Redevelopment Authority Meeting Minutes 7.22.2026 - Signed

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CITY OF SOUTH BEND I REDEVELOPMENT AUTHORITY MEETING- July 22, 2026 next week. If approved, the Authority will return in August to consider the bond resolution and other final financing approvals. Following all required approvals, the bond sale is anticipated in September, with closing expected in early October. Vice President Hanig asked is there anything about this lease structure that differs from prior lease financings or warrants special attention? Mr. Everett responded that there are no significant differences that were identified. While the Authority's most recent financing for Four Winds Field used a different structure, leasing the stadium itself and relying on PSCDA revenues for lease payments, this financing is much more comparable to the Authority's 2023 lease financing. It follows the familiar approach of leasing street assets and funding lease payments through TIF revenues. Overall, nothing unusual or noteworthy stands out in the structure. Secretary Fitts asked if the lease references assets the Authority has acquired or will acquire. Can you explain how the project area will be phased and how future acquisitions fit within the overall financing, particularly given the maximum bond amount of $33 million? It would be helpful to understand what assets are already under control and what may be added later. Mr. Everett responded that the leased assets include portions of Chapin Street, Sample Street, Colfax Avenue, and other designated streets. At its next meeting, the Authority will consider approving the transfer of these streets from the City to the Redevelopment Authority, with the Board of Works expected to approve a corresponding resolution. The transfer will occur by deed at bond closing, after which the Authority will lease the assets back to the Redevelopment Commission. The bond authorization is capped at $33 million; however, current projections from Baker Tilly estimate an issuance of approximately $27 million. The higher authorization provides flexibility to accommodate any changes before the bonds are sold without requiring additional approvals. Vice President Hanig asked is the October closing date firm or just an estimate? Mr. Everett responded that the current schedule anticipates a bond sale in September and closing in early October. At this time, there are no known issues that would require delaying or modifying that timeline. Secretary Fitts inquired about what interest rate is being projected for the bonds? Mr. Everett stated that the final interest rate has not yet been determined. Based on current market conditions, the tax-exempt bond series is expected to be in the 4% range. The financing is anticipated to include both taxable and tax-exempt bond series, with the taxable bonds funding projects that must be financed on a taxable basis under IRS Page 13