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CITY OF SOUTH BEND REDEVELOPMENT AUTHORITY MEETING– July 22, 2026 <br /> <br /> <br /> <br />Page | 3 <br />next week. If approved, the Authority will return in August to consider the <br />bond resolution and other final financing approvals. Following all required <br />approvals, the bond sale is anticipated in September, with closing expected <br />in early October. <br /> <br />Vice President Hanig asked is there anything about this lease structure that <br />differs from prior lease financings or warrants special attention? Mr. <br />Everett responded that there are no significant differences that were <br />identified. While the Authority’s most recent financing for Four Winds <br />Field used a different structure, leasing the stadium itself and relying on <br />PSCDA revenues for lease payments, this financing is much more <br />comparable to the Authority’s 2023 lease financing. It follows the familiar <br />approach of leasing street assets and funding lease payments through TIF <br />revenues. Overall, nothing unusual or noteworthy stands out in the <br />structure. <br /> <br />Secretary Fitts asked if the lease references assets the Authority has <br />acquired or will acquire. Can you explain how the project area will be <br />phased and how future acquisitions fit within the overall financing, <br />particularly given the maximum bond amount of $33 million? It would be <br />helpful to understand what assets are already under control and what may <br />be added later. Mr. Everett responded that the leased assets include <br />portions of Chapin Street, Sample Street, Colfax Avenue, and other <br />designated streets. At its next meeting, the Authority will consider <br />approving the transfer of these streets from the City to the <br />Redevelopment Authority, with the Board of Works expected to approve a <br />corresponding resolution. The transfer will occur by deed at bond closing, <br />after which the Authority will lease the assets back to the Redevelopment <br />Commission. <br /> <br />The bond authorization is capped at $33 million; however, current <br />projections from Baker Tilly estimate an issuance of approximately $27 <br />million. The higher authorization provides flexibility to accommodate any <br />changes before the bonds are sold without requiring additional approvals. <br /> <br />Vice President Hanig asked is the October closing date firm or just an <br />estimate? Mr. Everett responded that the current schedule anticipates a <br />bond sale in September and closing in early October. At this time, there are <br />no known issues that would require delaying or modifying that timeline. <br /> <br />Secretary Fitts inquired about what interest rate is being projected for the <br />bonds? Mr. Everett stated that the final interest rate has not yet been <br />determined. Based on current market conditions, the tax-exempt bond <br />series is expected to be in the 4% range. The financing is anticipated to <br />include both taxable and tax-exempt bond series, with the taxable bonds <br />funding projects that must be financed on a taxable basis under IRS