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South Bend Redevelopment Commission <br />Regular Meeting –June 18, 2010 <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br />I. Other <br /> <br />(3) continued… <br /> <br />The project list is not firm, but an estimate of <br />what needs to be done from TIF revenues. <br />There may be some substitutions throughout <br />the year. <br /> <br />Mr. Varner noted that the St. Joseph Valley <br />Metronet is a private corporation. He thinks <br />it should reimburse the city something each <br />year for the investment the city has made. <br />Comcast pays the city $800,000 per year for <br />right of way. The Metronet is successful. <br />Each of the original investors put in <br />$250,000. Mr. Varner appreciates everything <br />it does, but he feels at some point it would be <br />appropriate for them to reimburse the city for <br />some of its expenditures on the Metronet’s <br />behalf. Mr. Leone noted that the city <br />receives a quid pro quo allocation of a certain <br />number of fiber cable it can use for free. <br /> <br />Mr. Inks noted that the Erskine Village TIF is <br />also very successful, generating more tax <br />revenue than expected. We hope we can pay <br />off those bonds early also. In the case of <br />those bonds, they cannot be paid off quite as <br />early due to the terms of their sale. There are <br />no call provisions until 2017. We intend <br />collect the TIF and let accumulate in an <br />account, building a cash balance, waiting for <br />the earliest possible time we can pay off the <br />full amount. <br /> <br />Mr. Leone noted that the Commission cannot <br />release any of the TIF funds for other <br />jurisdictions while those bonds are <br />outstanding. <br /> 28 <br /> <br />