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South Bend Redevelopment Commission <br />Rescheduled Regular Meetm.g —June s, Zoo <br />b. NEW BUSINESS (CONY.) <br />A. Public Hearings <br />(3) continued... <br />por fofi.o propositions, F'm not so sure that <br />this is wise. I Grant to ask hat happens if <br />we don't approve it. What happens to a <br />district that goes into default? <br />Mr. Inks: The district will not go into <br />default. The city's capital budget picks up <br />the shortfall on debt service payments for the <br />Sample -Ewing Development Area because <br />the city is not going to let those debt <br />obligations go into default. <br />Mr. Peczko rskl: Because if they did"? <br />Mr. Inks: It would reflect poorly on the <br />city's credit rating and its cost ofboi owing <br />would go up substantially. <br />Mr. eczowsi: As has happened in larger <br />cities lac Baltimore. <br />Mr. Inks: Yes. Which would Just add <br />another cost to the taxpayers to incur that <br />higher interest rate, if you could finance it at <br />all. So, in this case it's being picked up by <br />the city's capital budget. These funds <br />became available to us because of the <br />penalties that were assessed against the AJ <br />WrIgbt project for not creating all of the jobs <br />they had intended to. So they became <br />additional funds to s. Instead of letting the <br />funds slit idle in a cash account someplace, <br />and because they are related to a Sample - <br />Ewing Development Area project, acid the <br />bonds related to the AJ Wright project, <br />money was put into the Sample- wing <br />1 <br />