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Aaron Perri, Executive Director of Venues Parks &Arts with offices at 321 E. Walter Street, <br /> stated, This evening you will be considering two (2) resolutions for the widely publicized Park <br /> Bonds. This is important to the My SB Parks & Trails Initiative. The full presentation will be <br /> given this evening as you have all seen that a couple times. This is the Riverwest TIF Bond <br /> which was unanimously approved by the Redevelopment Commission and was presented at two <br /> (2) Redevelopment Commission meetings. This is to support the parks improvement projects in <br /> the Riverwest TIF District as well as the one immediately adjacent. Particularly, we are looking <br /> at Pulaski Park, Leeper Park, Howard Park and Seitz Park. We are also looking at the <br /> connectivity and the trails systems that feed to the riverfront from those areas. He provided a <br /> handout(available in the City Clerk's Office)that depicted in-depth information about the <br /> Riverwest TIF Bond. He continued, This bond makes up about one third of the funding for the <br /> entire investment. The other third will be the Parks Bond and the other third is the private sector <br /> investment. <br /> Randy Rompola, Barnes & Thornburg with offices at 100 N. Michigan Street, stated, The <br /> resolution before you is to approve a bond issue that is proposed to be issued by, and on behalf <br /> of, the South Bend Redevelopment District. The Redevelopment Commission is the governing <br /> body of the District. We are anticipating that these bonds be issued in the Spring of 2018 for that <br /> is the timing of when these funds would be needed. We thought it would make sense to approve <br /> both the Park and Redevelopment Bonds. The bonds will be paid by the TIF revenues that will <br /> be available in the Riverwest Development Area. There is also a proposed tax back-up in place <br /> to be sure the interest rate remains low. The TIF revenues will pay the debt service on the bonds <br /> but in order to provide the lowest possible interest,the tax back-up will be in place. <br /> Committee Chair White opened the floor to questions from Committee and Councilmembers. <br /> Councilmember Jo M. Broden asked, What would the rate differences be if we didn't have the <br /> tax back-up plan? <br /> Matt Eckerle,Umbaugh and Associates with offices at 8365 Keystone Crossing, Indianapolis, <br /> IN, replied, That is difficult to quantify at this point. For example, the Smart Streets bonds done <br /> back in 2015 had an S&P rating of double-A (AA). Recently there was a pure TIF deal in <br /> Mishawaka of similar size but it was only an A rating. In terms of actual interest rates, it really <br /> depends on the day of the week. It could be as low as five (5) basis points or as high as forty (40) <br /> basis points. The bond market will have greater interest in the deal if you have that higher rating <br /> with the property tax back-up in place as opposed to having only a pure TIF revenue deal that <br /> stands on its own. The Riverwest Allocation Area was originally established in the 1980s and has <br /> been amended at various times throughout its history. There have been sections added <br /> throughout the years and their expiration dates may be earlier than the original area. With these <br /> bonds, we have accounted for that and have estimated how the revenues will be affected as those <br /> sections expire. <br /> Councilmember Broden followed up, How does this Riverwest TIF fund Howard and Seitz Park? <br /> What is the legal rationale for that? <br /> 2 <br />