04-23-10 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting –April 23, 2010 7. PROGRESS REPORTS (CONT.) funding has been from a Section 108 Loan that the city sought in 2005. The Section 108 Loan was approved for $9.2M. The department has drawn about $7.2M on that loan and is at the stage where we need to make a decision on the final draw. Staff has decided to not draw the final $2M. That loan was taken out before the Airport Economic Development Area was merged with the Sample-Ewing Development Area. Prior to the merger there was no TIF being generated in the Sample- Ewing Development Area. The loan was the only source of funding available. We now have significant funds available in the Airport Economic Development Area TIF. The budget created for 2010 did not anticipate any revenues from 2010 taxes because the Auditor’s Office has been behind in billing for taxes for several years. Property tax bills seem to be back on schedule, so we expect our budget for the Airport area will be up $4-5M with the first installment of 2010 taxes. We believe the $2M remaining on the loan can be foregone. Ms. Jones asked the repayment schedule for the $7.2M we have used. Mr. Inks did not remember, but thought it was a pretty short timeline. The source of repayment is to be CReED. The CReED had been estimated to be coming in at $1M per year, sufficient to repay the Section 108 Loan. But, given the downturn in the economy, the CReED is only returning about $650,000 per year. It may be necessary to use TIF to supplement repayment of the loan. Mr. Inks noted that all the Section 108 Loan work went through the Board of Public Works, not the Commission. In the future the Commission can expect to see more of Ms. Kolata’s work on the Commission agenda. Mr. Downes asked for a progress report at a future meeting on Geri Hathaway’s work on behalf of Ignition Park. Mr. Inks said he would arrange that. 26