181 authorizing the transfer of real property to the <br />Redevelopment Commission. <br />b. Authority approval of Resolution No. 182 authorizing the issuance of the South <br />Bend Redevelopment Authority Lease Rental Revenue Refunding Bonds, Series <br />2013 (Century Center 2008 Project) <br />Mr. Inks said because of the availability of lower interest rates we have the <br />opportunity to save money on our bond. The term will remain the same, maturity <br />is still May I, 2028. The payments will go down about $25,000 annually. The <br />total cash savings over the remaining term of the bond is about $346,000. The net <br />present value of that cash savings is about $284,000. The City Controller has been <br />working on this and has authorized proceedings. <br />Mr. Rampola said Resolution No. 182 authorizes the refunding of the bonds and <br />approval of all of the officers of the Authority entering into all document to do the <br />refunding. The Trust Indenture is in place with U.S. Bank as trustee. We will <br />simply do an amendment to the trust indenture, have the bank sign it, the bonds <br />will be sold in the market. The purchase agreement will need to be signed and <br />then a lease addendum will be prepared after the bond sale after we know exactly <br />what the debt service schedule is we will reduce the lease rental so that will reflect <br />the savings. This resolution authorizes the lease addendum that you sign once it is <br />finalized. The interest rates have been low for 6 -8 years, but when these bonds <br />were sold in 2008 rates were around 4.5 to 5.625 percent. Rates now are 2.74, so <br />about 1.5 to 3.5% lower. The savings are net after the cost of the refinancing. <br />When we look at refunding we want to save 3 %. These bonds were secured, in <br />part, by a cash reserve. The financial advisor and the underwriter are looking at <br />replacing the cash reserve with a surety bond. The bond insurance companies are <br />coming back into the market after they all went bankrupt. If we can get that surety <br />we won't have to use the cash, so the savings will actually be greater. <br />Mr. Alvarez asked if there are any fees. Mr. Rampola said there is an assigned <br />counsel fee for his work, a financial advisor fee for the work Crowe Horvath does, <br />and the underwriter will receive a fee for selling the bonds. All of those fees are <br />2 <br />HAW PDATA AUTHORTY\032013.MIN.DOC <br />