1998-01-21 Redevelopment Authority Minutes

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• The South Bend Redevelopment Authority Special Meeting January 21, 1998 Palais Royale. The 1992 Palais Royale Lease has been amended and restated. Norwest Bank will get two lease payments. The first will be for the 1992 issue and the second will be for this 1998 issue. Section 7. approves the draft version of the Official Statement for the bond. There will be changes and revisions to the Statement, mostly resulting from establishing the actual bond principal amount. Section 8. authorizes the publication that will advertise the bond sale. Resolution No.117 provides for the President orVice-President to execute an issuance certificate that will lay out the actual bond size and the bond maturities, on or before the time of the bond sale. Mrs. Kolata further explained the project costs. The bond size will be approximately $13,710,000, and may be a little less than that. Within the $13,710,000. there is $969,000 set aside for capitalized interest: $270,000 for issuance costs and $1,200,000 for a debt service reserve. Project costs provided for in the bond are $13,800,000, but there is $2,250,000 of contributions in the bank which will also be used for project costs related to the Morris Performing • Arts Center. The Entertainment District Board has raised pledges of $5 Million and have increased their goal to $6 Million. Anew architect has been hired and some of his project costs are different. Because of the higher projected costs, the orchestra pit lift will not be completed at this time, but the foundations will be put into place so that it can be added later. Mr. Ladewski asked when the projected completion date would be. Mrs. Kolata stated that they are projecting a February 1999 completion date. The steel would start going up in July. The stage house itself is precast concrete. Mr. Ladewski asked about the total cost of the project. Page 23 seems to state that the cost of the project cannot exceed $400,000. Mr. Rompola explained that the $400,000 is the limitation on construction change orders. Anything over $400,00 must be approved by the Authority and Commission. Mr. Ladewski asked who selects an insurance company for the project. Mr. Rompola stated that the Redevelopment Commission is responsible for the insurance coverage. Liability insurance is provided through the City during the construction period. Mr. Ladewski asked how frequently the Bank sends statements on the project. Mrs. Kolata responded that the construction statements are sent monthly. The • H:\WPDATA~?,UTHORTY\012198.MIN 3