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South Bend Redevelopment Commission <br /> Regular Meeting—April 26, 2011 <br /> 6. NEW BUSINESS (CONT.) <br /> D. Airport Economic Development Area <br /> (4) continued... <br /> Ms. Leonard noted that staff is requesting <br /> permission to use approximately $75,000 of <br /> Airport TIF monies to finance the purchase <br /> of 3 pieces of maintenance equipment for the <br /> golf course. The Airport TIF monies will be <br /> repaid by Blackthorn Golf Course at 0% <br /> interest over 8 years—making 6 seasonal <br /> payments totaling approximately $9,400 per <br /> year to efficiently manage cash flow. The <br /> pieces are: 1 Triplex Green Mower; 1 <br /> Walking Aerator for Greens; and 1 Green <br /> Tee Bank Mower. These pieces will replace <br /> current equipment pieces which are each <br /> over 15 years old. The bids for this <br /> equipment are currently under review. If the <br /> Commission does not approve financing <br /> through TIF, we will need to seek financing <br /> through the vendor, at a higher cost. <br /> Ms. Leonard provided a pro forma for <br /> Blackthorn operations and capital through <br /> 2016 which shows we expect sufficient cash <br /> flow to support these payments. In addition, <br /> we have added additional anticipated capital <br /> needs to the forecast. If net operating income <br /> does not meet projections, these additional <br /> capital purchases will need to be adjusted. In <br /> any case, we would expect the $9,400/year <br /> payment requested here would not cause an <br /> undue burden on Blackthorn operations. <br /> Mr. Varner asked why we wouldn't deplete <br /> Blackthorn's capital funds before tapping <br /> TIF funds. Ms. Leonard responded that the <br /> capital funds are earmarked for other capital <br /> expenditures. <br /> 18 <br />