1998-10-19 Redevelopment Authority Minutes

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The South Bend Redevelopment Authority • October 19, 1998 Meeting Minutes c. Authority approval requested for Resolution No. 129 indicating its intent to issue Redevelopment Authority Lease Rental Revenue Refunding bonds and that certain preliminary costs be reimbursed from the proceeds of said bonds. Mr. Rompola stated that the actions to accomplish the refunding are fairly simple: Resolution No. 129 establishes the intent to issue the bonds. The Redevelopment Authority is authorizing any expenses that occur prior to the issuance of the bonds to be paid out of the proceeds of the bonds. Upon a motion by a motion by Mr. Kahn, seconded by Mr. Alvarez, and unanimously carried, the Authority approved Resolution No. 129 indicating its intent to issue Redevelopment Authority Lease Rental Revenue Refunding bonds and that certain preliminary costs be reimbursed from the proceeds of said bonds. d. Authority approval requested for Resolution No. 130 authorizing the issuance of the South Bend Redevelopment Authority Lease Rental Revenue Refunding Bonds of 1998 (Blackthorn Golf Course Project) and other related matters. Mr. Rompola stated that Resolution No. 130 authorizes the issuance of the bonds and approves the forms of the documents. The "whereas" clauses explain the • issuance of the 1992 bonds to finance the construction of the Blackthorn Golf Course, and that the Authority is authorizing the issuance of the bonds not to exceed $7 million, with the interest rate not to exceed 7%. If interest rates go up to 7% the refunding will not occur because there will be no savings. The rest of the "whereas" clauses recite the litany of documents: the Trust Agreement forms the contract with the bond holders once the bonds are issued, the Official Statement (draft) that Crowe Chizek prepared, the Escrow Agreement explaining that the proceeds are deposited with the Escrow Trustee, and the Continuing Disclosure Agreement, a Securities and Exchange Commission requirement, to make certain annual information is available to bond holders because the City has issued bonds in excess of $10 million. This bond issue is less than $10 million, but because of the Morris Civic bond issue, the combined total is more than $10 million. Section 1 of the resolution authorizes the issuance of bonds in an amount not to exceed $7 million, Section 2 identifies the maturity date of Maxch 1, 2013, which is the same as the 1992 bonds, with the maximum interest rate of 7%. Sections 3 and 4 provide the redemption terms, and bond holders are assured that bonds cannot be refunded before 2006. Under current tax law a bond issue can only be advance-refunded one time. Section 5 discusses the Trust Agreement and indicates that the bonds will be issued pursuant to the Trust Agreement. Section 6 describes and approves the Escrow Agreement. Section 7 describes and approves the Continuing Disclosure Agreement. Section 8 authorizes those documents to be placed with the minutes of this meeting. Section 9 describes • 5 H:\WPDATA\AUTHORTY\ 101998.MIN