HomeMy WebLinkAboutRM 12-30-87SOUTH BEND REDEVELOPMENT COMMISSION
RESCHEDULED REGULAR MEETING
December 30, 1987
10:00 a.m.
Presiding ficer: Mr. F. Jay Nimtz
President
1. ROLL CALL
Members Present:
Members Absent:
Legal Counsel:
Redevel pment Staff:
News Media:
Others:
2. APPROVAL OF MINUTES
1200 County -City Building
227 W. Jefferson Boulevard
South Bend, Indiana 46601
Mr. F. Jay Nimtz, President
Mr. Roman J. Piasecki, Secretary
Mr. Sandy Combs
Ms. Paula N. Auburn, Vice - President
Mr. Michael Doncho, Assistant Secretary
Ms. Eugenia Schwartz
Mr. Jon R. Hunt, Executive Director
Mrs. Ann E. Kolata, Deputy Executive Director
Mrs. Cheryl Phipps, Office Manager
Mr. James Wensits, South Bend Tribune
Mr. Mark Peterson, WNDU -TV
Mr. Steve Nauratil, WNDU -TV
Mr. Richard Treptow, Springsted, Inc.
Ms. Loren, Rooney, Springsted, Inc.
a. Upon
a motion made by Mr. Piasecki,
COMMISSION APPROVED THE MINUTES OF
seconded
by Mr. Combs and unanimously
THE REGULAR MEETING OF FRIDAY,
carried,
the minutes of the Regular
DECEMBER 11, 1987
Meeting
of Friday, December 11, 1987 were
approved.
b. Upon
a motion made by Mr. Combs, seconded
COMMISSION APPROVED THE MINUTES OF
by
mr. Piasecki and unanimously carried,
THE SPECIAL MEETING OF WEDNESDAY,
the
minutes of the Special Meeting of
DECEMBER 16, 1987
Wednesday,
December 16, 1987 were
approved.
3. APPROVAL
OF CLAIMS
There
re no claims for approval.
THERE WERE NO CLAIMS FOR APPROVAL
4.
There ,Were no communications. THERE WERE NO COMMUNICATIONS
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South Bend Redevelopment Commission
Reschedule4 Regular Meeting — December 30, 1987
5. OLD
There wi.s no old business.
6. NEW
a.
uested for
ting to
tion and
Confirming Recommendations Regarding the
Cit of South Bend Redevelopment District
Tax Increment Revenue Bonds of 1988.
Mr. Treptow, Springsted, Inc., explained
the two documents being approved by
Resolution No. 827. The Confirming
Recommendations contain complete written
doc entation on how the bond issue is
str ctured, including the conditions of
the bond sale, composition of the issue,
repayment, tax increment revenue
projection, bond market conditions,
credit rating, bond insurance, salability
factors, risk factors, early redemption
pro isions, bond sale procedures, etc.
The last two thirds of the booklet is the
tax increment revenue projection,
exp aining where the tax increment
rev nue comes from. It should be a good
ref rence document for the staff.
The draft of the Official Statement is
the document which will be sent out to
banks and bond underwriters as one of the
means of advertising the issue. It
contains the official terms of offering,
exp ains the security, provides all the
disclosure documents, disclosing all the
inherent risks in owning a bond issue,
and explains in detail the repayment
to . The document is a document of the
Comnission. We have applied for
mun'cipal bond insurance from AMBEC. If
the approve it, this issue will receive,
by virtue of the bond insurance, a
Standard and Poors AAA rating and also a
Mo y's AAA. These ratings will increase
the marketability of the bond. Approval
of he bond insurance is likely within a
day or two.
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THERE WAS NO OLD BUSINESS
South Bend Redevelopment Commission
Rescheduleq Regular Meeting - December 30, 1987
6. NEW BUSINESS (Cont.)
a. Continued...
Mr. Wensits asked why such a large
po tion of the bond issue is reserved for
se icing the issue. Mr. Treptow
explained that $175,500 is required to be
set aside and invested as protection for
the purchaser. This is the debt service
reserve. It is not lost money, but will
be used to make the last payment.
$355,000 is set aside in a debt service
account and used to make interest
payments on the bonds themselves until
tax increment revenue is sufficient to
make those payments. Since there is no
general obligation backing these bonds,
they must be set up as very secure in
or *r to be competative.
Mr. Wensits inquired about the timing of
the first payment on the bonds. Mr.
Tre tow responded that semi - annual
int rest payments begin August 1, 1988.
The first payment on the principle will
be 'n 1993.
Upo a motion by Mr. Piasecki, seconded COMMISSION APPROVED RESOLUTION NO. 827
by Combs and unanimously carried, the
Co 'ssion approved Resolution No. 827.
WREN ..V y. .�.
Mr. Hun noted that Mrs. Kolata had PROGRESS REPORTS
attendel a State Tax Board local hearing
on the bond. Approval was granted
pending the written approval order from
the lo ail property tax control board.
The ne4 step on the bond will be the
public ale on January 19.
Mr. Nimtz announced that the Executive
Session held prior to the Regular Meeting
will reconvene following the adjournment
of the Regular Meeting.
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South Bend Redevelopment Conmdssion
Reschedule Regular Meeting - December 30,1987
8. NEXT COMMISSION MEETING
go
The ne meeting of the Redevelopment NEXT COMMISSION MEETING
ComisE ion will be the Annual Organizational
Meetinc January 4, 1988 at 10:00 a.m.
There heing no further business to come before ADJOURNMENT
the Conmission, Mr. Combs made a motion that
the meeting be adjourned. Mr. Piasecki
seconded it and the meeting was adjourned at
10:30 a.m.
Hunt, Executive Director