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HomeMy WebLinkAbout2000-07-17 Redevelopment Authority MinutesVELOPMENT AUTHORITY `~,,~ SOUTH BEND REDS MEETING REGULAR Building 1308 Co~ty"City • 227 West Jeffers n B~ 46601 July 17 ~ 2000 South Be 1:30 p'm' Ms. Carolyn Pfotenhauer din ~ ent Authority was called to order at Press. g of the Redevelopm resent. afar Meeting auer. There was a quorum p The July 17, 2000 Reg Carolyn pfotenh 1:33 p•m• by its President, 1. ROLL CALL Members Present: Redevelopment Staff: Others Present: Pfotenhauer, President Ms Carolyn V • ecretary Mr. Jose Alvarez, S Mr, Donald Inks Mr. Owen Rock Recording Secretary Mrs. Jenny Hollinger, er and Daniels Mr. Rich Hill, Bak Mayor Stephen Luecke Controller Ms. Catherine Roemer, • INUTES eeting of Apri126, 2. APpROV AL OF M e afar M 1 of the Minutes of the Rescheduled R g Approva a• auer, and 2000. Carolyn Pfotenh Meeting seconded by e afar otion by Matthew Ka~~ roved the Minutes of the R g Upon a m carried, the Authority aPp ~animously of Apxil 26, 2000. NEW BUSINESS olution No.141 of the So lohmend 3. royal requested for Res Authority apP indicating its inte $onds and that certain a• anent Authority ~ efunding onds. Redevelop the proceeds of said B Authority Lease Rentreimbursed R om preliminary costs be 141 concerns the Hall of usm B° t e overall Mr Inks eXplained that Rthelr to of payment for the B a Foo ball Hall of Fame we refunding ""111 accelerat we built the Colleg onsorships and cost. Mayor Luecke said that w en a off the bonds with corporate sp first of all intended to p Y • g:\VJPDATA\AUTHORTSI\U71"100.min.wPd • The South Bend Redevelopment Authority July 17, 2000 Regular Meeting Minutes contributions. Secondly, we had, as a fall-back position, the use of Tax Increment Finance dollars from the downtown TIF district, and third, the Redevelopment Commission had pledged to levy a tax in the event that the first two sources of revenue were insufficient. The Mayor said we have reached the point in the development of the Hall of Fame when the first two sources of income will no longer support the lease payments. Therefore, we are purposing to refinance the Bonds to put a levy on the tax rolls to pay for the Bonds so that the Redevelopment Commission can meet its obligation to pay for the building. The Mayor asked the Authority to pass Resolution No. 141 to pay off the original bonds for the .Hall of Fame, which were structured at a variable rate. These bonds were structured to pay only the interest for the first number of years, so we have not made any principal payments yet. We need to begin making principal payments as soon as possible, which the refunding will allow. The next step is for the Redevelopment Commission to issue a resolution determining its need to levy taxes to make the annual lease payment to the Redevelopment Authority. The Common Council will then issue a resolution supporting the Redevelopment Commission's resolution and establish the rate that is necessary to pay off the bonds. The Mayor said the impact on homeowners in South Bend would be approximately $18./per year. Tax payers were told that a levy might be necessary to pay off the bonds. • Another change being made at this time is related to responsibility for operating costs of the Hall. The City will be responsible for paying for the construction of the building and the initial exhibits. The National Football Foundation will be responsible for the operations of the Hall. Mr. Alvarez asked how much savings would be realized from refinancing the bonds. Ms. Roemer said since the interest rate is variable, and has been ranging from the low 3s to the mid Ss it is difficult to determine how much the savings would be by going to a fixed rate.. There are financing charges for changing over, and if the rate is about 9% and the bonds are paid off in 2017, the cost would be about 9.SM. If the variable rate was at 7% it would have cost 12M. Mr. Alvarez asked if the bonds could be paid off early without a penalty. Mr. Hill said in the early years there would be a small, market rate charge but not in the later years. Upon a motion by Jose Alvarez, seconded by Carolyn Pfotenhauer and unanimously carried, the Authority approved Resolution No. 141 of the South Bend Redevelopment Authority indicating its intent to issue Redevelopment Authority Lease Rental Revenue Refunding Bonds and that certain preliminary costs be reimbursed from the proceeds of said Bonds. • H:\WPDATAWUTHORTY\071700.min.wpd `~ • SOUTH BEND REDEVELOPMENT AUTHORITY REGULAR MEETING July 17, 2000. 1308 County-City Building 1:30 p.m. 227 West Jefferson Boulevard Presiding: Ms. Carolyn Pfotenhauer South Bend, IN 46601 The July 17, 2000 Regular Meeting of the Redevelopment Authority was called to order at 1:33 p.m. by its President, Carolyn Pfotenhauer. There was a quorum present. 1. ROLL CALL Members. Present: Ms. Carolyn V. Pfotenhauer, President Mr. Jose Alvarez, Secretary Redevelopment Staff: Mr. Donald Inks Mr. Owen Rock Mrs. Jenny Hullinger, Recording Secretary Others Present: Mr. Rich Hill, Baker and Daniels . Mayor Stephen Luecke Ms. Catherine Roemer, Controller [] 2. APPROVAL OF MINUTES a. Approval of the Minutes of the Rescheduled Regular Meeting of Apri126, 2000. Upon a motion by Matthew Kahn, seconded by Carolyn Pfotenhauer, and unanimously carried, the Authority approved the Minutes of the Regular Meeting of Apxi126, 2000. 3. NEW BUSINESS a. Authority approval requested for Resolution No.141 of the South. Bend Redevelopment Authority indicating its intent to issue Redevelopment Authority Lease Rental Revenue Refunding Bonds and that certain. preliminary costs be reimbursed from the proceeds of said Bonds. Mr. Inks explained that Resolution No. 141 concerns the Hall of Fame Bond. The refunding will accelerate the rate of payment for the Bond and thus lower the overall cost. Mayor Luecke said that when we built the College Football Hall of Fame we first of all intended to pay off the bonds with corporate sponsorships and • H:\ WPDATAWUTHORTY\071700.min.wpd