1998-01-21 Redevelopment Authority Minutes

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• The South Bend Redevelopment Authority Special Meeting January 21, 1998 statements for the other accounts are sent quarterly. When the project is complete, a professional audit will be done. The State Board of Accounts also does an audit. Mr. Ladewski asked if the fund raising had already been completed. Mrs. Kolata stated that $2,250,000 was already in the Entertainment District's account and is earning interest. Some of the interest has been used for fund raising for the project. This money will be held until bond closing and will be added to bond proceeds and used for construction costs. Billing for pledges is on asemi-annual basis. $5.1 Million has been pledged. A copy of the pledges and how they are being payed has been made available to Mrs. Kolata. The Entertainment District Board is looking for foundation money and grants, as well as individual donations, and will continue to raise funds until the opening of the Theater. Ms. Pfotenhauer asked if the fees paid to Norwest are comparable to fees paid. in the past. Mr. Rompola stated that the fees paid are comparable to those paid in the past. Mr. Rompola stated that the bonds will be paid by the Commission Lease Rental • primarily through the Economic Development Income Tax. Pledges that come in after the issuance of the bonds will also be used to pay off the bonds. The City's income from the Economic Development Income Tax (EDIT) is sufficient to pay the bonds off if necessary. Pledges will offset the EDIT. Norwest will be the bond Trustee. They have been very cooperative and easy to work with on other bonds. The proposal from Norwest covers only this bond. The bond that is currently on the Palais has a low interest rate so that it would not be profitable to refinance it. Norwest's initial fee is $4,000 and $2,500 fee per issue (assuming there are more than one bond), and then an annual trustee paying agent and registrar fee based on $3,250 for handling. There are no additional fees. Mrs. Kolata noted that the notice of intent to sell bonds for the Morris Performing Arts Center should be published January 30 and February 6, 1998. Official statements, with the exhibits, will be distributed to underwriters. Upon a motion by Ms. Pfotenhauer, seconded by Mr. Gammage and unanimously carried, the Authority approved Resolution No. 117. b. Authority approval requested for Resolution No. 118 approving a modification to the Lease for the Morris Performing Arts Center Project and • 4 H:\WPDATA\AUTHORTY\012198.MIN