Amending Issuance of Revenue Bonds Provide for the Cost of Acquiring Land and Constructing Off-Street Parking Facilities

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Thomas J. Brunner, Jr. City Attorney Robert M. Parker Chief Deputy CITY of SOUTH BEND PETER J. NEMETH, Mayor COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 May 17, 1978 South Bend Common Council County -City Building Council Chambers, 4th Floor 227 W. Jefferson Boulevard South Bend, Indiana 46601 Re: Amendment of Ordinance No. 5089 -69, Revenue Bond Ordinance for Off- .Street Parking Facilities Passed June 9, 1969 Dear.Counc.il Members: 219/284 -9241 Amendment of this 1969 Ordinance is required in order to complete refinancing of the parking garages pursuant to Ordinance and Lease already approved by the Council. A new Section 17a is added to the existing Ordinance by this amendment by providing for the depositing with a trustee before the date of maturity of redemption obligations guaranteed by the United States sufficient to redeem the original bond indebtedness. Upon deposit of such money, all liability of the City with respect to the bond shall cease and the holder shall then be entitled to payment out of the money or securities as provided. There is urgent need for the passage of this Ordinance prior to May 30, 1978, and it is requested that the Council either suspend its rules and have second reading of this Ordinance at its May 22nd reading or schedule a special meeting of the Council for May 24th or May 25th for second reading of the Ordinance. Because of the rising bond interest rates and the fear of change in federal income tax regulations dealing with arbitrage rules which could very adversely affect the proposed refinancing, the underwriters contracted to purchase the bond issues well ahead of the originally contemplated schedule. Final sale of the bonds is now scheduled for June 1, 1978. Every effort is being made to