2000-07-17 Redevelopment Authority Minutes

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• The South Bend Redevelopment Authority July 17, 2000 Regular Meeting Minutes contributions. Secondly, we had, as a fall-back position, the use of Tax Increment Finance dollars from the downtown TIF district, and third, the Redevelopment Commission had pledged to levy a tax in the event that the first two sources of revenue were insufficient. The Mayor said we have reached the point in the development of the Hall of Fame when the first two sources of income will no longer support the lease payments. Therefore, we are purposing to refinance the Bonds to put a levy on the tax rolls to pay for the Bonds so that the Redevelopment Commission can meet its obligation to pay for the building. The Mayor asked the Authority to pass Resolution No. 141 to pay off the original bonds for the .Hall of Fame, which were structured at a variable rate. These bonds were structured to pay only the interest for the first number of years, so we have not made any principal payments yet. We need to begin making principal payments as soon as possible, which the refunding will allow. The next step is for the Redevelopment Commission to issue a resolution determining its need to levy taxes to make the annual lease payment to the Redevelopment Authority. The Common Council will then issue a resolution supporting the Redevelopment Commission's resolution and establish the rate that is necessary to pay off the bonds. The Mayor said the impact on homeowners in South Bend would be approximately $18./per year. Tax payers were told that a levy might be necessary to pay off the bonds. • Another change being made at this time is related to responsibility for operating costs of the Hall. The City will be responsible for paying for the construction of the building and the initial exhibits. The National Football Foundation will be responsible for the operations of the Hall. Mr. Alvarez asked how much savings would be realized from refinancing the bonds. Ms. Roemer said since the interest rate is variable, and has been ranging from the low 3s to the mid Ss it is difficult to determine how much the savings would be by going to a fixed rate.. There are financing charges for changing over, and if the rate is about 9% and the bonds are paid off in 2017, the cost would be about 9.SM. If the variable rate was at 7% it would have cost 12M. Mr. Alvarez asked if the bonds could be paid off early without a penalty. Mr. Hill said in the early years there would be a small, market rate charge but not in the later years. Upon a motion by Jose Alvarez, seconded by Carolyn Pfotenhauer and unanimously carried, the Authority approved Resolution No. 141 of the South Bend Redevelopment Authority 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. • H:\WPDATAWUTHORTY\071700.min.wpd