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The South Bend Redevelopment Authority <br />February 6, 2008 Meeting Minutes <br />would do in this market. Part of the University's agreement with Kite is that the <br />University has approval rights on the construction of the project. Quality is hard to <br />define but there is more oversight of this project than normal. <br />Mr. Inks said his recommendation would be to approve the Development <br />Agreement, subject to final legal review because there are still a few items that <br />need to be adjusted, like dates and the call provisions as far as minor date <br />changes. So, approval subject to final legal review. without any material changes <br />would be the recommendation. <br />Upon a motion by Ms. Pfotenhauer, seconded by Mr. Alvarez, the Authority <br />unanimously approved the Development Agreement subject to final legal review <br />without any material changes. <br />b. Redevelopment Authority Approval requested for Resolution No. 163 <br />Authorizing the Issuance of the South Bend Redevelopment Authority Lease <br />Rental Revenue Bonds of 2008 (Eddy Street Commons Project) and Regarding <br />other related matters <br />Mr. Rich Hill said this is the bond resolution, which will authorize the issuance of <br />the bonds, and approve the Agency Agreement and the Trust Agreement. The <br />Agency Agreement allows the Board of Public Works to go through the bidding <br />process and enter into the construction management agreement with Kite. The <br />Trust indenture controls the process of the funds. Resolution No. 163 explains <br />what the bonds will be used for, and that the Authority intends to lease the parking <br />garage to the Commission, and references the Trust Agreement and the <br />Development Agreement. The resolution identified U.S.A. Bank as the Trustee <br />and it references the Agency Agreement. It identifies the Authority's intent to <br />prepare a Preliminary Official Statement, which is occurring right now. Section <br />two sets a maximum interest rate of 8%. Section three is the call provision and it <br />creates a special call period of up to six months in which, after the sale of the <br />bonds, if the property does not come from Notre Dame to Kite to the Authority as <br />required by the Lease Purchase structure then the bond proceeds would be held <br />unspent and would be utilized to redeem the bonds. Kite would indemnify the city <br />for any costs involved in that transaction. Section four appoints the Trustee. <br />Section five references the Trust Agreement and the public provisions of the Trust <br />Agreement. Section six authorizes the Secretary-Treasurer to place a copy of the <br />Trust Agreement in the Minutes of the Authority. Section seven references the <br />authorization to enter into a bond purchase agreement with City Securities. City <br />Securities has been working with the City and Kite on the structuring of the <br />financing. Section eight authorizes the President and Secretary of the Authority to <br />approve the Official Statement when it is complete. Section nine covers the timing <br />4 <br />H:\W PDATAW UTHORTY\020608. MIN. DOC <br />