1997-05-02 Redevelopment Authority Minutes

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South Bend Redevelopment Authority • Regular Meeting -May 2, 1997 Economic Development Income Tax. There will be no property taxes used to pay for the new bond issue. The bond will include a provision for a general obligation backup but that is for marketing purposes only, there will be sufficient funds from the EDIT tax to pay for the bond issue without levying a tax. It's anticipated that the bond won't be sold until. late 1997 or early 1998 to allow for receipt of the construction bids. Randy Rompola stated that with respect to the source of funds for the bonds, the financial advisor shows that it is possible to pay for the bond solely from EDIT taxes if pledges come in less than what is expected. The coverage is about 170% without the pledges; but the intention of Redevelopment is to use the pledges for lease payments and to make-up the balance with EDIT. Mrs. Kolata noted that cash-on-hand will be used to reduce the bond size when the bond is finally structured. Upon a motion by Mr. Ladewski, seconded by Mr. Gammage and carried, the Authority adopted Resolution No. 113, a Resolution of the South Bend Redevelopment Authority establishing .its intent to issue Redevelopment Authority lease rental revenue bonds and that certain preliminary costs be reimbursed from the proceeds of said bonds. • b. Authority approval requested for Resolution No. 114, a Resolution of the South Bend Redevelopment Authority approving an amended and restated lease for certain land and public improvements between the South Bend Redevelopment Authority, as lessor, and the South Bend Redevelopment Commission, as lessee, approving preliminary plans, specifications and cost estimates for the project and other related matters. Randy Rompola of Baker & Daniels stated that Resolution No. 113 established the intent of the Redevelopment Authority to issue tax exempt bonds. The Resolution No. 114 approves an amended and restated lease. This is an amended and restated lease because there was a financing in 1992, whereby the Redevelopment Authority acquired titled to the Palais Royale building. Due to that fact, there is currently a lease financing with respect to the Palais Royale. The Morris Civic, the real estate and all the improvements to the Morris Civic and to part of the Palais Royale which becomes the Morris Performing Arts Center are added to that existing lease. He noted that the lease terms and the maximum lease rental are set at twenty years with semi-annual lease payments of $695,000. Once the bonds are issued a lease addendum will be presented to reduce the term of the lease to match the term of the bonds and the maximum lease rental will be reduced to match the debt service on the bonds. He noted that the Palais Royale lease is listed in the amended and 4