Redevelopment commission approves amendments to Sportsplex financing to lower borrowing costs

The Hammond Redevelopment Commission approved a resolution and two contract amendments Oct. 21 that alter the financing structure for the Sportsplex issued in 2018, a move staff said will lower the effective interest cost for the remaining term.

A staff member described Resolution 2025-15 as approval of a "first amendment" to the installment purchase contract and a parallel amendment to a participation agreement tied to the 2018 financing of the Sportsplex. The staff member said the original issuance was about $6,000,000 at an interest rate of 3.42 percent and that a recent balloon or rate increase required action this year.

The staff member said the commission solicited competitive bids in the spring and secured an offer from Horizon Bank with a 4.94 percent rate for the remaining payoff period. "It should say authorizing the execution, not the executive," the staff member said while reviewing the agenda language. Commission members voted unanimously, 5-0, to adopt Resolution 2025-15 and to approve the two contract amendments in subsequent agenda items.

According to the staff presentation, staying with Horizon Bank avoids the costs of a full rebonding or refinancing issuance because the bank met the low bid; the participation agreement amendment formalizes Horizon Bank's role and payment rights. The staff member described the change as saving the commission both on interest and on issuance fees compared with rebonding under current market conditions.

Commission counsel and outside counsel from Barnes & Thornburg were identified in the record; Mr. Ullman (Barnes & Thornburg) appeared online during the discussion. The staff presentation referenced the Hammond Central TIF as the funding source used to make payments under the purchase contract.

The commission approved the resolution and the two contract amendments by roll call, with all five commissioners voting yes. The record shows the actions as approval of Resolution 2025-15, approval of the installment purchase contract amendment, and approval of the first amendment to the participation agreement.

The documents approved relate specifically to the 2018 Sportsplex financing; staff indicated the bank's offer will replace the prior arrangement for the remaining payment term and that the participation agreement specifies how Horizon Bank participates in the payments.