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South Bend Redevelopment Commission <br />Regular Meeting October 9, 2007 <br />2. NEW BUSINESS {CONY.} <br />F. Northeast Neighborhood Development Area <br />(1) continued <br />We hope to get on their December agenda. <br />Mr. Hill noted that Resolution Igo. 2387 <br />acknowledges the previously designated <br />Northeast Neighborhood Development Area, <br />acknowledges modification of the <br />development area to add a Housing Program <br />which permits collecting tax increment on <br />e r .residential nits. and acknowledges the <br />existence of a Redevelopment Authority to <br />sell the lease rental. bonds in the amount of <br />S-36,0001,000 for a maximum term of twenty- <br />five years. One other thing resolution <br />No. 2387 does is determine that the financing <br />is not a controlled project. That is very <br />important. if it were a controlled project, <br />that would mean the Commission anticipated <br />using property tax revenues to make lease <br />payments to be devoted to principle and <br />interest payments. This is not a controlled <br />project because the Commission does not <br />anticipate using property taxes to make the <br />lease payments. <br />There has been a. lot of work clone to <br />calculate the tax increment that would be <br />produced by the improvements. Agreement <br />has been reached on what the level of <br />assessment would be and what the tax <br />increment would be, both from residential <br />property and commercial property. Because <br />no property tax levy is anticipated, this is not <br />subject to a petition or remonstrance. <br />Mr. Hill explained that the Lease provides <br />for a maximum semi- annual lease rental <br />5 <br />