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South Bend Redevelopment Commission <br />Regular Meeting —June 28, 2011 <br />Metronet, annually. Ms. Hedman responded for <br />the St. Joe Valley Metronet they're about <br />$300,000. <br />Mr. Varner: is there another entity associated with <br />Metronet? Ms. Hedman responded that SJVM is a <br />wholly owned subsidiary of St. Joe Valley <br />Metronet. A private for - profit institution. The <br />SJVM is also private. <br />Mr. Varner asked what the revenues are for the <br />SJVM. Ms. Hedman replied that the subscription <br />piece that is charged on an annual basis is <br />$800,000 for both entities. Though they are <br />separate entities for tax purposes, they have same <br />staff and are one entity as far as mission and <br />operations. They are separated for legal tax <br />accounting reasons on how assets and expenses are <br />legally allocated. They issue a consolidated <br />financial statement. <br />Mr. Varner continued to say that the City of South <br />Bend has contributed approximately $3,000,000 <br />the Metronet. With revenues of $800,000 per year <br />he thinks it can cover future infrastructure costs. <br />Ms. Hedman responded that the Metronet model <br />has always been that whatever subscription fees <br />Metronet earns are plowed back into continued <br />infrastructure expansion. So we build up that <br />network all the time in an effort to connect more <br />businesses. There are a number of customer <br />testimonies that businesses are able to do things <br />today on the Metronet that they were not able to do <br />before. In terms of job retention and tax -base <br />retention, there is a very critical benefit to these <br />organizations. <br />Mr. Gilot noted that the original Metronet <br />agreement was a reciprocal agreement where there <br />were traded benefits. The City of South Bend <br />agreed to make available its conduits and <br />handholds. The city made an investment of <br />8 <br />