1998-10-19 Redevelopment Authority Minutes

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The South Bend Redevelopment Authority • October 19, 1998 Meeting Minutes only charge for their actual time spent on the refinancing, which is expected to cost less than the not-to-exceed fee. The negotiated sale would have been more expensive to prepare for. Upon a motion by Mr. Kahn, seconded by Mr. Alvarez, and unanimously approved, the Authority authorized the proposal from Baker and Daniels for professional services. b. Authority approval requested for proposal from Crowe Chizek & Company LLP for financial advisory services. Mrs. Kolata stated that Crow Chizek has proposed to serve as financial advisor on an actual cost basis, not to exceed $20,000, except for the printing and publication of the official statement. Crow Chizek will bill according to the fees listed in their proposal, and will provide the official financial statement, contact the different rating agencies, and provide all the data that is necessary for the sale. When refinancing a bond issue, an escrow account needs to be established to pay off bonds by a certain date. Crowe Chizek will set up and structure that escrow account. A separate accounting firm will need to be hired to give an opinion that the amount of treasuries purchased is sufficient to meet the payment schedule of the old bond, and Crowe • Chizek will work very closely with them. Crowe Chizek will also work on the bond closing. The Redevelopment staff, bond counsel and the accounting firm will all work together to provide the information necessary in order to have the bond sale. Crowe Chizek has been following interest rates and watching for a good opportunity to refinance the bond. Our first interest rate on the bond was so good that rates have not fallen fax enough to create a net savings until now. The anticipated savings for refinancing at this time are $675,000. The present plan is to have the bond sale on November 10, 1998 and to close on the bond November 24, 1998. The draft of the official statement has been sent to the three rating agencies: Moody's, Fitch and Standard and Poor's. These agencies will evaluate the City's financial position and give South Bend a bond rating. Mrs. Pfotenhauer asked about Crowe Chizek's proposal: why did Crowe Chizek put in their hourly rates if they are having a fixed rate for their services? Mrs. Kolata stated that she thought the proposal was anot-to-exceed $20,000, but as she looked at the proposal more closely, she recognized that it was not clearly stated. Mrs. Kolata then called Crowe Chizek and asked them to clarify their proposal. Crowe Chizek stated that the proposal was intended to read: not to exceed $20,000. They will send a clarified proposal in the mail. Baker and Daniel's attorney, Mr. Rompola, stated that the purpose of Resolution No. • 2 H:\WPDATA\AUTHORTY\ 101998.MIN