2008-02-06 Redevelopment Authority Minutes

Home Browse Search

The South Bend Redevelopment Authority February 6, 2008 Meeting Minutes of issuing of the bonds. Section ten references the trust Agreement, which has been already approved. Section eleven references the Agency Agreement. Section twelve authorizes the President, Vice-President and Secretary to execute any of the documents that are required on the financing, which is effectively the closing documents. We anticipate selling the bonds this month or the beginning of March. Section fourteen indicates the provision of this resolution and the trust agreement should constitute a contract between the Authority and the holders of the bonds. Mr. Alvarez asked about the interest rate as mentioned in the Development Agreement. Mr. Hill said the City is representing to Kite in the Development Agreement that $30M worth of proceeds will be provided from the bond issue in addition to the other funds that are being made available in terms of sewer capital and Major Moves. If in fact the interest rate is higher than anticipated in the structuring the amount could be lower. If the interest rate is more favorable there could be more proceeds available. We will not know the interest rate until we sell the bonds. Upon a motion by Mr. Thomas, seconded by Ms. Pfotenhauer, the Authority unanimously approved Resolution No. 163 Authorizing the Issuance of the South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2008 (Eddy Street Commons Project) and Regarding other related matters. c. Redevelopment Authority Approval requested for the Trust Agreement between the South Bend Redevelopment Authority and U.S. Bank National Association, Indianapolis, Indiana, Trustee Mr. Hill said this is a typical agreement that the Authority uses when issuing bonds for redevelopment improvements. It does appoint the Board of Public Works to go through the process of bidding out the project. The Board of Public Works complies with all of the public bidding and public notice requirements. There will be an agreement with Kite to serve as the construction manager. The Form of Trust Indenture essentially controls the rent payments that will be received from the Redevelopment Commission to the Authority. The rent payments will essentially be the tax increment that will be generated from the project to pay the principle interest. The bond proceeds will also be held under the Trust Indenture until the call period is over. Upon a motion by Ms. Pfotenhauer, seconded by Mr. Thomas, the Authority unanimously approved the Trust Agreement as presented. • d. Redevelopment Authority Approval requested for the Agency Agreement with the H:\ W PDATAW UTHORTY\020608. MIN. DOC 5