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South Bend Redevelopment Authority <br />Special Meeting -June 28, 1994 <br />3. NEW BUSINESS (Cont.) <br />a. continued... <br />will not go out of existence until the Letter of Credit is paid off. There could <br />be amounts owing on the Letter of Credit after the bonds are paid off. This <br />change keeps the Lease active until the Letter of Credit is paid off. The term <br />of the. Lease is not being extended. That term is set by the State Tax Board. <br />However, in the event that bonds are paid off early, the Lease would continue <br />in effect until the Letter of Credit was also paid off. <br />Mr. R,ompola noted that another change to the Lease is the authorization of a <br />Bond Anticipation Note which is interim financing until the actual bond is <br />sold. We are currently working with Fuji Bank in New York to get a Letter <br />of Credit. Although that has been approved, there are things that need to be <br />done before we can actually close on the bonds. This Bond Anticipation Note <br />will give us funds to pay contractors for work in progress until we have <br />proceeds from the bonds. Resolution No. 95 authorizes a Bond Anticipation <br />Note in an amount not to exceed $2,000,000. The maximum term for the <br />Bond Anticipation Note is 90 days, although we expect to pay it off in a week <br />or so, when the Hall of Fame bond is sold. This BAN is payable solely out of <br />the proceeds of the sale of the bond. The Lease sets a maximum interest rate <br />for the BAN at 10 % . <br />Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski and <br />unanunously carried, the Authority approved Resolution No. 95 approving the <br />execution of an Addendum to the Lease between the Authority and the South <br />Bend Redevelopment Commission. <br />4. APPROVAL OF CLAIMS <br />a. Authority rescissission m~uested for Claim and Authority anvroval reauested <br />for corrected Claim from Berreth Oil. <br />Mrs. Kolata explained that the Authority approved a claim on June 21 for <br />Berreth Oil in the amount of $1120.59. There was an addition error on the <br />claim, so the claim should have been listed in the amount of $1147.79. We <br />would like to rescind the approval and approve the claim as corrected. <br />-2- <br />