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HomeMy WebLinkAbout2000-10-02 Redevelopment Authority Minutesti C~ SOUTH BEND REDEVELOPMENT AUTHORITY REGULAR MEETING October 2, 2000 1308 County-City Building 1:30 p.m. 227 West Jefferson Boulevard Presiding: Ms. Carolyn Pfotenhauer South Bend, IN 46601 The October 2, 2000 Regular Meeting of the Redevelopment Authority was called to order at 1:34 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 Attorney: Mr. Randy Rampola, Baker and Daniels Redevelopment Staff: Mr. Donald Inks, Director Mrs. Jenny Hullinger, Recording Secretary 2. APPROVAL OF MINUTES • a. Approval of the Minutes of the September 18, 2000 meeting. Upon a motion by Jose Alvarez, seconded by Carolyn Pfotenhauer, and unanimously carried, the Authority approved the Minutes of the Regular Meeting of September 18, 2000. 3. NEW BUSINESS a. TEFRA Public Hearing on the Issuance of Bonds. Mr. Rampola stated that in order to sell the bonds in question as 501(c)(3) bonds and allow not-for-profit entities to become users of the College Football Hall of Fame facility and perhaps underwrite some of the cost of the Hall, a TEFRA Public Hearing needed to be held. The National Football Foundation is a 501(c)(3) organization and can be one of the users of the facility. Mr. Alvarez asked what TEFRA stood for. Mr. Inks said it is Tax Equity and Fiscal Reform Act of 1986. Ms. Pfotenhauer opened the public hearing for anyone who wished to be heard. Since no one came to the hearing, Ms. Pfotenhauer closed the Public Hearing. • H:\WPDATA\AUTHORTY\100200.min.wpd J • b. Authority approval requested for Resolution No.142 authorizing the issuance of the South Bend Redevelopment Authority Lease Rental Revenue Refunding Bonds of 2000 (College Football Hall of Fame Project) and. other related matters. Mr. Rampola said Resolution No. 142 provides for refunding of the bonds. The plan of finance is to refund the variable rate debt for the College Football Hall of Fame into affixed-rate debt. Currently, the interest rate is reset weekly, and payable monthly, and has had a cap of 7%. The cap expired last year and a new cap agreement would have to be entered into, but with interest rates rising, the cost of the cap would be more expensive. The administration desires more level debt service payments on the bond. Currently under the existing documents, the principle is not payable until .2006. Reamoritization of the debt will cause us to start repaying the principle in 2001., which will result in savings. The bond resolution itself provides for the issuance of bonds in an amount not-to-exceed $.17,450,000. The actual amount expected to be paid is closer to $16 million. The maximum rate of interest is set at 6.5%. The Redemption provisions in Section 3 show that the bonds can be refunded at no premium in 10 years. Section 4 cuts down on the Trustee expenses by having one bond for the length of the financing which would cover the mandatory redemptions. Section 5 explains the Trust Agreement that has a fixed interest rate. Section 6 approves the Escrow Agreement whereby the bond proceeds will be deposited in the escrow for approximately two weeks, and earn some interest in the two-week period. Crowe Chizek will do a report stating the • escrow is sufficient to pay the bonds off at the time of the issuance of the new bonds. Section 7 is for the Continuing Disclosure Undertaking Agreement relating to the number of bonds the City has. Because we have more than $10 million worth of bonds, we need to comply with the FCC in disclosing certain information on our bonds. Section 8 provides for the sale of bonds to the underwriter. City Securities bid the lowest on interest rate, with Bank One coming in second. City Securities would take the majority of the bonds, and Bank One would take a minority of the bonds. Section 9 authorizes all the documents to be signed and put into records. Section 10 authorizes the bond counsel to give legal opinion. Section 11 approves the Official Statement. All of the documents are being approved in draft form and Section 12 states that Resolution No. 142 authorizes changes to be made to get the documents to final form. Section 13 authorizes the redemption notice. On the day the bonds are issued one of the documents that will be executed would be the letter to the Trustee directing them to redeem all of the bonds. If the fixed rate drops in the future we would have the opportunity to advance refund the bonds (put money in escrow for the entire term of the fixed -rate so that we can take the bonds out one more time). Section 14 relates to the TEFRA Hearing and the need for the Mayor to approve the issuance of the bonds. Upon a motion by Ms. Pfotenhauer, seconded by Mr. Alverez, and unanimously carried, the Authority approved Resolution No.142 authorizing the issuance of the South Bend Redevelopment Authority Lease Rental Revenue Refunding Bonds of • 2000 (College Football Hall of Fame Project) and other related matters. H:\WPDATAWUTHORTY\ 100200.min.wpd • The South Bend Redevelopment Authority October 2, 2000 Meeting Minutes c. Authority approval for Trust Agreement between the South Bend Redevelopment Authority. and Wells Fargo Bank Indiana, N.A. (Lease. Rental Revenue Bonds of 2000) (College Football Hall of Fame Project) Mr. Rampola said the Trust Agreement is with Wells Fargo, formerly Norwest Bank, who has submitted a proposal to serve as Trustee. The Trust Agreement provides for the issuance of the bonds and the mechanism that allows the Redevelopment Commission to make its lease rental payment. The Trustee makes sure everything is done according to the agreement. Mr. Rampola said since the City is levying a tax to help pay for the Hall of Fame, money will be available to pay principle. Mr. Inks asked if the first payments would be due February 1, 2001 or 2002. Mr. Rampola said a lease payment will be due in January just for interest. The first principle payment will be due August 2001. Upon a motion by Mr. Alvarez, seconded by Ms. Pfotenhauer, and unanimously carried, the Authority approved the Trust Agreement between the South Bend • Redevelopment Authority and Wells Fargo Bank Indiana, N.A. (Lease Rental Revenue Bonds of 2000) (College Football Hall of Fame Project). 4. CLAIMS There were no claims presented at the meeting. 5. NEXT MEETING DATE: November 20,-2000 6. ADJOURNMENT There being no further business to come before the Redevelopment Authority the meeting was adjourned at 1:55 p.m. r -~. ~4 ' Carolyn V. enhau sident ~~ ~~f Donald Inks, Director H:\WPDATAWUTHORTY~100200.min.wpd