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The South Bend Redevelopment Authority <br />• July 12, 1999 Meeting Minutes <br />Bruneel stated she didn't recall the maximum dollar amount in the original lease <br />that the Redevelopment Authority approved, but this is far less. The lease rate that <br />was initially approved was a steady rate, but we were able to get a lower one. HUD <br />sells Section 108 loans in a series that mature every year, so the payment will <br />decrease over the term of the note. The highest payment will be in July 2003 in the <br />amount of $304,580.00 and then decreasing after that. Mrs. Kolata stated that the <br />beginning payments will only be on the Studebaker property, which we currently <br />own. The Main and Jefferson portion will not be ready for repayment to begin <br />until the property is acquired and demolished and ready for use. The Section 108 <br />money must be spent by the end of April 2000. <br />Ms. Bruneel said the Escrow Agreement is necessary because the lease rentals <br />correspond to the debt service on the Section 108 loan. The payment on the <br />Section 108 loan is semiannual: an interest only payment in February and an <br />interest and principle payment in August. The Redevelopment Commission will <br />make payments of the same amount twice a year, so the Escrow Agent will hold <br />the extra funds, invest them, and then credit the Commission on the amount earned <br />through the investment. <br />. Mrs. Kolata stated that Exhibit A to the Trustee Agreement is the Lease Rental <br />schedule, Exhibit B is the note repayment schedule, Exhibit C is the Wire Transfer <br />instructions. <br />Upon a motion by Jose Alvarez, seconded by Matthew Kahn and unanimously <br />carried, the Authority approved Resolution No.133 approving a modification to <br />and reducing the Annual Rentals on the Lease for the Downtown Property <br />Acquisition Project and approving the execution of an Addendum to the Lease and <br />other related matters. <br />4. CLAIMS <br />Claims submitted for approval July 12, 1999. <br />Century Center Bonds <br />Trustee fees for May 1, 1999 through Apri130, 2000 $1,090.00 <br />College Football Hall of Fame Lease Rental Bonds of 1994 <br />Landesbank Hessen-Thuringen, Letter of Credit fee <br />• H:\WPDATAWUTHORTY\071299.MIN <br />