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N <br />A <br />South Bend Redevelopment Commission <br />Special Meeting —April 8, 2004 <br />2. NEW BUSINESS <br />A. South Side Development Area <br />(1) continued... <br />Mr. Inks reported that the total amount of <br />financing is $1.097M on off -site <br />improvements and $1.73M to $2.4M, <br />depending on the TIF generated, will be <br />used on -site. With capitalized interest the <br />bond is estimated to be approximately $5M. <br />It is expected that TIF generated from the <br />project will cover the debt service on both <br />the EDC and TIF revenue bonds over the <br />twenty (20) year amortization period. All <br />revenue generated is to be from the project <br />site itself, rather than the whole allocation <br />area. Only those revenues from the site <br />specific allocation area can be used to repay <br />IL the TIF and EDC bonds. <br />Ms. Greene noted that language in the <br />Development Agreement provides for the <br />recognition of a possible financing gap in <br />which the developer would be at risk. <br />Should the gap be closed and excess TIF is <br />generated from the project, the excess TIF <br />will go to the City and be utilized at the <br />City's discretion. The Agreement, in <br />Section 4.7, provides for the developer to <br />issue a Letter of Credit upon commencement <br />of City work, so that funds expended in <br />anticipation of the project are backed up <br />until the issuance of the bond. <br />Mr. Hunt asked if the entrance to the <br />development would be off Ireland Road at <br />Lafayette. <br />L <br />