The city of South Bend has three bond issues up in the air, and apparently can’t wait for the financial markets bailout bill to work its magic.

From the Eddy Street Commons project to planned repairs at Century Center, South Bend has been struggling with the impact of the country’s financial crisis for months.

It all began back in March when the city first tried to raise the $35-million it needed to play its promised role in the Eddy Street Commons project south of Notre Dame.

The city had agreed to build a new parking garage, and to make other infrastructure improvements, but when it came time to pay for those improvements—its initial attempt to sell bonds—fell flat.

“We really have never seen anything like this,” said Attorney Rich Hill, the leader of Baker and Daniels Public Finance Group. “We’ve never seen a situation in which we would schedule a bond sale and literally no one (no bond buyers) would show up, it’s really a first.”

Eventually, the Eddy Street Commons bonds did go to market and sell, but now, the city is experiencing financial pains all over again.

Now, some three million dollars worth of planned maintenance work at Century Center is up in the air.

“We’re on hold at this point,” said Century Center General Manager Kurt Brown. “The bond that was supposed to be sold back at the tail end of September is not being sold at this time, and it depends upon conditions and hopefully conditions will improve soon.”

The unprecedented lack of interest on the part of bond buyers has had a chilling impact on interest rates, just as Century Center looks to replace its air conditioning system.

“Last week, when we looked at the Century Center financing, the interest rate spike would have taken about 250-to 300-thousand dollars of proceeds away from the project,” said Rich Hill, who served as bond counsel.

Hill says the plan for now is to wait for the “volatility in the market to calm down.”

The City of South Bend also began the year thinking that it could refinance two bond issues and save money.

The list includes a bond used to fund the renovation at the Morris Performing Arts Center.

Given today’s market, those refinancing plans have been put on hold.

Perhaps the largest upcoming bond sale in the area is being planned by the Union North United School Corporation.

The district recently received state approval for some 19-million dollars worth of work. Plans call for building the district’s first ever middle school, and renovating LaVille High School.

Superintendent Larry Phillips today told News Center 16 that he remained optimistic that the district would get a favorable interest rate.

Plans call for selling the bonds sometime before the end of November.